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Essay / Research Paper Abstract
This 7 page paper considers how Amazon competes and if they are able to gain competitive advantages of both cost and differentiation. The paper looks at Porters theory of competitive advantage and applies it to this online store and then examines how it operates and the level of success it has in attempting to follow both strategies. The bibliography cites 4 sources.
Page Count:
7 pages (~225 words per page)
File: TS14_TEamazonca.rtf
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Unformatted sample text from the term paper:
and Amazon may be argued as seeking to gain more than one. Porter himself argued that more than one advantage was desirable, especially as some advantages are only short lived,
but he also argued that cost and differentiation advantages were conflicting and could not sustained. However, in looking for more than one advantage we may argue that both of these
companies are trying to gain and maintain both of these advantages. If we look at one; Amazon, as an example and consider he sources of advantage we can look at
if and how this is possible. Michael Porter has considered the way in which firms compete, and defined two types of competitive advantage.
These are cost advantage and differentiation. These are two different ways a competitor may get the edge on its rivals. For example, if there are two products which are very
similar, neither has the advantage, but if one looks better, or has extra features, it may have an advantage just as if one costs a company less to produce, the
company will have an advantage afforded by superior profits. To compete in the long term Porter has argued that there should be a source of competitive advantage, however, that the
two advantages of cost and differentiation are not compatible, and will create consumer confusion. Others, such as Asker, argues that the two may be compatible (Thompson, 2005). The development of
a competitive advantage is to increase the profit level. This is undertaken by satisfying customer needs. Profit may be created by supplying a product that is the same as other
products on the market, at a lower cost, or by adding extra value to the product which will mean a customer is happier to pay a higher price for the
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