Chapter 8

Amazon is a company that uses several smart strategies to stay ahead of its competitors. It follows a cost leadership strategy by keeping prices low through efficient operations, advanced technology, and a massive distribution network. At the same time, Amazon also uses a differentiation strategy by offering unique services like fast Prime shipping, personalized shopping, and a wide range of products that make shopping easy and convenient. Rather than focusing on just one market, Amazon competes in many areas—including online retail, cloud computing (with AWS), and digital streaming—showing a broad competitive approach. This mix of strategies helps Amazon stand out and avoid being “stuck in the middle” without a clear direction. Its focus on constant innovation and customer value shows how a company can build a long-lasting advantage in a competitive market.