How e-commerce giants can tumble

How e-commerce giants can tumble

There is a belief amongst America’s corporate elite that there are some businesses that are too large to fail. They have painted this image to a lot of ordinary people who now also believe that some companies are too big to fail. If history is any lesson there are absolutely no Empires that are too big to fail. All empires in history have failed when people believed that they were too big. During the mid-twentieth century a lot of business tycoons believed in the notion that certain businesses where going to last forever or at least for centuries. In modern times however this idea has been proved to be false. A lot of large companies have failed due to technological advancement in which the companies could not keep up with. Other companies have failed due to the change in consumer behaviour. E-commerce giants are not permanent monopolies. They are actually companies like any other which are going to face failure if they do not innovate fast enough. Although there seems to be no stop in Amazons growth a lot of speculators have actually commented that the company is in a tech bubble that is going to burst. A lot of people argue that Amazon seems dominant for now but the company is more fragile than expected.

E-commerce giants can tumble due to technological competition

Technological competition from smaller competitors has proven to be the death nail to many tech related businesses. This means that any e-commerce business can fail within a short space of time if technological competition becomes stiff. Many analysts have argued that e-commerce companies such as Amazon are going to be facing a lot of competition in innovation which will challenge their dominance in the e-commerce sector. This means that there are no companies which are too big to fail.