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CASE STUDY 1(AMAZON IN 2019)

1.How does Amazon's Flywheel strategy fits with its evolving vision statements over the
years? 
In order to realize its initial ambition of becoming the world's best book retailer, Amazon
has placed a significant emphasis on organic growth and acquisitions. It was needed to make
some improvements to the infrastructure in order to ship particular books directly from
publishers, but this allowed for practically unlimited numbers and variety of books to be
acquired at a very low marginal cost. The new ambition of becoming the world's biggest
retailer entails widening product ranges and acquiring acquisitions in order to bring in more
money and distribute the expenses across a wider number of locations. New systems aren't
essential by the addition of a new product line. This does not need twice the amount of
information systems, which suggests that IT expenditures may be shared over a greater number
of units. Kitchen appliances, yard furniture, and hardware also make money without a bump in
IT expenditure. While modest improvements like letting third-party sellers greatly extended
product options, it is expandable, essentially allowing nearly any products to be given. It took
Amazon 10 years of losses to pay off, and their enormous expenditure in the early years all
developed inertia in their "flywheel."
2. Focusing on online product sales, which of the generic strategies does Amazon appear
to be using based on this case? Provide support for your choice.

  Students are likely to have strong reasons for selecting any or all of the three possibilities.
They seem to be mostly focused in giving a service that connects customers with other
merchants that have things identical to theirs. A low-cost advantage seems to be supported by
the "flywheel" theory. Finally, the following may be applied to support the argument that they
have a differentiation strategy: High trust, transparent policies, and data to help in making
purchases are all supplied by these firms. The alternatives for establishing distinction go well
beyond what is presented here, offering for an interesting class debate.

3. How far could Bezos have gone in Amazon's evolution without using information
technology? 
Bezos would be confined in his choices. From the back office to the point of interface with the
client, every component of the organization relies on technology.
4. Assume that there is hyper competition in product sales. How is Amazon responding to
that environment? 
Amazon isn't stopping there. Their former "e-commerce primarily" policy seemed to be
reversed with the acquisition of Whole Foods Markets. Disruption is the objective of Amazon's
efforts into Amazon Go! and the healthcare projects described in the text. Search for "Amazon
new projects" on the internet and commodities like self-driving autos, satellites, and electric
trucks will emerge. Amazon's actions have a strong theme of disruption.

5. Are the newly announced endeavors in health care, Amazon Go! stores, and shipping
services consistent with Amazon's vision? Defend your position.
When it comes to Amazon's long-term goal, students will have a vast diversity of viewpoints,
but on average, their vision is contradictory with just becoming the best retailer on Earth. In the
long run, it is natural to anticipate that Amazon's vision will alter as different new enterprises
grow.

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