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Diversification Strategies
Student’s Name
Institutional Affiliation
Instructor’s Name
Course Number
Date
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Diversification Strategies
Amazon is the world’s most significant online retailer, and it has rapidly developed in a
wide range of business operations. The company’s core business includes; digital advertising,
cloud services and e-commerce operations. Also, Amazon sells products such as Fire TV, Kindle
e-reader, Alexa personal assistant, and television and movie shows through the Amazon prime
video platform. Therefore, it is evident that the company's major source of revenue is retail, with
physical and online stores registering the most outstanding share. Amazon's primary source of
operating profits is Amazon Web Services (AWS), which is currently proliferating (Cook, 2018).
Besides, the company’s primary business approach is dependent on an ecommerce market
platform.
Amazon began as an online bookstore but has become an e-commerce giant that virtually
sells various things such as; apparel, toys, furniture, electronics, food, and furniture. The
company has invested in a diversification strategy to improve its revenue and market stocks.
Amazon’s ongoing diversification plan will enable it to gain and sustain a long-term competitive
advantage. This will occur because it now offers a broad range of products and services,
satisfying the needs of its customer base. Also, through its physical and online presence, Amazon
caters to the needs of several customers within a short duration. Additionally, Amazon Web
Services that the company offers to governments, companies, or individuals serves a significant
percentage of its customer base. All these services and products offered by the company give it a
long-term competitive edge over its various competitors.
Amazon can improve its diversification strategy to maintain a long-term competitive
advantage in the following way. The company can adopt horizontal diversification where it
develops services or products that complement its primary business. For instance, alongside the
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provision of Amazon Web Services, the organization can begin developing laptops and
computers. This strategy can appeal to its customers as the two aspects are directly related. This
way, Amazon can maintain its competitive advantage.
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Reference
Cook, B. (2018, July). Formal reasoning about the security of amazon web services.
In International Conference on Computer Aided Verification (pp. 38-47). Springer,
Cham.

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1 Diversification Strategies Student’s Name Institutional Affiliation Instructor’s Name Course Number Date 2 Diversification Strategies Amazon is the world’s most significant online retailer, and it has rapidly developed in a wide range of business operations. The company’s core business includes; digital advertising, cloud services and e-commerce operations. Also, Amazon sells products such as Fire TV, Kindle e-reader, Alexa personal assistant, and television and movie shows through the Amazon prime video platform. Therefore, it is evident that the company's major source of revenue is retail, with physical and online stores registering the most outstanding share. Amazon's primary source of operating profits is Amazon Web Services (AWS), which is currently proliferating (Cook, 2018). Besides, the company’s primary business approach is dependent on an ecommerce market platform. Amazon began as an online bookstore but has become an e-commerce giant that virtually sells various things such as; apparel, toys, furniture, electronics, food, and furniture. The company has invested in a diversification strategy to improve its revenue and market stocks. Amazon’s ongoing diversification plan will enable it to gain and sustain a long-term competitive advantage. This will occur because it now offers a broad range of products and services, satisfying the needs of its customer base. Also, through its physical and online presence, Amazon caters to the needs of several customers within a short duration. Additionally, Amazon Web Services that the company offers to governments, companies, or individuals serves a significant percentage of its customer base. All these services and products offered by the company give it a long-term competitive edge over its various competitors. Amazon can improve its diversification strategy to maintain a long-term competitive advantage in the following way. The company can adopt horizontal diversification where it develops services or products that complement its primary business. For instance, alongside the 3 provision of Amazon Web Services, the organization can begin developing laptops and computers. This strategy can appeal to its customers as the two aspects are directly related. This way, Amazon can maintain its competitive advantage. 4 Reference Cook, B. (2018, July). Formal reasoning about the security of amazon web services. In International Conference on Computer Aided Verification (pp. 38-47). Springer, Cham. Name: Description: ...
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