Introduction
From its launch in 1995, Amazon has grown to become the main choice for online shoppers across the world based on its array of quality products. Amazon Company’s success has been impressive, thanks to the company’s efforts to address its core competencies.
Using VRIO analysis, this paper discusses research and development, organization culture, customer relations, incumbent advantages, and branding as Amazon Company’s key competencies.
Amazon’s Core Competencies
The Research and Development (R&D) has initiated and executed ideas such as Listmania and Kindle, which have proved valuable to the company. These ideas have attracted many consumers since they allow them to choose the products they find most valuable.
Nonetheless, these ideas are not rare since Amazon’s competitors have parallel technologies. For instance, the Noble Company has a feature that enables clients to share opinions on products they have searched or bought.
These products are expensive to imitate because of the corresponding technological dexterity and high costs to develop features such as Kindle. Moreover, these features are appropriate for the success of the organization since the efforts by the R&D department are met to enhance consumer shopping experience (Mennen 45).
As Hill and Gareth confirm, Amazon has established an organizational culture whereby ideals such as prudence and leadership are given top priority (56).
This organizational norm is dear to the firm since it keeps it at the forefront of other companies in the industry in terms of efficient exploitation of resources and the introduction of changes in the company. However, this culture is not rare since most organizations encourage frugality and good leadership.
Moreover, it is not difficult to imitate it since its implementation is inexpensive and publicly available in Amazon’s website. This organization culture that promotes prudence and leadership is relevant for the organization since it attracts and retains customers. It improves consumer experience, thus granting the company advantage over its competitors (Amazon 12).
Harris says that the company recognizes that maintaining good customer relations is crucial to its prosperity (10). The company finds it valuable to allow shoppers to review the products to attract other potential customers. However, this strategy is not rare since most companies have similar tendencies of allowing their customers to share opinions on their (companies) products.
Furthermore, this idea is not technical to imitate since firms should only comprehend the anticipations of their clients and strive to satisfy them. Maintaining a good rapport with customers is appropriate for the organization, as it helps to control the online commercial market (Mennen 67).
Amazon joined the online shopping business at time when there were few online users or online shopping firms. Being the first in the industry has been of great value, as it has enjoyed several incumbent advantages such as the economies of scale of the business.
This opportunity is a rare since there can only be one first-enterer. Additionally, it is hard to mimic incumbent companies in other industries that strive to offer similar services because of competition. The benefits of the first entry are appropriate for the organization they limit the chances of rivals surpassing the Amazon in the industry (Harris 10).
The brand of the company, which is associated with one of the greatest rivers, is of utmost value to the company since it has linked it to greatness by attracting many online shoppers.
Its branding is rare since most clients only connect the name to the company. Moreover, it is also not a viable duplicate the brand. Using Amazon as the company’s name makes the organization well known and hence successful.
Conclusion
In the past two decades, Amazon has consistently grown to become the first choice for online shoppers. It has been attentive to customers’ needs following its provision of a platform that allows them to review their products, thus maintaining a good rapport with shoppers. If Amazon maintains these prudent strategies, it will continue to control the online shopping industry.
Works Cited
Amazon. 2013 Annual Report, 2013. Web.
Harris, Jim. “Amazon’s runaway success.” Backbone 1.1(2012): 10. Print.
Hill, Charles, and Jones Gareth. Essentials of Strategic Management. Ohio, OH: Cengage, 2011. Print.
Mennen, Miriam. Global Corporate Strategy – A Critical Analysis and Evaluation of Amazon.com. Germany: GRIN Verlag, 2010. Print.