1. Leonard Berry suggests that companies delivering great service as a differentiator may create a sustainable competitive advantage. Using Amazon as an example, what problems might some companies face in trying to create that advantage?

2. Amazon invests in predictive algorithms to assist its customers in finding products they may be interested in. What are some concerns Amazon should look out for as it improves its search and recommendation tools?

2. Amazon Prime, briefly mentioned in the case, is a subscription service that gives members free two-day shipping on hundreds of thousands of products, plus provides many other features such as access to music, movies, TV shows, book sharing, and more. In the United States, Prime membership is $100 per year. What effect do you think Prime membership has on customer loyalty and switching costs?