Identify Amazon’s Primary Business and Business Strategy

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why you believe they are using the business and international strategies you identified

As stated in the first section, Amazon uses a cost-leadership strategy (in both the United States and internationally). I believe that Amazon works to provide the lowest prices, which ultimately equates to the highest revenues. Its strategy to acquire small businesses, also stated in the first paragraph, helps strengthen the distinctive competencies of Amazon, such as their SOA software company. By buying these small retail companies, Amazon is able to continue to find new opportunities and decrease competition. Amazon’s strategy to Amazon uses their international strategy to help expand their market, which ultimately lowers their cost structures. Bezos believes that Amazon is a technology company, and the core competencies of Amazon drive its mission.

Explain whether Amazon using related or unrelated diversification and how are they are creating value through diversification

Unrelated diversification is the manufacturing of many diverse products that have no relation to each other. Amazon is the perfect example of this. Amazon creates value by in being a retail supercenter where customers can find whatever they want at the lowest prices. In the case study, it states that Amazon is pursuing related diversification “by giving customers more and more reasons to visit its site, and hoped to drive business and sales across all its product categories, using its 1- Click system to make the transactions as easy as possible for consumers.”

Works Cited

Nielson, J. (2013, October 21). The Two Business Strategies: Cost Leadership and Benefit Leadership [And Where Michael Porter Missed The Mark]. Retrieved March 31, 2014, from The Innovative Manager: http://www.theinnovativemanager.com/the-two-business-strategies-cost-leadership-and-benefit-leadership-and-where-michael-porter-missed-the-mark/