The business level of Amazon.com is cost leadership. Best selling books are sold at a 30 to 40 percent discount and other books are discounted at 10 percent (Bade).

Amazon.com’s corporate strategy was in the form of single business to dominant all of business, but has since moved towards unrelated because they are offering more than just books at their website, ranging any where from kitchen and house ware to toys and games, DVDs, and herbal supplements.

Amazon.com has increase in size since it began operations in July 1995, doubling in size every 2.4 months with an 838 percent increase in sales form 1996 to 1997. To keep up with this extraordinary growth, Amazon had 800 employees on its payroll as of August 1998(Bade).

Amazon.com being a company who distributes products through the web, the capabilities is endless. For Amazon, these capabilities include being able to produce easy to use websites, e-commerce products, electronic mailing services that are superior to those in existence, and other items that utilize the advanced knowledge of electronic engineers who work for the company. In order to obtain a sustainable competitive advantage they must continue to use and expand on their core advantages and find new ways to implement changing trends and updated networks.

Another threat for Amazon.com is the fact that through the four years they have been in business they have yet to turn a profit or even come close to turning a profit which has led them into debt with no signs of gaining a profit in the near future.

The mounting competition has forced other smaller competitors such as Half.com to enter the price battle against amazon.com. Amazons large scale corporate strategies and mass sales has so far allowed it to become one the largest and therefore through sheer quantity sales the cheapest source for your online shopping needs. So when you need a book, or even herbal supplements, amazon.com will probably be your cheapest and best alternative to conventional shopping.

A major threat for online booksellers is that, with the ease of distributing products online, book publishers could begin to allocate their books through their own websites, eliminating the middleman, and reaping greater profits at the same time.

has plans in the works to capitalize on its increased market share by expansion into European e-commerce with already having 22% of sales from outside the United States. By acquiring previously established global companies, Amazon’s expansion into international localities should be smooth. Part of Amazon’s cooperative strategy is strategic alliances through acquiring businesses to expand into new product and market areas. They differentiate themselves while at the same time achieving their strategic mission: convenience, selection, service, and price. This has also been Amazon’s CEO Jeff Bezos’ intent form the initial thought and continued to this day.

As I have noted previously, there are many opportunities tha

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