The Amazon of Innovation
4. Based on the facts presented to this case, what do you think is
amazon.com’s competitive strategy? Justify your answer
Amazon’s competitive strategy is cost leadership across the online retail industry.
Through operating on very thin margins Amazon is able to sell products at a discount.
This coupled with the fact that in season they sell as much as 36.8 million items in a
day, and that they don’t have physical stores gives Amazon scales. With the large
volume Amazon has a enormous supporting infrastructure, which they parlayed into a
cloud services business. This infrastructure also allows Amazon to use its warehouse
outside of peak season to provide order fulfillment. Amazon’s immense online retail
business is a cost leader do in part to the fact that the firm uses is vast infrastructure to
provide order fulfillment as well as cloud services.
5. Jeff Bezos, CEO of amazon.com, has stated that the best customer support
is none. What does that mean?
When Jeff Bezos states that the best customer support is none he means that the
service has worked. We know from the chapter that in the business process customer
