QUESTION ONE

$[25]$

Case Study: Overview of Amazon

Founded in $1994$ by Jeff Bezos, Amazon started as an online bookstore and quickly evolved into a global e$-$commerce and technology giant. Headquartered in Seattle, Washington, Amazon has expanded its business model to encompass a wide range of services, including retail, cloud computing, digital streaming, and artificial intelligence. Known for its customercentric approach and relentless focus on innovation, Amazon is a market leader in sectors such as online retail, cloud services with Amazon Web Services $($AWS$),$ and smart devices like the Amazon Echo. This broad and diverse portfolio is supported by a robust value chain that enables Amazon to achieve high efficiency, scale, and customer satisfaction.

Porter's Extended Value Chain refers to an enhancement of Michael Porter's original Value Chain model. The original model, outlines how businesses can analyze internal activities to create value and gain a competitive advantage. The extended value chain takes this concept further by integrating external factors and support systems beyond a company's internal operations.

Amazon is considering setting up physical three stores in South Africa, namely, in Sandton, Cape Town and eThekwini Municipalities. Demonstrate how Amazon could apply Porter's extended value chain for its expansion into South Africa.