Arizona Christian University Amazon Diversification Strategy Questions

Question Description

Amazon has grown from a small online book seller to a retailer and service provider that has changed both physical and online retailing. The opening case of Chapter 6 (Amazons Successful Growth Through Its Corporate Diversification Strategy) describes a series of actions the company has taken as it has grown through diversification. Please feel free to supplement this short case with further research. In answering the questions below, support your reasoning with the concepts and terminology from Chapter 6.

What logic supports Amazons decision to create its own shipping services (e.g., air and truck transport)?
What logic supports Amazons decision to purchase Whole Foods?
Why has Amazon decided to create its own (e.g., private label) goods that compete with those from its suppliers?
AWS (Amazon Web Services) by itself had revenue of over $30 billion in 2019. What is the logic that supports Amazon’s decision to diversify through the offering of cloud storage and computing services?

Start your original post with either the number 1, 2, or 3 and a 3-10 word description of your thinking, which correspond to a question from those above. Please, just focus on one question in your original thread. The syllabus provides further details on what is expected in discussions, and the grading criteria.

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