Amazons Business Model and the Operational Strategies Coursework - 1

amazons business organisation Model and the Operational Strategies - Coursework ExampleAmazon has been able to pull of its business model through the exercise of three operational strategies to enhance its competitive advantage low-cost leadership and customer differentiation. However, when we evaluate Amazons business model and the operational strategies that underlie it they greatly resemble those of its key competitor Barnes & portentous. Barnes & dreadful also used its economies of scale to support low-cost leadership, it broke new ground by developing softw atomic number 18 that would enable its customers to personalize their web pages and also enjoy the results of collaborative filtering (Ghemawat 13). The difference in atomic number 53 organizations choice to use a pure play system while the opposite uses a brick-and-click system is too simplistic to explain the relative success of Amazon.com over Barnes & Noble. This would be better(p) explained through the dynamic c apability. Dynamic capability refers to the ability of the firm to purposefully create, extend or exchange its resource base so as to achieve congruence with the changing business environment (Menon and Mohanty 3). Of greatness to note is the use of the word purposefully which negates the element of accident or luck. Dynamic capability involves purpose and the emergent stream of activities within an organization that is taken with a certain implicit aim. Although dynamic capabilities are equifinal and exhibit commonalities across firms, performance differences arise between firms due to both cost and differential clock with which the dynamic capabilities are used (Menon and Mohanty 5). They are path dependent processes thus are idiosyncratic and rocky to imitate. Dynamic capabilities can be a source of competitive advantage. That is why even though Barnes & Noble seem to be following similar operational strategies to Amazon.com, the results are different for each firm.