Cost Leadership Strategy Of Amazon

1160 Words 5 Pages
• Amazon’s businesses is very competitive and fast developing, with the barrage of competitors in diverse industries, consisting of retail, digital content and electronic devices, e-commerce services, and web and infrastructure computing services. Amazon’s current and potential competitors have more resources, extensive histories, more customers, and/or greater brand recognition. They possibly secure better terms from wholesalers, implement more hostile pricing, and dedicate more resources to technology, marketing, fulfilment, and infrastructure Competition may increase as Amazon’s competitors enter into business arrangements or associations and established companies in other market sectors increase to become competitive. Also, new and improved technologies, including search, digital content and electronic devices, web and infrastructure computing services, may increase competition. The Internet quickens competitive entry and comparison shopping, and this increased competition will likely decrease Amazon’s sales and profits.

• Amazon Supplier relationships subject it to a number of risks. Amazon has major suppliers, comprising licensors, and limited or single-sources of supply, that are important to their sourcing, services, manufacturing, and any related on-going servicing of stock and content. Amazon
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By following the mixture of these two strategies Amazon can achieve the targets and the success in the competitive market. Differentiation is necessary in the products so that consumers can make a better decision on which products they have to purchase so that company can attain the leading

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