Thursday, March 4, 2010

Amazon's Business Level Strategy

I think Amazon has created a unique business level strategy that has had everything to do with their success. This strategy has led them away from being a traditional brick and mortar store such as Walmart, and led them in the direction of becoming the Walmart of the internet. Their strategy has taken advantage of the ease and constant availability of the internet and online shopping in order to become a successful business. This strategy has enabled them to not have the traditional costs that large retailers face such as construction and maintenance of stores, and at the same time, has allowed them access to every person with an internet connection. Since Amazon allows other sellers to advertise and sell products on their website for a fee, the company has capitalized on an opportunity to make money off of goods they never physically posses. This strategy allows for greater efficiency in selling goods by not having goods sitting in a warehouse waiting to be sent out. Individual sellers instead bare the responsibility of storing and shipping goods. It is obvious to me that Amazon has been using this business-level strategy to constantly innovate and be a leader in the internet retail industry.

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