Question
Can you help me with these questions about this article? Prompt: In 2017, Amazon acquired Whole Foods for $13.7 Billion Dollars, leading competitors to further
Can you help me with these questions about this article?
Prompt:
In 2017, Amazon acquired Whole Foods for $13.7 Billion Dollars, leading competitors to further question just how they can compete with the retail giant.
Amazon doesn't just want to be your destination for online shopping - it wants to be where you interact with your home, watch television and movies, the backbone of your favorite websites (E.g., Amazon Web Services), your go-to source for product recommendations, and even now --with bricks and mortar acquisitions like Whole Foods -- where you physically go to shop.
A recent New York Times article suggested that Amazon is well suited to the current era. The author suggests that digital technology and changing economics of scale have permanently changed the nature of competition - that we are in an era where a small number of huge companies demonstrate unprecedented market reach and control.
But is the only strategy in this "winner-take-all" era to aspire to selling things to all people and to meet their each and every need? Some strategists think not. For example, Netflix's CEO rejects the Amazon approach of "strategy-as-world-domination."
Questions:
1. How large a part of your everyday lives are Amazon, Walmart, and Netflix?
2. What are Amazon's resources and capabilities? Analyze each using the VRIO framework.
3. Do you think Amazon, Walmart, and Netflix are "cost leaders" or "differentiators" in terms of strategy? Explain.
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