Question

How does the company Amazon relate to the Porter Generic strategy

How does the company Amazon relate to the Porter Generic strategy

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Answer #1

Amazon uses cost leadership strategy in which the aim of the company is to reduce the cist that is incurred in carrying out operational activities, the wastage cost is cut and hence ultimately the operational cost is reduced, by keeping the prices same they earn better profits as cost price s decreased and selling price remains the same. This gives the organization an edge over others, the competitive advantage is achieved and hence the organization is a market leader from so many years. Most of the processes are automated so as to ensure that operational costs are reduced fetching more profit ultimately.

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