Amazon

Amazon.com is a company that sells all kinds of books and most recently music through their website at discounted prices. It was founded by Jeff Bezos and began taking orders in July of 1995(Derie). Since then, Amazon has acquired five businesses that range from virtual database technology to videos while expanding to the European market. Its massive amount of sales can be attributed to its low competitive prices and ease of shopping conveniently from home.

The business level of Amazon.com is cost leadership. Best selling books are sold at a 30 to 40 percent discount and other books are discounted at 10 percent (Bade).

Amazon.com’s corporate strategy was in the form of single business to dominant all of business, but has since moved towards unrelated because they are offering more than just books at their website, ranging any where from kitchen and house ware to toys and games, DVDs, and herbal supplements.

Amazon.com has increase in size since it began operations in July 1995, doubling in size every 2.4 months with an 838 percent increase in sales form 1996 to 1997. To keep up with this extraordinary growth, Amazon had 800 employees on its payroll as of August 1998(Bade).

Amazon.com being a company who distributes products through the web, the capabilities is endless. For Amazon, these capabilities include being able to produce easy to use websites, e-commerce products, electronic mailing services that are superior to those in existence, and other items that utilize the advanced knowledge of electronic engineers who work for the company. In order to obtain a sustainable competitive advantage they must continue to use and expand on their core advantages and find new ways to implement changing trends and updated networks.

Another threat for Amazon.com is the fact that through the four years they have been in business they have yet to turn a profit or even come close to turning a profit which has led them into debt with no signs of gaining a profit in the near...