For business to implement low cost provider strategy

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Reference no: EM132209082

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Amazon.com was originally started as an online book store. Over the years they have used several strategies to grow and expand their business. The company wanted to have the largest selection of books, and be extremely customer centric (Chaffey, 2014). Over the years the company went from an online book store to market place where goods could be sold. Amazon has used several strategies to increase their market share and diversify. The company has branched out in electronic like Echo, streaming tv services like prime and recently they have branched into the food service market with Amazon’s Go.

The central elements of Amazon’s strategy is customer service, affordable prices, and taking risk. Customer service has always been high on the list for Amazon. When they first launched, they wanted to be the world’s most customer centric company (Chaffey, 2014). To this day, they are still working towards this goal. Amazon works to keep prices low by offering services like prime that comes with free shipping. Amazon is able to keep the prices low by have an efficient supply chain that ships a wide variety of products to its customers fast (Cohan, 2018). Amazon has been able to diversify itself because the company believes in taking risk. The company believes in making bold investments in order to set itself apart from competitors (Mullaney, 2017).

For a business to implement a low cost provider strategy, they have to find way to cut the cost of a product for its customers. Amazon was able to do this by having an efficient supply chain. A company is able to manage a differentiation strategy by offering a unique product that stands out from its competitors. If a company offers similar products as its competitors, the company will have a hard time finding a loyal customer base. The best way to describe diversification is using Amazon as an example, the company are in several different market. They have their own line of electronics, prime and Whole Foods. Market timing is a strategy used to time the purchase or sell of assets. The company is able to use this strategy to time when to enter or exit from a market.

Reference no: EM132209082

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