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20 August, 04:57

Amazon's use of the Internet as a platform to sell books more efficiently than traditional bookstores illustrates a use of information services for:

Low-cost leadership

Marketing effectiveness

Focusing on market niche

Strengthening supplier intimacy

Developing synergies

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  1. 20 August, 05:34
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    Low-cost leadership

    Explanation:

    Low-cost leadership strategy refers to a sales strategy solely based on offering the lowest possible prices. Internet companies that use this strategy try to create demand for their products by offering lower prices than the competition. Internet sales provides a huge cost advantage over traditional brick and mortar stores, and the possibility of much higher sales volumes.

    E. g. Walmart's total sales during 2018 were $514 billion, while employing 2.2 million people. Amazon's total retail sales during 2018 were $233 billion, while it employed 647,500 people. The sales per person relationship favors Amazon ($360,123 per employer vs $233,637 per employer). Walmart has 11,695 stores around the world, while Amazon has fewer than 1,000 stores, warehouses and offices (most of then are Whole Foods Market stores).
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