Question

In: Finance

Amazon Inc. 1) Determine what generic strategy your company seems to be following, and determine whether...

Amazon Inc.

1) Determine what generic strategy your company seems to be following, and determine whether the company should stay pat or switch to another generic strategy. (Be specific).

2) Suggest opportunities for diversification. (Be specific & be persuasive)  

3) Suggest a strategic alliance for your company (Be Specific & be persuasive).

Solutions

Expert Solution

1) The generic strategy which Amazon is following is overall cost leadership as it offers a vast array of products and that too at very competitive prices. Thus through this strategy it is able to drive it's competitive advantage. It should stay put and not switch to any other option since the company has been remarkably successful using this and consumers have responded favorably to this strategy.

2) The opportunities for diversification includes foraying into hyper local products such as supplying locally grown and sourced vegetables. Also it can enter fulfillment operations for organically grown produce and also leverage network for fulfillment of other e-commerce players.

This would increase market presence and size of the business as well.

3) A specific strategic alliance may be with an offline retail player to have an Omni channel presence. This would help in leveraging strengths of each channel and increase efficiency for the overall entity.


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