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O 

Ritu Tiwari(2K10B54)
Prashant (2K10B55)
Kimmy Babber(2K10B56)
Neha Mendiratta(2K10B57)
Aditya Pratap Singh(2K10B58)
Anilesh Kumar Tiwary (2K10B59)
á  


ÿ unded in 1994; Started selling bs nline and nw perate Web sites
that er varius prducts and services, which include: music, DVDs,
vides, electrnics, camera and phtgraphy, clthing apparel, shes, etc.

ÿ eatures include: ne-clic shpping, custmer review and e-mail rder


veriicatin.

ÿ The cmpany is in calitin with ther retailers and er varius new,
reurbished, and used items in categries.

ÿ eadquarters is in Seattle (Washingtn) with an additinal ice in


Ceyville, Kansas. It has six glbal websites t serve dmestic custmers
in the US, the UK, Germany, rance, Japan and Canada
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Michael E. Prter states that a cmpany gains
cmpetitive advantage ver its cmpetitrs by:-

 Perrming the value activities at lwer cst,

 Dierentiating its prduct r service by the value


activities, r

 illing the needs  a specialized maret by the value


activities.
ü  

´ The lw cst leader in any maret gains cmpetitive


advantage rm being able t prduce at the lwest cst.
´ µCst advantage' is the cus.
´ wever, lw cst des nt always lead t lw price.
Prducers culd price at cmpetitive parity, expliting the
beneits  a bigger margin than cmpetitrs.
´ Sme rganizatins, such as Ô  , are very gd nt nly at
prducing high quality auts at a lw price, but have the brand
and mareting sills t use a premium pricing plicy.
    
´ Dierentiated gds and services satisy the needs 
custmers thrugh a sustainable cmpetitive advantage.

´ This allws cmpanies t desensitize prices and cus n value


that generates a cmparatively higher price and a better
margin.

´ The beneits  dierentiatin require prducers t segment


marets in rder t target gds and services at speciic
segments.
    
´ ere an rganizatin cuses ert and resurces n a narrw,
deined segment  a maret i.e. niche maret.

´ A cmpany culd use either a cst cus r a dierentiatin


cus.

´ With a cst cus a irm aims at being the lwest cst prducer
in that niche r segment.

´ With a dierentiatin cus a irm creates cmpetitive


advantage thrugh dierentiatin within the niche r segment.
O    ü 

By placing amazn.cm n Prter's generic strategy


mdel we can see that they adpt a ü  
  as ther substitutes are als available and
there is a threat rm the new entrants in the
cmpetitive maret.

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