1. Amazon’s focus was relentlessly on customers, hence, their entire strategy from the beginning was built on the vision. Its strategy was based on growth which was achieved through offering variety and convenience at low costs to keep an ongoing customer experience. Initially it was only based on a three pillar strategy that is; selection, pricing and convenience along with innovation. It had aimed at investing in technological advancements as a growth indicator. In 2007 Amazon launched a number of new websites serving customers with specific needs. Amazon strategy changed from just serving web retail customers to now serving consumer customers, seller customers and developer customers. Amazon was going through expansion and diversification. It started acquiring companies to serve its need for technological development, products and services. Amazon divided the company into three functional areas; product development, technological content and development, supply chain and distribution. From originally serving only the retail customers, in 2009 Amazon served three distinct groups that is consumer customers, seller customers and developer customers.
Distinctive capabilities included its technological innovation capacity. Amazon had built the virtual sales person for its customers, by leveraging off information from millions of users. In the long term these innovations helped them achieve lower operating costs even though it cost heavy investments. Amazon was the price leader in a wide variety of products and was continuously able to please it customer by providing convenience.
Core competences that Amazon had posses have been relatively significant. With its prime importance and vision to be customer centric and deliver them value to differentiating themselves from its competitors by distinctive capabilities and constantly regenerating better innovations for ease