Chapter 7

Amazon is actively pursuing dual business-level strategies. Recently, the company announced a $4 billion investment to expand same-day and next-day delivery to over 4,000 rural towns, transforming local delivery hubs to strengthen its cost leadership by minimizing logistics costs and increasing market accessibility. Also, Amazon is considering an increased investment in AI startup Anthropic, building on its existing $8 billion stake, to embed advanced AI technologies into Alexa, AWS, and Prime Video. This move exemplifies a differentiation strategy by enhancing product uniqueness and technological innovation. Together, these initiatives demonstrate how Amazon strategically leverages both cost efficiency and innovation to maintain a sustainable competitive advantage in diverse market segments.