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Identification and Evaluation of Strategic Activities Effective for Amazon’s Competitive Advantage Abstract Strategic actions are carried out by a company to achieve its long-term goals and objectives. Adequate packaging is entailed for the growth of e-commerce as it not only safeguards products but also plays a vital role in branding, differentiation, customer satisfaction and environmental sustainability. Chapter 2: Literature Review 2.1 Introduction 100 A literature review is a comprehensive evaluation and summary of existing published research on the topic of study. This chapter will find the strategies that have allowed the companies to grow and dominate the online retail industry. Consumers are more aware of sustainable practices like packing in the e-commerce industry (James & Kurian, 2021). Developing this type of practice can give a competitive advantage in this sector. The primary approach involves continuously developing and incorporating novel methodologies and advancements like deep machine learning to enhance customer satisfaction and streamline processes. This chapter consists of several themes, which are based on the objectives of the study. This will also discuss the gap of previous studies of the researchers. 2.2 Concept of Strategic Activities in Organisation 150 Strategic activities in an organisation refer to the intentional and planned actions taken by the company in alignment with its long-term goals and objectives ( Fuertes et al.,

2020) . These tasks aim to establish a distinct edge and propel the organisation towards prosperity. This task involves examining current patterns in the market, recognising potential advantages and obstacles and devising tactics to effectively address them. As per Ziółkowska , ( 2021) , some common tasks that fall under strategic activities include conducting market analysis, creating new products, establishing a brand and implementing marketing campaigns and preparing financial plans. Implementing strategic action can allow businesses to address their area of vulnerability, utilise their areas of advantage and enhance their overall effectiveness, leading to lasting expansion and success. Amazon’s primary strategy is continually pushing unmet customer needs and adjusting products and services to meet those needs, resulting in a customer-centric business model. This involves allocating resources towards developing new and improved products, adopting advanced technologies to enhance the customer experience and improving the efficiency and effectiveness of fulfilment processes to keep customers satisfied. 2.3 Concept of Competitive Advantage 250 Competitive advantage is the unique set of attributes or capabilities that a company has which allows it to outperform its competitors in a particular market. This can comprise of elements such as advanced technology, availability of resources, strong brand image or cost-effectiveness. Companies that have a competitive advantage are able to differentiate themselves in the market and draw in a large customer base, resulting in higher revenues and profits( Varadarajan, 2020 ). By constantly utilising their strengths and assets, organisations can sustain their market position and remain ahead of their rivals. Developing and maintaining a strong competitive advantage is crucial for

achieving ongoing success and expansion in any industry. However, this can be negatively affected by various factors like lack of innovation, high competition and changing consumer preferences. These obstacles can undermine a company's distinguishing features and weaken its position of superiority in the industry, decreasing its ability to outperform its competitors. In the e-commerce retail industry, competitive advantages are often achieved through the use of technology and innovation( Chong & Ali, 2022) . Organisations that can adeptly harness technology to elevate customer satisfaction and streamline operations are better positioned to outshine their competitors. In the e-commerce retail industry, competitive advantage can be achieved through efficient supply chain management, customer service excellence, innovative marketing tactics or technological advancement ( Chen, Liu & Li, 2019 ). These benefits can aid a business in drawing in a large customer base, boosting revenue and sustaining a robust standing in this industry. Amazon’s competitive advantage lies in its vast product selection, efficient fulfilment network and customer-centric approach, which allow it to offer customers seamless and convenient shopping experiences while maintaining low prices. 2.3 Theoretical interpretation 2.3.1 Classical Conditioning Theory 300 Classical conditioning theory focuses on a learning process where neutral stimulation begins to elicit a response after being paired with a stimulus that already elicits that response ( Akpan et al. , 2020) . This is a psychological theory also known as Pavlovian conditioning. The concept of selective attention can be utilised to understand how consumers perceive packaging in the context of online shopping. Shoppers view

