Question

What is Amazon’s core competency? How is Amazon using its core competency in its diversification efforts? Amazon continues to spend billions on seemingly unrelated diversification efforts. Do you believe these efforts contribute to Amazon gaining and sustaining a competitive advantage? Why or why not? This is a question from an Amazon case study in Strategic management book 4th edition by Frank T Rothermel. Describe the answer in a min of 1200-1500 words with clear side headings. Please read the case before you answer it.

Answer 1

I think supply chain management is their core competency which includes customer relationships management. Supplier relationships management. Internal supply chain management and of course technology

E-Commerce large Amazon is one among the foremost players within the on-line business sphere and since being supported within the Nineties has reshaped the manner customers and retailers act with one another.

1.

The new business platform

Amazon marketplace, the vendors UN agency sell through Amazon, providing a replacement thanks to scale business they bring about worth to any or all parties

2.

The consumer expertise

Because Amazon was commercialism a shopping for expertise, it did not matter what they oversubscribed. From books to field chairs, Amazon created an identical user expertise that was, and still is, the simplest http://online.Amazon.com innovated new ways in which to enhance the shopping for expertise and has shown no signs of speed down: ratings, reviews, one-click shopping for, instructed things, etc.

3.

Leveraging the technology

Amazon is in a position to leverage technology’s each facet to its advantage that it helped the net market place to not solely reach the head of technical experience however conjointly within the method creating the method electric sander and economical, Their innovations diode to Associate in Nursing economical offer chain institution that successively facilitate them scale back inventory therefore minimising risk and increasing capital gains.

Amazon attempting to diversify its business at a relentless pace may be a well-known on-line searching company in US. It offers wide selection of product to several its customers, and even quicker distribution. Associate in Nursing initiative that Amazon has undertaken is to supply school books and study materials to the scholars in US. Amazon has opened centralized stores of books for the scholars from wherever they will collect their ordered books.

Amazon continues is payment billions on on the face of it unrelated diversification efforts. this kind of diversification is risk for the business because the client pulse towards the new product and services might not be property to it of the present product and services. The competition from the present firm within the market might ruin the strategy being performed.

Amazon by having a conducting trial on the market trend for the new product and its services can cause gain and sustain the competitive advantage. this is often as a result of any company some or alternative time reaches the maturity stage, and at now it has to pioneer its product providing. Similarly, Amazon diversifying into books class by providing books to the faculty students can permit the corporate to sustain the net searching business, and gain competitive advantage over alternative players within the trade.