Business Strategy of Amazon

Topics: Management, Strategic management, Online shopping, Business, Electronic commerce / Pages: 10 (2447 words) / Published: May 13th, 2010

With the advent of the information technology, specifically the internet, it is said that more and more companies are existing in the online world. The changes in the business market also allows customers to change and become more dependent on online stores and online shopping than go and find something in shopping malls or retail store. One of the existing and considered as the largest and competitive online shopping in the world is Amazon. In this report, the goal is to analyse Amazon based on the case study provided. The analysis includes the discussion of Amazon’s s strategic intent, main resources and capabilities. In addition, this will also include analysis of the resources and capabilities that give sustainable competitive advantage and the recommended future strategy for the company.

Overview of Amazon

Amazon has been considered as one of the largest bookstore and online store in the global market. The company has been able to thousands of customers in over 150 nations. Amazon’s main website offers millions of DVDs, music, books and videos not to mention their products from household, electronics, apparel and clothes, cosmetics, drugs and others. Thought the company has highs and lows, they are able to manage the companies and sustain their competitive advantage. The company has also used some strategies to ensure that they will outgrow their competitors like Ebay.

Accordingly, Amazon is a company that truly popularized the context of online shopping by having the largest product supply online. In addition, it is one of the first industries to sell products deep into the long tail by having them all in their numerous warehouse as well as distributing products through their partner companies.

The founder of the company, which is Jeff Bezos, started the company without the assurance of being profitable. Unlike any other websites, Amazon grew in a slow manner and had their

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