What Is The Competitive Advantage Of Amazon

1314 Words6 Pages
INTRODUCTION Amazon.com’s acquisition of Whole Foods for $13.7 billion evidenced its resoluteness in implementing its pursuit for expansive strategies. There are, however, several opportunities available for its long-term strategic growth. The aim of this paper is to review opportunities for global business expansion beyond its current breath, while utilizing its competitive advantages. PROPOSED LONG-TERM GOALS AND OBJECTIVES Goal and Objective No. 1: Dominate the Product Home Delivery Market. Beyond its reputation as the “most powerful online retailer” around the world, Amazon.com has consumers associate its brand strongly with reliable logistics (Adamson n. p.). It has the logistics network and the experience to dominate the home delivery market in virtually all consumer products. Goal and Objective No. 2: Dominate the Global Electronic Storage and Database Market. The explosion of electronic data moving around the…show more content…
The earlier environmental scan of Amazon.com revealed two important competitive advantages: a highly profitable, low-cost middleman business model, which enabled it to grow its net sales 222.59 percent in five years (2012 – 2016), from $61.09 billion in 2012 to $135.99 billion in 2016 (Amazon 2016 Annual Report 37; Amazon 2013 Annual Report 36); and consistent resoluteness to seize profitable opportunities (Adamson n. p.). The business model enabled the company to achieve a high inventory turnover velocity (HITV), a largely cash-based business (receiving cash before spending for its products and services), an efficient working capital management (EWCM) capability, and an efficient cash capital expenditure management (ECCEM) capability (Adamson n. p.). Meanwhile, current decisiveness in entering the traditional retail industry through its recent purchase of Whole Foods epitomizes its resoluteness at seizing business opportunities as they present (Adamson n.
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