Week 5 Blog Post Chapter 6

This week we will discuss the topic of cost leadership strategies for the retail giant Amazon. The book, Gaining and Sustaining Competitive Advantage, states that cost leadership is a strategy that “focuses on gaining advantages by reducing its economic costs below all of its competitors. “Amazon has reduced the threat of incipient entrants and rivalry with its economies of scale. Currently, Amazon employs a multitude of strategies, but cost leadership has been their most efficacious to remain competitive and achieve low operating cost to maximize profits. Which has led them to transmute the game in e-commerce and technology. Amazon makes most of its revenue from AWS amazon web services since 2016 which is their cloud computing division. Now Amazon is currently focusing on reducing its supply chain operations cost through prime air and its fulfilment centers across the nation. Reducing transportation cost will significantly ameliorate Amazon's bottom line.