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Amazon is one of those companies that were launched prior to the so called internet bubble and it has been able to maintain its position till today. The brand name of the company is the biggest asset the company has got…
This means that the company has successfully attracted the future clientele for itself. The young generation will continue using the online retailer throughout its life because they have had a good experience with the company. This is one of the greatest assets of Amazon.The company is also following cost leadership strategy with great success. The shift in the policy came after 2001 as it was the time when company decided that it has gained enough clientele to follow a cost leadership strategy. This strategy is working and it is expected to work in future as well. This is because in future more online retailers will come and competition for Amazon is increasing. The future competitors will come up with new innovations but the only way through which the new competitors can be fought is through cost cuttings. Any new competitor will not be able to compete with Amazon in future if the company offers excellent services at lowest price. Amazon is also currently trying to pursue a long term strategy and this is a good approach. The company should not focus on short term profits rather it should capitalize its brand name in a better way. The company is still in the growth phase therefore it should follow a growth oriented strategy. The lower profits in the short run can be accepted in favour of long term growth. ...
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