Competitive Advantages Analysis: Amazon

Business Capstone Project
Competitive Advantages
Analysis: Amazon

Introduction
• Gaining competitive advantage in present business
scenario is tough.
• Changing demand of customers and access to the
internet enhanced the scope of business opportunities
• This has also increased competition as new companies
are entering the markets
• Amazon.com and its Competitive Advantages in the
online retail market

Company overview
• Amazon.com, Inc., an American
multinational company.
• Focuses on: Artificial intelligence,
Digital streaming, cloud
computing and e-commerce
• Headquarters- Seattle,
Washington
• Founded on 5th July, 1994
• Founder: Jeff Bezos
(aboutamazon.com (2019)

Company overview (continued)
• The company business has shockingly flourished over past few years
• The journey begins with selling goods on online platform
• Soon began the major force in the ecommerce retail market
• Started as Online bookstore and expanded afterwards to other product
lines
• Enjoying the status of world’s number one online retailer in present time

Products and services
• Retail: Books, Consumer electronics, office and computer, automotive and
tools, household and food, home improvement, video games and toys,
fitness and sports, jewellery and clothing, baby and kid products, Kindle
• Non-retail: Referrals and AWS or Amazon Web series (aboutamazon.com,
2019)

Internal environment analysis
VRIO analysis
The VRIO analysis of Amazon explains how the company is doing in its
business and retaining its position in competitive markets
Valuable resources
• The company is growing its diversity in online services
• The brick-and-mortar presence of the company is continuously growing
• Most important part is the delivery network of the company. This
company has international, regional and domestic partnerships in
delivery network (Brown 2016).
• Increasing warehouse and distribution hubs
• Brand equity is increasing every year over the world

Rarity
• The company has been successful to establish its
uniqueness in the online retail market.
• Delivery network that this company work with has rare
success rate
• The recruitment process of his company has rare
features
• Fulfilment centres
• Huge product range
• Unique partnerships instrumental in building reputation

Inimitable
• Amazon has a brand equity
globally that is remarkable
• It works on high market
capitalisations
• The AI technology that the
company uses in its delivery
and operations are beyond
any organisations reach
• High brand equity attracts the
current customers globally