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Application of Generic Strategies and Models: Amazon.com
Amazon.com has become one of the fastest growing companies in the world by simply
giving customers what they want. While Amazon is mainly known for the sale of books, it has
created a niche for itself with the Kindle Digital Publisher that has set it apart from its
competitors. With their ingenuity, Amazon has given their customers the opportunity to control
their own destinies.
Original Strategy
Amazon’s original strategy was to reach as many customers as possible by expanding
operations and sales as far across the globe as possible. It was their goal to offer books, music
and other forms of media to its customers on a global level. With the expansion of the internet
and the advancement of technology, they have been able to reach their goals and create new ones
that are substantially more profound (Johnson, 2010).
Current Strategy
Amazon’s current strategy includes expanding the level of operations to include
technological advancements that allow customers to pursue their creative projects and establish
opportunities for themselves they would not have otherwise been able to attempt.
Central Elements of Amazon’s Strategy
The central elements of Amazon’s strategy revolve around empowerment and
competition. Amazon’s competitors are mainly committed to the sale of media, such as books,
music and audio tapes. Amazon has expanded their sales to include all manner of electronics,
photograph equipment and scanners as well as computers and laptops.
As one of the largest online, retail outlets in the world, Amazon sets itself apart from
their competition by providing the Kindle Digital Publisher that allows their customers to write
and publish their own material, complete with copyright capability.
Elements of a Low Cost Provider Strategy
Amazon is primarily an online company so there are no stores to manage and little
overhead associated with operating a large brick and mortar business. Warehouses, web
developers and office staff are the primary core of employees and since much of the company’s
business is generated online, Amazon’s focus is on keeping overall costs low and under control.
Elements of Differentiation
Amazon has diversified itself through its product line, as well as through its expansion
into global markets. While China strictly regulates Amazon’s business within its borders, many
countries encourage citizens to use Amazon and its services due to the empowerment they get
through becoming more productive (“Annual report,” 2011). With fluctuations in global markets,
Amazon must be able to compete with other companies while retaining its individuality, no
matter where their main client base is at the time.
From its first sales in 1996, Amazon has blossomed into a company that offers a variety
of merchandise, as well as enabling consumers to stretch their wings and expand outward in new
and productive ways. Amazon’s dedication to continuing their full range of services and
expanding on its own merit will help it succeed in both domestic and global markets.

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