Market Development is a crucial aspect in Amazon’s competitive strategy. The use of its existing products for capitalizing on new market areas through its core competencies such as faster delivery time, new channels and distribution methods have facilitated greater market expansion for Amazon. Amazon Fresh offers same-day delivery service on grocery food items and toiletries while Amazon Prime provides a free two-day delivery service on purchases and access to a library of streaming movies and music where customers pay an annual subscription fee of $99 US/£79 Britain for the service. Amazon Prime members also have access to free deliveries on Sundays as well. Amazon recently partnered with Britain Fashion retailer AllSaints to offer Prime members free next-day shipping, where Amazon charges the company for every time their customer clicks through Amazon.com resulting in additional revenue. Amazon’s critical success factor – efficient supply chain and logistics has allowed Amazon to gain competitive advantage as fast and free delivery has lead to an increase in sales thereby incurring higher market share. This is due to the high preference of convenience by customers and their high …show more content…
The strategic issues of Amazon indicates that its strategic position requires a shift from increasing market share and growth to achieving higher profitability if it wants to be competitive in the future. However their strategic capabilities and core competencies such as technological infrastructure, software development, inventory control and economies of scope has enabled high competitive advantage which presents the opportunities to undertake new investment options to overcome challenges to facilitate achieving greater profit margins and keeping ahead of