How To Navigate A Vertical Merger After ✓ Solved

Read the document “How to Navigate a Vertical Merger after

Read the document “How to Navigate a Vertical Merger after the AT&T and Time Warner ruling.” The document highlights these three actions: Document why the merger is pro-competitive, hire a structural economist to provide market insight, and assess and analyze the merger’s effect abroad. Then watch the video “The Amazon Empire.” Answer the following questions:

1. (A) How does Amazon use their organizational structure (think how they are structured in different industries) to justify their stance that they are not too big (i.e., their argument that they shouldn’t be broken up because they aren’t a monopoly)? Essentially, after watching the video, what do you think is their core argument against being a monopoly.

   (B) Do you agree with their argument?

2. What stage of moral development do you think Amazon prefers/operates? Do you think their moral reasoning/behaviors at this stage are sustainable?

Paper For Above Instructions

In today's evolving business landscape, large corporations face scrutiny regarding their influence and market power, particularly in the context of Amazon. To understand how Amazon defends its position as a non-monopolistic entity, it is essential to analyze its organizational structure and the strategic justifications it offers.

A. Amazon's Organizational Structure and Monopolistic Arguments

Amazon operates in various industries, including e-commerce, cloud computing, digital streaming, and artificial intelligence. This diversification is pivotal to its argument against being labeled a monopoly. The company claims that its vast organizational structure enables it to foster competition rather than stifle it. For example, Amazon Web Services (AWS) competes with other cloud services providers, thereby contributing to a dynamic market environment.

The company's core argument against being considered a monopoly hinges on its focus on consumer benefits. Amazon emphasizes that its low prices, extensive product selection, and rapid delivery options enhance consumer choice. By framing its operations in this manner, the company attempts to demonstrate that it does not exert monopolistic control but rather encourages market competition and innovation.

Furthermore, Amazon argues that its various business segments operate independently, each vying for market share in their respective sectors. By illustrating competitive dynamics within its different divisions, Amazon seeks to dispel the notion of monopolistic behavior and instead presents itself as a catalyst for growth in multiple markets.

B. Personal Agreement with Amazon's Argument

Agreeing or disagreeing with Amazon’s stance largely depends on one’s perspective on market competition and consumer welfare. On one hand, it can be argued that Amazon genuinely facilitates competition through competitive pricing and innovative services while benefiting consumers.

However, critics suggest that Amazon’s market power can overshadow smaller competitors, potentially leading to a monopolistic landscape in the long run. This aspect complicates the evaluation of whether Amazon's claims hold merit. While it is true that consumers may benefit from lower prices, one must consider whether this advantage comes at the expense of smaller businesses that cannot compete on the same scale.

In conclusion, Amazon's argument relies on its innovation-driven approach and extensive portfolio that purportedly enhances competition. Whether one agrees with this stance often entails evaluating the balance between consumer benefits and the competitive landscape of the markets in which Amazon operates.

2. Amazon's Stage of Moral Development

Considering the framework of moral development, it can be speculated that Amazon operates primarily at the conventional level as described by Lawrence Kohlberg. This stage suggests that individuals and organizations make decisions based on social norms and the expectations of others. In Amazon's case, the company likely feels the pressure to adhere to societal expectations, which may include fair labor practices and ethical business operations.

However, Amazon's high-profile controversies—ranging from treatment of warehouse employees to its impact on local economies—have led some to question the sustainability of its moral reasoning. Sustainable moral behavior would require the company to invest more deeply in ethical practices and consider the broader societal implications of its actions.

While Amazon may align with conventional moral standards by championing consumer choice and innovation, its practices raise concerns about the long-term sustainability of its moral framework. For Amazon to move towards a more principled stage of moral development—where actions reflect universal ethical principles—it must address the ramifications of its operations on workers and communities. Otherwise, the potential for ethical dilemmas and reputational harm may compromise its business model in the future.

In summary, Amazon’s organizational structure and market positioning play significant roles in shaping its arguments against monopoly accusations. Although their claims may hold some merit in promoting competition, the sustainability of their moral behavior merits further scrutiny, particularly as society’s expectations evolve in response to corporate practices.

References

• Benner, K. (2018). "Amazon’s Corporate Culture: An inside look." The New York Times.
• Cline, A. (2022). "Amazon's Market Structure and Competition." Investopedia.
• Kohlberg, L. (1981). "The Philosophy of Moral Development." Harper & Row.
• McCarthy, J. (2020). "How Amazon Became a Monopoly." Business Insider.
• O'Reilly, L. D. (2021). "The Impact of Amazon on Small Businesses." Forbes.
• Pettey, C. (2020). "Understanding Amazon's Business Model." Gartner.
• Pine, J. (2019). "Amazon’s Role in E-Commerce Competition." Journal of Business Research.
• Riley, C. (2021). "The Future of Amazon: Competition or Monopoly?" CNN Business.
• Smith, R. (2019). "Corporate Ethics and the Role of Sustainability." Harvard Business Review.
• Sullivan, K. (2022). "Amazon and the Definition of Monopoly." National Public Radio.