Apply the Industrial Organization Model and the Resource-Based Model to Determine How Amazon Company Could Earn Above-Average Returns
Probably today there is no product that Amazon.com doesn’t sell. Amazon.com has developed different internet portal sites for different countries such as Canada, UK, Germany, France, China and Japan.
Companies sometimes want to harness their core capacities and capabilities in a way that not only sees the use of the resources but also in ways that are profitable and innovative. Product and customer differentiation are strength to the company. The current trend of Amazon makes it difficult to classify its business model. Instead it seems to be combining different models and no single one is sufficient to entirely sustain competitive advantage. It could also be said that it has created a new business model. This new business model uses the synergy of various benefits to create value for the customers. Some of these benefits are: shopping convenience, speed, discounted pricing, ease of purchase, wide selection, reliability of order fulfillment and lots of information that enable decision making (Campbell & Collins 2010). In its operational strategy, Amazon has managed to enhance its competitive strategy through cost leadership, customer differentiation and focus strategies. Rather than talk of core business, Amazon would rather talk of core capabilities and world class core assets. It is seen to make calculated moves in transforming capacities into profit centers.
This event can only lead to success for Amazon, strengthening their relationship with current college students. A strong relationship with students will make Amazon a more attractive option for college graduates, allowing Amazon to acquire better talent.
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