Yahoo and Amazon: Building a Competitive Advantage Essay.
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Details:Assignment 1: Yahoo and Amazon: Building a Competitive
Advantage Review Case 21 How
Amazon.com became the leading online retailer by 2011 , and Case 23
Yahoo!’s business model working in 2011? 1.Describe, in brief, the histories of both of
Amazon.com and Yahoo.com, and determine the core business of each.
2.Determine the key strategic differences that have impacted the
relative success of both Amazon.com and Yahoo.com. Provide two (2)
specific examples of such strategic differences to support the
response. 3.Compare and contrast the approach to strategic planning
that each company has pursued in order to achieve a competitive
advantage. Focus specifically on both intended and emergent
strategies. 4.Analyze the manner in which each company’s distinctive
competencies help to shape the strategies that each company pursues.
Provide a rationale to support the response. 5.Recommend one (1)
functional level strategy for each company which prescribes the
essential ways in which each may achieve superior efficiency, quality,
innovation, and customer responsiveness. Provide a rationale to
support the response.
Here’s a snippet of the essay.
A competitive advantage refers to an advantage achieved over competitors by giving customers superior value, either through reduced prices or by giving additional service and benefits that justify higher or possibly similar prices (Porter, 2004). Competitive advantage is attained when attributes that enable firm to perform at an advanced level than its competitors and other similar firms in the industry are achieved. For producers and growers occupied in niche marketing, nurturing and finding a competitive advantage can imply higher profits and a business enterprise that is successful and sustainable in the long term. Companies can develop and apply various strategic moves in order to build their competitive advantage. This is done to ensure a clear distinction or difference that is essential to a company’s customers; it’s a strategy that a company’s competitors cannot match. A firm develops a competitive advantage by creating new strategies of leadership in issues like innovation, quality, customer experience and cost (Porter, 2004). However, according to management experts, in building a competitive advantage, a company should identify one area that it exhibits extraordinary performance and focus its strategies on it. This paper looks at what defines competitive advantage and highlights the strategies that Yahoo and Amazon have adopted in building their competitive advantage, in addition to assessing the differences in their strategic planning.
Yahoo was started in by two Stanford university students in January 1994. What first started as a hobby by these two students, eventually transformed into a global brand that changed the way individuals communicate with one another, by availing means for accessing a and finding information and online purchasing (Santa Clara Valley Historical Association, 2008). Through the creation various websites directory which was appropriately organized in a hierarchy, they indexed various websites, this made it significantly easier in terms of searching and accessing information across the internet. On the month of April 1994, Jerry and David search website was renamed to Yahoo, the yahoo.com domain was made in January 1995. As a result of enabling people to find various useful sites, hundreds of people became its users; this led to a great success for the company during this period.