Amazon Competitive Advantage

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Recommended: What are the chief elements of Amazon’s overall competitive strategy? How well do the pieces fit together?Is the strategy evolving

Building a Competitive Advantage
Todd Jennings
BUS 599 Strategic Management
January 25, 2015
Dr. William Carthage Morrison JR

Brief History and core business of Amazon.com and Yahoo.com
Jeff Bezos, an entrepreneur, founded Amazon in 1994, in Washington where he first operated the business from a garage. Bezos received additional capital from Tom Alburg, and Nick Hanauer, which enabled him to come up with a better website that users could easily move through, or navigate. The company began as an online book retailer.
Amazon has now grown to provide the biggest selection of CDs, Videos, books, DVDs, home furnishing, and almost anything one could want. The company went public in 1997 when it continued its increase its product lines …show more content…

Amazon has created different websites for different companies such as for Germany, United Kingdom, Canada, Japan, China, and France. However, the stock prices for Amazon products and services have declined in the recent years from approximately 105 US dollars to 53 dollars a decade ago. Today, Amazon Company has grown and now sells almost anything, and it currently has yearly revenue of more than 20 billion dollars (Jones, 2012).
The company’s vision is” To be world’s most customer oriented company, to create a platform where individuals can visit to find, get anything they desire and purchase it …show more content…

Amazon used this strategy since its start up in order to attract a huge mass. Promotional strategy involves an agreement between two or more firms together with a long-term relationship. These allies connect their users to Yahoo’s websites, which helps promote its product (Johnson, 2010). The alliance in most cases benefits the both companies and gives them a competitive advantage over the other firms in terms of cost. Such kind of strategy occurred between Yahoo and Amazon where Yahoo provides direct connections to Amazon’s book titles from any yahoo search result. Yahoo users were invited to view and purchase books related to what they were searching on the web. Diversification strategy- Diversification of its product from CD/DVD to book markets has enabled the company to serve many customers from different market segments thus the company continues to expand via new customer bases (Jones, 2012).
Yahoo and Amazon strategic planning and distinctive

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