11.0 The strategic position of the organisation
Level 1- Generic strategy
Amazon generic strategy for competitive advantage is differenciation. As an example, Amazon is the only e-commerce company which does not outsource its fulfilment and distribution. It is in fact working to expand its distribution and logistics so as to cater the needs of more customers especially those prime member. With its own fleet of cargo jets, delivery trucks and others, Amazon can offer its prime members same-day delivery. However, by insourcing its fulfilment and distribution, it is actually incurring a very high expense which directly contribute towards its low profitability. Besides, Amazon also have another competitive advantage over its rivals in that it is practically a company which has everything linked up together. In other words, Amazon produces and sell a wide range of products ranging from e-books to fashion and apparel, Amazon (Echo) Alexa, music, video-on-demand and most importantly, the Kindle. With a wide product range, customers are keener to become their prime members as such …show more content…
This is because Amazon earns income from the different places such as Amazon marketplace, Amazon Web Service and Amazon Prime. For strategy alliance and joint venture of Amazon can be good strategy position is because it can reduce investment cost while also can be bad strategy position is because sometimes Amazon cannot control their partner. For R&D of Amazon can be good strategy position is because Amazon has marketing development support and do a lot of things to support differentiation. The international strategy of Amazon is used entering new foreign markets to expand the current geographical business units. In 2014, the total international net sales of Amazon is $33.5 billion, accounting for nearly 40% of total sales last year. Amazon's Global Selling program make Amazon become an attractive international
Level 1- Generic strategy
Amazon generic strategy for competitive advantage is differenciation. As an example, Amazon is the only e-commerce company which does not outsource its fulfilment and distribution. It is in fact working to expand its distribution and logistics so as to cater the needs of more customers especially those prime member. With its own fleet of cargo jets, delivery trucks and others, Amazon can offer its prime members same-day delivery. However, by insourcing its fulfilment and distribution, it is actually incurring a very high expense which directly contribute towards its low profitability. Besides, Amazon also have another competitive advantage over its rivals in that it is practically a company which has everything linked up together. In other words, Amazon produces and sell a wide range of products ranging from e-books to fashion and apparel, Amazon (Echo) Alexa, music, video-on-demand and most importantly, the Kindle. With a wide product range, customers are keener to become their prime members as such …show more content…
This is because Amazon earns income from the different places such as Amazon marketplace, Amazon Web Service and Amazon Prime. For strategy alliance and joint venture of Amazon can be good strategy position is because it can reduce investment cost while also can be bad strategy position is because sometimes Amazon cannot control their partner. For R&D of Amazon can be good strategy position is because Amazon has marketing development support and do a lot of things to support differentiation. The international strategy of Amazon is used entering new foreign markets to expand the current geographical business units. In 2014, the total international net sales of Amazon is $33.5 billion, accounting for nearly 40% of total sales last year. Amazon's Global Selling program make Amazon become an attractive international