How is Amazon using its core competency in its diversification efforts? Amazon continues to spend billions on diversification efforts. Do you believe these efforts contribute to Amazon gaining and sustaining a competitive advantage? Why or why not? Where is Amazon's next growth engine coming from?

 

Amazon has high competence rates in its operational flow. It can be attributed to efficient customer relationships, improved supply chain management, and effective distribution channels. The firm has increased its diversification based on its competency in that it is making entry into other platforms such as smart devices, artificial intelligence, and logistics.

The diversification efforts will most likely result in increased profitability for Amazon Inc. The diversification has been made through cloud computing allowing the firm to reach a wider customer base. It will increase sales capacities while reducing production costs.

The current industrial revolution is pushing for firms to embrace advanced technology within their operations. Amazon's diversification will give it a competitive advantage against its competitors since it will increase its distribution of commodities on the markets. It will also increase the availability of commodities to consumers since diversification will factor in most of the ranging consumer needs.

Amazon's next growth engine arises from a wide reception and penetration of the internet, coupled with an acceptance of e-commerce systems in global markets. With efficient logistics diversification, the e-commerce platforms will increase sales capacity since it will reach more consumers and deliver commodities on time. It will result in increased production capacities for the firm hence more profits.