Consider the following proposition and develop an argument to support one side or the other: Amazon should follow the trend to widen its business beyond online book selling and continue to move away from its original vision of "becoming the world's biggest and best online bookstore". Defend your position focusing on the aspects of resources and strategic capabilities of Amazon.
Amazon.com started its business as an online retailer of books. In order to accomplish their company goal –‘to become the world’s largest online retail store”-, it diversified its operation to include the retailing of toys, electronics, music, and other consumer goods. Through this paper, we first aim to analyse the internal capabilities of Amazon as an organisation and discuss a sustainable future trend for the organisation to follow.
The analysis which follows is aimed to first identify Amazon.com’s internal strategic capabilities explained as ‘resources’ & secondly ‘competencies’ (which will be aimed to summarise the manner in which the identified resources are deployed to effective use).
2.1 The ‘Resource Based View’ will be used as the strategic tool to hence sum up the firm’s internal strategic capability. Strategic capabilities of a firm would be defined as its resources & competencies to survive and prosper in the business environment. We will first begin by identifying the tangible & intangible resources of Aamzon.com. Typically, its resources can be considered under the following broad categories – Physical resources – Amazon’s many fulfilment distribution centres were strategically located near the main airports of the cities it operated in. Such choice of strategic location of distribution centres not only