1. Describe Amazon's diversification strategy. What type of diversification strategy is Amazon pursuing? Explain.

2. What is Amazon’s core business? Is AWS related to Amazon’s core business? Why or why not? Some investors are pressuring Amazon’s CEO to spin out AWS as a standalone company. Do you agree with this corporate strategy recommendation? Why or why not? Hint: Do you believe AWS would be more valuable within Amazon or as a standalone company? 

3. At this point, Alphabet and Meta are the clear leaders in the digital ad space, which is predicted to continue to grow exponentially (reaching $256 billion in 2025, more than three times the expected spending of $81 billion on traditional TV advertising). Although Amazon’s market share was a mere 12% in online advertising (in 2021), many believe that Amazon is best positioned to be the market leader in the digital ad space in the future. What is the basis of this argument? Do you agree with this assessment? Why or why not? Buttress your position. 

4. Amazon continues to spend billions on seemingly unrelated diversification efforts. Do you believe these efforts contribute to Amazon gaining and sustaining a competitive advantage? Why or why not?