Qi mentioned that Amazon would stop selling Apple TV and Google Chromecast recently because these devices could not work with Prime Video, Amazon’s in-house streaming video service. Qi also cited opinions of an analyst at Edison Investment Research who disagreed with the approach of Amazon. However, Qi personally agreed with the action of Amazon, for she was convinced that the new approach of Amazon could prevent its competitors from making benefits, and would make Amazon more competitive.[1]
Nevertheless, I doubt the viewpoint of Qi. I think the new approach can neither benefit Amazon nor weaken its competitors. On the opposite, I feel that the new approach may even decrease the sales volume of Amazon. Amazon is just a platform that buyers and sellers can trade online. Although Amazon develops and sells its own products, such as Prime Video and fire phone, which did not achieve success in sales in the long run. Ironically, Amazon gains a lot of benefits from the rent paid by those sellers who sell Apple TV and Google Chromecast every year. Furthermore, many customers may dissatisfy with the Amazon’s new approach. As a consequence, both Amazon service quality and its customer quantity will go down.
Therefore, I strongly disagree with the approach of Amazon, and suggest that Amazon should allow various kinds of goods be sold on its websites.
Reference:
- https://blogs.ubc.ca/taylordingqi/2015/10/04/competition-strategy-amazon-stop-selling-apple-tv-and-google-chromecast/