What are the corporate level strategies of Amazon.com and explain each corporate level strategies? Case 25 Amazon.com: Competitive Advantage and Functional Strategy C-237to fulfill customer orders more rapidly and at a lowercost, thereby solidifying its competitive advantage oversmaller rivals.the digital distribution of books-a market segmentwhere Amazon is the clear leader. Digitalization ofbooks is disrupting the established book-retailing in-dustry and strengthening Amazon's advantage in thissegment. To store digital media, from books to filmsand music, and to enable rapid customer download,Amazon has built huge server farms. Its early invest-ment in “cloud-based" infrastructure has turned it intoTo make its distribution centers even more ef-ficient, Amazon is embracing automation. Untilrecently, most picking and packing of products atAmazon distribution centers was done by hand, withemployees walking as much as 20 miles per shift topick merchandise off shelves and bring it to pack-ing stations. Although walking 20 miles a day may begood for the physical health of employees, it representsmuch wasted time and hurts productivity. In 2012,Amazon purchased Kiva, a leading manufacturer ofrobots that service warehouses. Postacquisition, Kivaannounced that, for the next 2 to 3 years, it wouldtake no external orders and instead focus on automat-ing Amazon's distribution centers. Kiva robots pickproducts from shelves and deliver them to packingstations. This reduces the staff needed per distribu-tion center by 30 to 40%, and boosts productivityaccordingly.On the innovation front, Amazon has been a leaderin pushing the digitalization of media. Its invention ofthe Kindle digital reader, and the ability of customers touse that reader either on a dedicated Kindle device or ona leader in this field. It is now leveraging its expertiseand infrastructure to build another business, AmazonWeb Services (AWS), which hosts websites, data, andassociated software for other companies. In 2018, AWSwas projected to generated over $22 billion in revenues,making Amazon the leader in the rapidly emergingfield of cloud computing. Jeff Bezos is on record asstating that he believes AWS will ultimately match Am-azon's online retail business in sales volume.Sources: "Amazon to Add 18 New Distribution Centers," SupplyChain Digest, August 7, 2012; A. Lashinsky, “Jeff Bezos: The UltimateDisrupter," Fortune, December 3, 2012, pp. 34-41; S. Banker,"The New Amazon Distribution Model,“ Logistics Viewpoints,August 6, 2012; G. A. Fowler, "Holiday Hiring Call: PeopleVs Robots," The Wall Street Journal, December 10, 2010, p. B1;R. J. Hottovy, “Advertising, AWS, prime engagement, and third-party sales reinforcing Amazon's cash flow potential," Morning-star, July 27, 2018.a general-purpose device such as an iPad, turbocharged 25CASEAMAZON.COM:COMPETITIVEADVANTAGE ANDFUNCTIONALSTRATEGYThis Case was Prepared by Charles W. L. Hill of theSchool of Business, University of Washington, Seattle.When Jeff Bezos founded Amazon.com in 1995, theonline retailer focused solely on selling books. Musicand videos were soon added to the mix. Today, one search engines. This indicates that Amazon is increas-can purchase a wide range of media and general- ingly becoming the starting point for online purchasesmerchandise products from Amazon, which is now the and has developed its own powerful search capabili-world's largest online retailer, with over $200 billion inannual sales in 2018. According to Bezos, Amazon'ssuccess is based on three core factors: a relentlessfocus on delivering value to customers, operating ef-ficiencies, and a willingness to innovate.Amazon offers customers a much wider selec-tion of merchandise than they can find in a physical software analyzes customer purchasing patterns andstore and does so at a low price. Amazon both stocksand sells merchandise directly, and acts as an onlinemarket place for third-party sellers (who accountedfor more than 50% of total units sold in 2017). Online inventory holding costs while always having productshopping and purchasing is made easy with a user- in stock. The increasingly dense network of distribu-friendly interface, product recommendations, cus-tomer wish lists, and a one-click purchasing optionfor repeat customers. The percentage of traffic that delivery costs. As Amazon grows, it can support aAmazon gets from search engines such as Google hasbeen falling for several years, whereas other online re-tailers are becoming more dependent on third-partyties. As a result, its active customer base in 2018 num-bered around 400 million.To deliver products to customers quickly and accu-rately, Amazon has been investing heavily in a networkof distribution centers. In the United States alone,there are now over 100 such centers. Sophisticatedinforms the company what to order, where to store itin the distribution network, what to charge for it, andwhen to mark it down to shift it. The goal is to reducetion centers enables Amazon to reduce the time it takesto deliver products to consumers and to cut down ondenser distribution network, which it turns enables itC-236

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What are the corporate level strategies of Amazon.com and explain each corporate level strategies?

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