Question

1. Research Amazon. How has this firm been able to combine overall cost leadership and differentiation strategies?
2. What were some of the largest mergers and acquisitions over the past two years? What was the rationale for these actions? Do you think they will be successful? Explain.

Answer 1

Amazon is an American based online retail company, which is a leading retail company in the world currently. Amazon has developed so much in the last few years with proper utilization of the strategies and management. Amazon has successfully combined the overall cost leadership and differentiation strategies, which helps the company take a competitive advantage over its competitors. It reduces the operational cost, and with the help of its websites and applications, the company can easily connect with their customers. Effective use of technology and human power helps the company grow and achieve its organizational objectives effectively and efficiently. Some of the largest mergers with Amazon were Tapzo with an Indian company, and Canvas technology, an American company. Merging with these largest companies helps the company to grow faster in different fields. With Tapzo, the company started Amazon Pay in India, in which people can do their business transactions. With Canvas technology, the company started Amazon Robotics, which manufacturers mobile systems. It will be very successful, as the company has a goodwill in front of their customers, which helps the company enjoy most of the customers. The company always prioritize their customers over anything else, which makes the company different and successful.