By allowing third parties to make products available through Amazon, the firm strengthens network effects for competitive advantage.

Question

Quizplus · Accepted Answer

By allowing third parties to sell products on its platform, Amazon increases the variety and quantity of goods available, making the platform more attractive to customers. This, in turn, attracts more sellers, creating a positive feedback loop that strengthens Amazon's competitive advantage through enhanced network effects.

By Allowing Third Parties to Make Products Available Through Amazon