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packaging as a crucial element of their online shopping encounters. The packaging plays a vital role in the initial interaction between the purchaser and the item, making it a key element in shaping consumer decision-making. As per classical condition theory, it can be said, that consumers are believed to have gained knowledge and experience that makes them associate certain packaging features with specific qualities and attributes, ultimately shaping their overall perception of the product. In "classical conditioning", an initially neutral stimulus is combined with an unconditioned stimulus to elicit a conditioned response ( Pavlov & Kotchoubey, 2019 ). When considering sustainable packaging in the world of online shopping, the packaging itself is the stimuli. At the same time, the benefits it offers, such as being environment friendly and promoting ethical production, serve as unchangeable triggers for positive reactions. The e-commerce sector can utilise the principle of classical condition to shape consumer attitudes towards sustainable packaging by repeatedly linking the natural element of packaging with the desirable consequences of opting for environmentally friendly packaging options ( Purcărea et al. 2022 ). Repeatedly introducing consumers to these favourable connections can result in the development of a learned reaction. Therefore, “classical conditioning” can effectively influence consumer preference and give a competitive advantage in the e-commerce sector. 2.3.2 Market-based View Theory The “Market-Based View” (MBV) is an approach to understanding the performance of a business or firm based on its external market environment ( Tarihoran et al., 2023) . This concept proposes that a company’s achievements are affected by multiple elements in teh business environment, including market fluctuations, consumer choices and rival

companies. This theory is a widely used approach in strategic management reserch that focuses on understanding a firm’s competitive advantage through the lens of external market conditions. This concept suggests that a company’s prosperity and ability to stand out among competitors is determined by how well it can recognise and exploit advantageous market conditions and meet consumer demands. The MBV theory suggests that Amazon’s competitive advantage results from its adeptness in recognising and adapting to evolving market dynamics. This entails comprehending the wants and tastes of consumers, recognising evolving patterns and industries and efficiently demanding by offering inventive products and services. The MBV theory emphasises gaining a competitive edge( Novianti, 2019 ). Amazon stands out in the fiercely competitive e-commerce market for its extensive resources, including a worldwide distribution network, cutting-edge technology, and sophisticated customer data analysis, allowing it to gain a significant edge over its competitors. The MBV theory highlights the significance of having a strong market position and being customer- centric to succeed in the market. E-commerce companies embrace sustainability, like eco-friendly packaging, and taking calculated risks, coupled with a focus on using data to inform decisions that solidify their edge over competitors ( Wei, Zhou & Cheng, 2023 ). This theory supports the adaptation of environmentally sustainable product packaging practices as a means of creating value for customers. As consumer demand for environmentally friendly packaging increases, Amazon has responded by implementing sustainable packaging initiatives to enhance customer satisfaction and maintain a competitive advantage. This proactive

approach to sustainability not only benefits the environment but also adds value to the company’s bottom line through increasing customer satisfaction and loyalty. 2.3.3 Resource-Based View (RBV) 300 The “Resource-Based View” is a management theory that suggests a firm's competitive advantage is primarily determined by its unique resources and capabilities rather than by the industry in which it operates ( Davis & DeWitt, 2021) . This perspective regards a company's resources as the primary factor determining its achievement, encompassing tangible elements like materials and monetary assets as well as intangible components such as employee expertise, brand recognition and intellectual capital. By identifying resources, e-commerce firms can develop innovative strategies that differentiate them from their competitors and meet the changing needs and demands of the market. One of Amazon's essential resources is its vast global network of warehouses and distribution centres. The company is able to effectively supply goods to consumers, giving them an advantage in terms of timely and easy access by implementing this strategy. On the other hand, Amazon’s strong brand reputation, large customer base and extensive distribution network are the key resources that give the company a competitive advantage over its competitors( Cuthbertson & Furseth, 2022 ). E-commerce sectors has capitalised on available resources to make progress in implementing sustainable packaging practice. For example, Amazon’s “Frustration-Free packaging” effort aimed at decreasing excessive packaging and promoting environmentally friendly practices has been met with customer approval and improved brand loyalty ( Annadur & Jain, 2023) . Additionally, this company's use of data analytics and technology has

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allowed it to improve packaging procedures and decrease the amount of waste production. Amazon can predict demand and effectively use packaging materials to prevent overpackaging and underpackaging through advanced technology. Therefore, RBV emphasises how a firm's resources and capabilities can result in a competitive edge and consistent long-term success. Amazon has effectively incorporated sustainability into its packaging practice, resulting in cost savings and improving brand image by utilising its assets and competencies. 2.4 Identifying the importance of product packaging strategies for the e- commerce industry 600 In today's highly competitive e-commerce industry, product packaging strategies play a significant role in a company's success. In the era of e-commerce, packaging has emerged as the primary means of physical interaction between the customer and a brand, making it a critical element in shaping a company's image, enhancing teh customer experience and communicating the quality of its product. However, packaging causes waste generation and environmental pollution. As per Ketelsen, Janssen & Hamm, (2020 ), the packaging of a product is essentially the first impression that a brand makes on its customers and it has the ability to greatly impact their perception. Packaging in e-commerce has the potential to serve as a platform for companies to communicate their brand identity and values through the inclusion of their logo, messaging and visual design on the packaging. Additionally, packaging offers a unique chance for businesses to stand out and establish an edge over their rivals( Dörnyei, 2020 ). A well-designed and innovative packaging can create a strong impression that fosters brand recognition and encourages customer loyalty and continued patronage.

