Why Is Amazon So Dominant?

Amazon (AMZN) doesn’t have any true competition. Think about it. What other company sells pretty much everything? None. Walmart obviously comes to mind but do you think you can walk into a Walmart (WMT) or go online to their website and get Unicorn Meat? You can get that on Amazon.

Amazon has a product called Amazon Web Services which offers reliable and, of course, inexpensive cloud computing services. They seem to pick up a new large client for their cloud services every day. Unlike their retail merchandising business, Amazon Web services is insanely profitable. The bigger that AWS gets, the more slack they have on the retail side.

How can other companies compete? Diversified, non correlated revenue streams are key. Take a technology business and marry it to a retail operation. What if Microsoft (MSFT) or Alphabet/Google (GOOGL) teamed up with Walmart (WMT)???? Now that would be interesting.