CASE Study: Amazon - The Everything Store Feended by entreprencur /efi Betos in Seatle in 1994 as one of the firit dotoom firms. Amanon's busioess medet is built erticely around emerging diphal technology, th has grown to become a \$315.5 billioe turnover e-conenerce mega-reailer and cloud compruting bainess, with a beand value that hai quintapled in the pas the years (Financial Times 2019 ). As is atariod life as a small bookseller, at the beart of Amaron's soceess is the firm's ability te sell books at a nignificantly reduced price coengured with more traditional book retailen by leveraging its c-commeres platfonn as a value-creating sarategic revoure. The more Amuon achicved increasing economies of seale, the moee uggificant the cont sviegs it could male to its books, which alkowed Amason to sell its prodont at an enmathatle price compared with is competiton. Aditionally, Amawon was at belm of an merging new uchanolog, divelopiag the Kindle, which gave booklovers the coevenicoce of hundeedi of boek titles on a single devise. Amave wild Kindilis at a break-even price, but the additional bevk downbads fuen Amaren's cloud acrver deove the finn's marginal costs down cven further, and compentated for the lack of profits gencratod from Kindle allos. Amamo's ablity to invert in emerging technologieu pet enormoeas presure co ether boolsellen. who were strugding so compete. Itad Watcritones in the UK not boes able to revenfigure its activities to poovide incmntives for poople te visi their stores rather than buy their books trom Amana (ai discused in the openieg caie study. Whacrstoess woold have followed other well-known book retiken, soek as Borders in the USA, into admiaiseation. Amaren remaias a constan threat to many icoeic indepeadeet boeksbops taday, derpite a tise in the number of independeot bookhops in the UK in noee recent ycark. Anwion bas alio expunded into acw maketc. If costinses to react to changing external evvisoneness sach as techeobogical shange and inovatise, as well as chanpes in censumar tastes, which has led them lo expand into grocery delnery services (Amaroe Partry) and cashiefles erocedy stores (Amuren Go), fachice retailing (Prime Wandrobel. mevie eatertainment production (Amawe Station), everyday alecteonics (Amamellasics), wise recognition technology (Echo- and Aleu-enabled amart ipeakeos), and coen book pulliahing by explecting the epportunities to sell tneee plyzical and digital peoducts to a loyal cuitcener base. Mont recently, Amaeen has been experimenting with the use of drose tectinolegy to deliver purchaser within 30 minutes of a cuntomer ender, ealling it Prime Air. It even has plans to launch theusods of satellites to previde the entire slobe with broadtund insernst acres. Amason has abo increased the rate of its acquisitions since 2015, with ite mest significant acquisitioe being Whole Feodi, a premium grokery retaild, in 2017 . Tha acyoisinien gives Amaron access to premium tetail wites, and may allow Amarom to use Whole Feods to expund its own food offer and we the pibyacal spose for cuatomers no pick ap their Amane orders and to sell inems that may be less suitable for eolise tetailing. However. Amaxe has not stupped there. Althooch Amaxon cuetinses to beat is comptitoes" custemer ender futfilment tines, its curatemes" shopping experience is limited to simply beowsine a webpuge. Amaroo's competiters sw this as a potential for cumpetitive abvantage, and reyponded by colunciag their ewn cutwer expenience by creating "livine seces" beyved a traditional sbopping experiesce, such as the cewy cafes in Watentonce. However, Amaton hab counter-esspeded by diserpeively epvening bricks and mertar ssoes in a tuanker of US cities. These stores are designed to meer the sepertharpal eapertations of the modem-lay consurner by fotating inventory out on a wetbly busis is items becuene more or los popular on their webeite, and items are taged with exclasive prices for Prime custoeners, and customer ratings and revicws. Threogh this new move. Amuon secks sot just so repbeate eeher retailers: in-store expericece, but alio identify incw ways to cagage custemen. The company has truly beceme an 'everything store', As Jefl Beies is foed of saying 'Amaan wasts to contiscally give more to their cuutomers without charging more". Questions for discussion: 1.What do you consider is/are Amazon's strategic resource(s)? 2.How does Amazon use these resources to create and sustain competitive advantage? 3.Do you consider Amazon's venture in physical retailing logical given the firm's source(s) of competitive advantage? If so, why, and if no, why not