To stand out from the competing label brands, e-commerce companies should prioritise packaging that sets their product apart and enhances their visual apparel for consumers. One example of an e-commerce retailer company with unique packaging is Glossier ( Montgomery, 2022) . The brand uses simple and charming pink and white packaging, adorable stickers, and personalised mote to create a delightful unboxing experience for their customer. The worldwide market for e-commerce packaging recorded a valuation of $27.15 billion in the year 2020 (Statista, 2023). The global packaging market is anticipated to surpass 62 billion US dollars in value by 2026, growing at a CAGR of 15.4 from 2021 to 2026, as shown in Figure 2.1. Figure 2.1: global value of e-commerce packaging market (Source: Statista, 2023)

On the contrary, e-commerce product packaging has a significant impact on sustainability, as it contributes to the generation of waste and carbon emissions( Escursell, Llorach-Massana & Roncero, 2021 ). E-commerce packaging commonly consists of safeguarding materials like bubble wrap and corrugated board, which are non-biodegradable. However, this sector can help contribute to creating a more environmentally friendly world by opting for eco-friendly materials and minimising the size of their packaging. E-commerce businesses should prioritise packing in response to consumer expectations and ecological responsibilities. According to Moustafa et al., ( 2019 ), one potential solution to promote environmental sustainability in packaging is through the use of eco-friendly materials and designs. Adopting a sustainable packaging strategy can positively impact the environment and improve brand image among environmentally conscious customers. For example, Amazon has committed to using recyclable paper padded mailers and paper tape instead of plastic material to rescue waste and promote eco-friendly options for customers ( Yang, 2022) . On the other hand, e-commerce items undergo an extensive process, from production to ultimately reaching the customer's residence for delivery. As per Hoffmann , Stahlbock & Voß, ( 2020 ), the packaging should ensure the product is not harmed and stays protected throughout the process, safeguarding it from any potential harm or disruption during the shipping process. Therefore, effective packaging tactics involve using strong and sturdy material taht considers the product's specific size and weight as well as concern for environmental pollution. Product packaging strategies are essential to success in the e-commerce industry as this involves branding, differentiation, customer experience and sustainability beyond just protecting products.

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Reference list Yang, Y. (2022). Transport packaging waste management in E-commerce industry: Opportunities and risks (Master's thesis, University of Waterloo). https://uwspace.uwaterloo.ca/bitstream/handle/10012/18733/Yang_Yi.pdf? sequence=7 Escursell, S., Llorach-Massana, P., & Roncero, M. B. (2021). Sustainability in e- commerce packaging: A review. Journal of cleaner production , 280 , 124314.https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7511172/ Moustafa, H., Youssef, A. M., Darwish, N. A., & Abou-Kandil, A. I. (2019). Eco-friendly polymer composites for green packaging: Future vision and challenges. Composites Part B: Engineering , 172 , 16-25.https://www.sciencedirect.com/science/article/abs/pii/S1359836818335959 Statista, (2023). Market value of e-commerce packaging worldwide in 2020, with a forecast for 2026. Retrieved from: https://www.statista.com/statistics/1174080/e- commerce-packaging-market-value-globally/ [ accessed on 24 th November 2023]

Hoffmann, N., Stahlbock, R., & Voß, S. (2020). A decision model on the repair and maintenance of shipping containers. Journal of Shipping and trade , 5 , 1-21.https://link.springer.com/article/10.1186/s41072-020-00070-2 Montgomery, A. (2022). The Death of Malls: The Rise of E-commerce and Digitally Native Brands. https://digitalcommons.lindenwood.edu/theses/301/ Ketelsen, M., Janssen, M., & Hamm, U. (2020). Consumers’ response to environmentally-friendly food packaging-A systematic review. Journal of Cleaner Production , 254 , 120123.https://www.sciencedirect.com/science/article/abs/pii/S0959652620301700 Dörnyei, K. R. (2020). Limited edition packaging: objectives, implementations and related marketing mix decisions of a scarcity product tactic. Journal of Consumer Marketing , 37 (6), 617-627.https://www.researchgate.net/profile/Krisztina-Doernyei/publication/ 342467438_Limited_edition_packaging_objectives_implementations_and_related_mark eting_mix_decisions_of_a_scarcity_product_tactic/links/604b5a3192851c1bd4e31b58/ Limited-edition-packaging-objectives-implementations-and-related-marketing-mix- decisions-of-a-scarcity-product-tactic.pdf Tarihoran, A. D. B., Hubeis, M., Jahroh, S., & Zulbainarni, N. (2023). Market-based dynamic capabilities for MSMEs: Evidence from Indonesia's ornamental fish industry. Journal of Open Innovation: Technology, Market, and Complexity , 9 (3), 100123. https://www.sciencedirect.com/science/article/pii/S2199853123002251

