Competitive Advantage of Amazon through VRIO - Business Management

Running head: BUSINESS MANAGEMENT
BUSINESS MANAGEMENT
Name of the student
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1BUSINESS MANAGEMENT
Table of Contents
1. Background to Amazon...............................................................................................................2
2. Competitive advantage of the organization through VRIO.........................................................2
3. Core competency matrix..............................................................................................................4
4. Current Corporate level strategy of the organization..................................................................5
5. Identification of issues through external and internal environments of the organization............5
5.1 SWOT analysis......................................................................................................................5
5.2 PESTEL analysis...................................................................................................................6
5.3 Issues that are faced by the organization...............................................................................7
6. Strategic recommendations..........................................................................................................7
7. Conclusion...................................................................................................................................8
References........................................................................................................................................9

2BUSINESS MANAGEMENT
1. Background to Amazon
Amazon is an American e- commerce and cloud computing organization, which was
founded by Jeff Bezos in the year 1994. The strategic growth of the organization depended on
the long term vision of the investors. Product diversification and the growth of the customer
base of the organization helped in enhancing the sustainable expansion of the business in
different economies. The quick development of the organization depended on the dedicated
innovation in the line of cloud infrastructure services through the creation of AWS (Amazon
Web Services) (Amazon.com., 2018). On the other hand, the wide range of commodities that are
provided by the organization has helped in supporting the growth process of the same while
operating in diverse international markets.
2. Competitive advantage of the organization through VRIO
Capabilities of
the
organization
Valuable Rare Inimitable Exploited Implications
Brand image Yes Yes Yes Yes Competitive
advantage
Diversificatio
n of the
products
Yes Yes No Yes Temporary
advantage
Vertical
integration
Yes Yes No Yes Temporary
advantage