From Retail to the Cloud: Strategic Reinvention and Competitive Advantage at Amazon

Abstract

This paper examines Amazon's strategic evolution from an online retailer to a global technology and information powerhouse. Using VRIO, SWOT, and financial analyses, it explores how Amazon leveraged data, cloud infrastructure, and platform integration to build sustainable competitive advantages beyond retail. The study identifies Amazon's shift toward a broad and focused differentiation strategy through innovations such as AWS, Prime, and its recommendation systems, all underpinned by massive data utilization. However, it highlights critical strategic challenges, including overreliance on legacy products, misalignment with Whole Foods' premium market positioning, and rising competition in the cloud sector. Recommendations include adopting open-source integration, expanding Prime internationally, and divesting Whole Foods to refocus on higher-margin digital businesses. The analysis concludes that Amazon's long-term success depends on continuous innovation, strategic alignment, and maintaining leadership in the global data-driven ecosystem.

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