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Amazon’s Competitive Advantage, Research Paper Example

Pages: 1

Words: 358

Research Paper

Technique Analysis

The efficiency and effectiveness of the business-level strategy employed is important. As such, there is need for constant analysis of the technique employed by the business. The business can be analyzed from one of four techniques that it can employ to increase its presence in the market.

The business has currently built its operations on a best-cost strategy. This ensures that the company has a broad consumer by offering the lowest possible prices and unique features. This allows the company to sustain its increasing scope of operations while maintaining its competitiveness within the market(Stroh, 2014). This has helped Amazon.com build its name around its pricing. Amazon usually offers a competitive price compared to competitors eBay. This business-level strategy necessitates the use of a considerable amount of resources on advertisement and marketing.

Alternative Strategy Generation

The SWOT analysis is an important tool that helps assess the current situation for any given business. However, there is need for the maximization of the information generated from the SWOT analysis do as to generate alternative strategies for the company.

A salient example would be the use of the TOWS matrix to help facilitate translation and application of information generated from the SWOT matrix. The TOWS (Threats, Opportunities, Weaknesses and Strength) matrix is a variant of the SWOT matrix. This matrix outs emphasis on the external environment, whereas the SWOT matrix puts emphasis on the internal environment. While the company has adopted a best-cost strategy, constant analysis may indicate which business level-strategy is effective, relative to market forces. All four strategies have advantages as well as disadvantages, which are significant relative to market conditions.

Another alternative strategy would be the application of Porter’s 5 Forces Model. This strategy emphasizes on the eternal environment of the business by analyzing and predicting trends so as to adjust accordingly. This is a reactive kind of strategy where the changes and improvements are made as a result of market behavior.

References

Campbell, D., Edgar, D., & Stonehouse, G. (2011). Business strategy : an introduction. Basingstoke: Palgrave Macmillan.

Stroh, P. J. (2014). Business Strategy Plan, Execute, Win! Hoboken: John Wiley & Sons.

Werbach, A. (2009). Strategy for Sustainability : A Business Manifesto. Boston: Harvard Business Press.

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