Only if they're being vigilant. Usually the threats to a company's business model come from places they don't expect, so by the time they feel squeezed it's already too late. Consider the examples of RIM and Microsoft.

> 2.) Given purchasing power scale and people like fast delivery there will only be a handful of companies that can complete with Amazon ever, so it seems unlikely there will be a 'started in the garage' business compete with them now the market is maturing.

Again, consider RIM and Microsoft. Apple + Google gobbled up much of their core markets. RIM just withered and Microsoft had to completely redo its business strategy. They're not the Borg anymore as a result.

Amazon's big gains come from taking advantage of low-hanging fruit in technology. It's something most other retailers just didn't have the internal expertise to do. But the Wally Worlds and Targets of the world can catch up eventually. The first mover advantage only lasts for so long.

At this point, the main thing that makes me go to Amazon is one-click ordering. But if things like Apple or Android Pay take off, that would kill much of the advantage Amazon has over other small retailers. I already don't really care for my Prime membership anymore.

And there is always the possibility that our government wises up and starts enforcing anti-trust la. . .no never mind. That's just ridiculous.