Products&services: Product Lines Available at Its Website Include Several Media Books

1.
Strategy
Amazon began by concentrating on business-to- consumer relationships between itself and its
consumers and business-to- business relationships between itself and its suppliers, and then
shifted to promote customer-to-customer ties through the Amazon marketplace, which serves
as an intermediary to facilitate transactions.
Products&services: product lines available at its website include several media books,
DVDs, music CDs, videotapes and software, apparel, baby products, consumer
electronics, beauty products, gourmet food, groceries, health and personal-care items,
industrial & scientific supplies, kitchen items, jewelry, watches, lawn and garden items,
musical instruments, sporting goods, tools, automotive items and toys & games.
Amazon.com has a number of products and services available, including:
 AmazonFresh
 Amazon Prime
 Amazon Web Services
 Alexa
 Appstore
 Amazon Drive
 Echo
 Kindle
 Fire tablets
 Fire TV
 Video
 Kindle Store
 Music
 Music Unlimited
 Amazon Digital Game Store
 Amazon Studios
 AmazonWireless
Market/customers:It account for 13.7 percent of worldwide retail e-commerce sales .

In 2018, Amazon’s share of the US ecommerce market hit 49%. That’s 5% of all retail spent
across the entire country. Needless to say, Amazon is the leader in online sales, with no sign
of slowing down anytime soon.
Competitive advantage: Amazon's approach is driven by its sources of competitive

advantage, concentrating on technology, improving the advantages of economies of scale,
and exploiting the synergies between its external drivers and internal resources have become
the cornerstones of its business model. Amazon also uses Big Data Analytics as a tool to map
consumer behavior.
The strategy process
The flywheel effect
Lower prices have contributed to more consumer visits. More customers boosted sales
volume and attracted more commission-paying third-party vendors to the platform. This
allowed Amazon to get more out of the fixed costs, such as the fulfillment centers and the
servers needed to run the website. This improved productivity made it possible to further
lower prices. Feed some aspect of this flywheel, they reasoned, and the loop should be
accelerated.
Strategic Mangement
Amazon.com operates using a Hybrid Business Strategy which combines two of the
above three strategies of the Generic strategic option depending on the Business sectors it is
operating within.
Amazon.com is proud to be one of the world's leading providers of quality products

through good service. Good service in the case of Amazon is a competitive advantage for the
sale of products. Amazon.com has developed a strategy of four pillars to guide and reach
Bezos' vision. These pillars are the selection of a wide range of retail products; a price that is
consistent and continuously delivers products without sacrifice to quality with guaranteed on-
time delivery; Convenience, for example , giving consumers reviews and input forms on all
and finally; technical skills in terms of customer choice logistics, creativity in the e-reader
and tablet market, AWS (Amazon Web Services) including cloud storage and digital content,
such as Amazon MP3 Music Store.
Evolution of strategy approach

Amazon’s strategy is clear and efficient, they have eqaualed succes in the past and
will in the future.
Jeff Bezos used innovation and continuous growth as the key strategies of his
company, which he accomplished through continuous technological development and
expansion in the form of acquisitions and joint ventures. Jeff Bezos is quite successful in
implementing the strategies at right time as the timing of a strategy is vital, if one is to get in
before a rival aiming for a market advantage with a similar idea.
Competitive advantage
Amazon competitive advantage based on the „clock strategy” is position at 3, having a

hybrid competitive advantage. The company's primary competitive advantages are the low
prices that it is able to offer, a wide variety of products on offer ranging from digital media to
grocery, and convenience of shopping from home or mobile devices with a "same day
delivery" option. It also has a cost edge over brick and mortar retailers, since it does not have
to manage physical stores.
As the name implies, a hybrid position involves some element of low price (relative to
the competition), but also some product differentiation. The aim is to persuade consumers
that there is good added value through the combination of a reasonable price and acceptable
product differentiation.
Sustaining the competitive advantage
The sustainable competitive advantage lies in deliberately

choosing a different set of activities from your competitor to
deliver a unique mix of value — Michael Porter.
1. Becoming the first entrant in any new product/service category. Amazon created a
new category that differentiates the company from the rest of the market.
2. In 1994, Jeff Bezos, intrigued by an annual growth rate of 2300 per cent on the
Internet, began to think about building a real 'everything store' online. But he knew
that, at least in the beginning, such an undertaking would be seen as impractical. So,
in order to place his service in people's minds, he had to focus on the niche and decide
to go with the books. He choose books due to the fact that Books was a $10 billion
industry in the United States in the year 1994. A considerable percentage of people
had already been buying books through mail order or postal services — so there
existed a potential customer base with a need for convenience.
3. Amazon's value proposition was to provide consumers with greater value through a
combination of unparalleled ease, quick access and detailed choice. These differences
would have been sufficient to build a competitive advantage, but Jeff had a different
idea. He decided that his main value proposition (UVP) would be 'low price.' Amazon
will offer both value and low price. In these way, Amazon differencetaed by offering
lower prices.
4. Then, there was offered an unique experience for the customers: a easy way to return
(policy of 30 days), users review, which is now a authenticity of Amazon’s ‘user-
generated content’, and a customer personalisation.
5. In 1998 Amazon invented the real „everything store”, in this way, Amazon could use
its existing value network profitably to meet the needs of the customers in the new
categories that started to be part of the company products.
6. In the first half of the 2000s, Amazon experienced rapid growth. The larger the scale,
the more complex the warehousing and distribution system became.
7. Then, Amazon marketplace, building a platform where small retailers could sell their
products to Amazon’s customers. This platform was based on a selection method and
by using the lowest price.
8. 2000- Amazon announces free shipping. According to some surveys (Article in
Inc.com by Peter Roesler), more than 70% of online consumers are more likely to
shop on a site if it offers free shipping and returns.
9. In 2004 Amazon Prime appeared. The service turned customers into Amazon addicts
as they wanted their goods to be shipped to them without delay. Prime manipulated
human desire to maximize the benefits of any project, even at the expense of extra
effort, time and resources (The Endowment Effect).
10. Network effect- The perceived value of Amazon's service has increased, leading more
non-consumers to try out the company. This further helped create trust among
existing consumers. As Amazon attracted more buyers, several third-party vendors
were able to sell their products via it. As third-party vendors expanded, the range of
goods and their availability increased. As the variations of the drug swell, more
people jumped on the bandwagon to use Amazon. The more users, the more info, the
better user experience, and more advice. Network Effects also discourages potential
competitors.
It is noted that all of Amazon's operations are well organized and mutually beneficial. This
makes it impossible for competitors to pick up only a few pieces to build up their companies and
to invest in a program close to what Amazon has is not a viable choice. Even if they could match
Amazon's shipping ability and distribution system, it would be difficult to establish and develop
'Network Impact.' Amazon has slowly and gradually led the way, knocking down competitors
along the way, making it impossible for others to pursue its giant leaps. Amazon used a global
strategy, exploiting the economies of scale and the value adding activities.

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1.

Amazon.com has a number of products and services available, including:

Market/customers:It account for 13.7 percent of worldwide retail e-commerce sales .

Competitive advantage: Amazon's approach is driven by its sources of competitive

The flywheel effect

Amazon.com is proud to be one of the world's leading providers of quality products

Evolution of strategy approach

Amazon competitive advantage based on the „clock strategy” is position at 3, having a

Sustaining the competitive advantage

The sustainable competitive advantage lies in deliberately

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