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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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M8d Diversification Strategies

M8d Diversification Strategies

Q Much of this module’s attention is directed at Amazon, one of the great success stories of the last 25 years. The firm grew from a simple online bookstore to one of the largest market valued corporations in the world, due largely through a highly successful diversification. Yet despite that success, the firm is nevertheless engaged in a fierce competitive value for the digital marketplace. For this discussion here is what I would like you to do: • Read and review Chapter 8 of the Rothaermel text paying special attention to the abundance of information on Amazon, along with the M8 Content Guide. • First, create a post that describes what you view as Amazon’s core business. o Also, provide an assessment as to whether you believe the firm’s ongoing diversification strategy will contribute to gaining and sustaining long-term competitive advantage. • Next, in your responses to fellow classmates work to refine Amazon's diversification strategy to help maintain long-term competitive advantage.

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I view Amazon’s core business to be that of e-commerce and online sales of diversified types of retail products. The strategy of trying to be the cost-leader in the target markets is an important strategy to ensure that there can be discounts provided to online customers for purchasing products online. Amazon’s business is to build a loyal customer database to ensure that customers keep purchasing the products of Amazon and do not switch to other online retail organizations. This is because there are many online retail organizations which offer low prices and try to gain competitive advantage by implementing cost-leadership strategies.