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Amazon and Value Chain

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Q1 Describe Amazon's position in terms of Porter's Value Chain.
Q1 Explain what Porter means by competitive advantage and competitive success.

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Solution Summary

Amazon's position in accordance with Porter's Value Chain.

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According to Porter, there are four primary value chain activities. These are inbound logistics, operations, *outbound logistics*, marketing & sales_, and service. The key inbound logistics of Amazon is "Fulfilled by Amazon". Fulfilled by Amazon enables the availability of merchandise and at the same time enables the sellers to keep their merchandise with Amazon and when an order is received, Amazon packs the merchandise and ships it. Amazon takes full responsibility for transportation, returns of goods, and customer service. Amazon "Operations" are the websites it operates. These include Amazon.com, and Amazon.ca (a). These also include foreign Amazon websites such as Amazon. cn and Amazon.com.au. In addition, operations also include the functioning of Amazon Web Services including the operation of databases, computing, and storage facilities. Amazon's Outbound Logistics includes the ...

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Kasim Johar, MBA
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  • BSc, University of Calcutta
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