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Competitive Strategy of Amazon - Desklib

   

Added on  2020-03-04

8 Pages1439 Words56 Views
Business Development
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Running head: COMPETITIVE ADVANTAGE 0Competitive Strategy
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COMPETITIVE ADVANTAGE1ContentsAmazon.com..............................................................................................................................2Uber............................................................................................................................................4References..................................................................................................................................6
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COMPETITIVE ADVANTAGE2Amazon.comAmazon was incorporated in 1994 as an American e-commerce company, by Jeff Bezos. It is the largest online retailer in the world according to its sales and capital. The company earned an income of US$135.98 billion in the financial year of 2016 and on its peak days it sold more than 306 items in one second. The motive of selecting Amazon for this report is because the company has beat all of his completion in the market and become world’s largest online retailer with a high level of customer satisfaction.Amazon operates in online shopping and cloud computing industry. Along with their online retailing, the company provides several other internet-based services to its customers as well. Other services of Amazon include Amazon Prime, online book store, studio movie, app store,cloud drive and web services. Amazon keeps innovating their products and services according to their customer's requirements. The recent project of Amazon is “Alexa”, an artificial intelligence system that could connect to mobile, house or other electronic devices (Teece 2010). According to Mangalindan (2012), Amazon key strategy focused on cost leadership, as compared to other off-line retailers. The company’s enormous warehousing services and processing abilities, providing them cost advantages. The company is also focused on customer satisfaction and Bezos has implemented the consumer focus structure throughout the enterprise. The company uses these facilities to provide competitive pricing to its customers and other facilities such as one-day delivery, easy return, fast purchase process, and customer support. According to Forbes, Amazon is one of the world’s top three most innovative companies, with a market cap of US$427 billion and this strategy will help them sustain their growth in the future.Amazon’s business model focuses on enhancing growth by adopting a lower cost structure, asdiscussed by Bucherer (2011). The company provides lower cost products with high-quality services. Following is the criteria of Amazon’s business model:In order for achieving growth, the company focused on creating a lower cost structurein their operations. The enormous warehousing facilities and online operations help the organisation in maintain low cost throughout their operations.
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