This strategy has resulted in the company reaping the gains from this course of action and has helped its shareholders derive value from the company. Being the worlds leading online retailer, Amazon derives its strengths primarily from a three-pronged strategic thrust on cost leadership, differentiation, and focus.It is often referred to as the online equivalent of Wal-Mart because of its reach and global footprint as well as its aggressive pricing strategies.Īmazon can leverage on several opportunities in the emerging markets and can ensure that its global supply chain of networked warehouses deliver substantial value for itself and its stakeholders.įurther, Amazon has to rethink its business model of operating at close to zero margins and the fact that the company has not returned a decent profit in the last five years gives it much room for improvement. Amazon is the worlds leading online retailer and its success has spurred other physical, brick, and mortar retailers to have an online presence.
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