Porters 5 Forces Question regarding Whole Foods and Amazon "Of Porter’s three types of strategic positions...

Porters 5 Forces Question regarding Whole Foods and Amazon

"Of Porter’s three types of strategic positions (not to be confused with “three generic strategies”) which do you believe would best serve Whole Foods/Amazon? Why? "

Expert Solution

Amazon:

The porters three generic strategies are:

1. Cost leadership:

2. Differentiation strategy;

3. Focus strategy;

Amazon uses cost leadership strategy to gain competitive advantage. Minimization of operational costs is the main goal of this competitive strategy. Amazon’s cost leadership generic strategy is to develop e-commerce competitive advantage through the flow of increasing of information technology infrastructure, the company also has the strategic goal of investing much in research and development (R&D) to optimize the performance of its IT resources, the cost leadership generic competitive strategy moves Amazo to minimize its price values. This strategic objective impacts Amazon’s marketing mix. The low prices are significant in attracting consumers. Thus, through the generic strategy of cost leadership, competitive advantage is gained to support the fulfillment of Amazon in the online global growth.

keosha answered 11 months ago

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