She should be getting free rides, right?
As the largest online retailer in the world, Amazon proves to be highly competitive, even against giants like Walmart [Read: Through effective implementation of its generic competitive strategy and intensive strategies for growth, Amazon.
The intensive strategies of Amazon. Minimization of operational costs is the objective in this generic competitive strategy.
Considering the nature of e-commerce, the company benefits from process automation, which is generally used in purchase processing, scheduling, and other operational processes.
These benefits enable Amazon. In addition, the cost leadership generic competitive strategy pushes Amazon. 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.
Amazon uses market development as its current primary intensive growth strategy. Entry and growth in new markets is the main objective in this intensive strategy. For example, the company initially provided its online retail services to consumers in the United States. Amazon now operates e-commerce websites in more than 10 countries, including Canada, the United Kingdom, China and India.
Each new country is considered a new market that creates growth opportunities for the firm. A strategic objective related to this intensive growth strategy is for Amazon.
The objective of this intensive strategy is to generate more revenues from the markets where the company currently operates. For example, as consumers develop increasing interest in online retail, the company benefits from higher sales revenues, especially when considering the popularity of the Amazon brand.
Market penetration is responsible for the initial rapid growth of Amazon. Developing and offering new products to gain higher revenues is the goal of this intensive growth strategy. Amazon grows partly by developing new products over time. Growth based on new business is the objective in applying this intensive strategy.
For example, Amazon grew through its acquisition of Audible, which is a producer of audiobooks and related products. In this regard, the company partly uses acquisition to implement this intensive growth strategy. A strategic objective associated with this intensive strategy is to grow the e-commerce business through an aggressive acquisition strategy.
Handbook of Services Marketing and Management, Configurations of governance structure, generic strategy, and firm size.
The generic strategy trap. New evidence in the generic strategy and business performance debate: Copyright by Panmore Institute - All rights reserved.
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