Davis, G. F., & DeWitt, T. (2021). Organisation theory and the resource-based view of the firm: The great divide. Journal of Management , 47 (7), 1684- 1697. https://journals.sagepub.com/doi/full/10.1177/0149206320982650 Cuthbertson, R. W., & Furseth, P. I. (2022). Digital services and competitive advantage: Strengthening the links between RBV, KBV, and innovation. Journal of Business Research , 152 , 168- 176. https://www.sciencedirect.com/science/article/abs/pii/S0148296322006336 Annadur, Y. K., & Jain, P. (2023, May). Understanding sustainable futures of packaging through the eyes of brands. In AIP Conference Proceedings (Vol. 2773, No. 1). AIP Publishing.https://pubs.aip.org/aip/acp/article-abstract/2773/1/030009/2892500/ Understanding-sustainable-futures-of-packaging?redirectedFrom=fulltext Novianti, K. R. (2019). Achieving competitive advantage through knowledge management practices: Knowledge-based view (KBV) strategy on Indonesia electricity sector. APMBA (Asia Pacific Management and Business Application) , 7 (3), 163- 176.https://apmba.ub.ac.id/index.php/apmba/article/view/320 Wei, J., Zhou, J., & Cheng, Z. (2023). Role of E-marketing of mineral products in achieving sustainability. Resources Policy , 86 , 104205.https://www.sciencedirect.com/science/article/abs/pii/S0301420723009169 Varadarajan, R. (2020). Customer information resources advantage, marketing strategy and business performance: A market resources based view. Industrial Marketing Management , 89 , 89-97.https://www.sciencedirect.com/science/article/abs/pii/S0019850120300389

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Akpan, B. (2020). Classical and Operant Conditioning—Ivan Pavlov; Burrhus Skinner. Science Education in Theory and Practice: An Introductory Guide to Learning Theory , 71-84. https://link.springer.com/chapter/10.1007/978-3-030-43620-9_6 Pavlov, Y. G., & Kotchoubey, B. (2019). Classical conditioning in oddball paradigm: A comparison between aversive and name conditioning. Psychophysiology , 56 (7), e13370. https://onlinelibrary.wiley.com/doi/abs/10.1111/psyp.13370 Purcărea, T., Ioan-Franc, V., Ionescu, Ş. A., Purcărea, I. M., Purcărea, V. L., Purcărea, I., ... & Orzan, A. O. (2022). Major Shifts in Sustainable Consumer Behavior in Romania and Retailers’ Priorities in Agilely Adapting to It. Sustainability , 14 (3), 1627.https://www.mdpi.com/2071-1050/14/3/1627 Chong, D., & Ali, H. (2022). Literature Review: Competitive Strategy, Competitive Advantages, and Marketing Performance on E-Commerce Shopee Indonesia. Dinasti International Journal of Digital Business Management , 3 (2), 299-309. https://www.dinastipub.org/DIJDBM/article/view/1198 Chen, X., Liu, C., & Li, S. (2019). The role of supply chain finance in improving the competitive advantage of online retailing enterprises. Electronic Commerce Research and Applications , 33 , 100821.https://www.sciencedirect.com/science/article/abs/pii/S1567422318300875 Ziółkowska, M. J. (2021). Digital transformation and marketing activities in small and medium-sized enterprises. Sustainability , 13 (5), 2512.https://www.mdpi.com/2071- 1050/13/5/2512

Fuertes, G., Alfaro, M., Vargas, M., Gutierrez, S., Ternero, R., & Sabattin, J. (2020). Conceptual framework for the strategic management: a literature review—descriptive. Journal of Engineering , 2020 , 1-21.https://www.hindawi.com/journals/je/2020/6253013/ James, F., & Kurian, A. (2021). Sustainable Packaging: A Study on Consumer Perception on Sustainable Packaging Options in E-Commerce Industry. Nveo-Natural Volatiles & Essential Oils Journal| Nveo , 10547- 10559. https://www.nveo.org/index.php/journal/article/view/2975

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