ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Amazon.com’s success is due in part to its innovative business model, which allows customers to buy anything from books to furniture to electronics online. The company has also been successful in its efforts to expand beyond its core retail business into other areas, such as cloud computing and streaming media.

Detailed explanation-2: -Amazon uses the high runner strategy to market its products. This strategy uses data to uncover which products are in the highest demand in every category. Amazon’s pricing algorithm then prices those products competitively and bids heavily on advertisements to pull people to these products.

Detailed explanation-3: -Retail analytics is a category of market intelligence for Amazon that can help advertisers predict trends before they happen. Then, they can quickly make real-time decisions based on those insights in order to make successful and profitable decisions.

Detailed explanation-4: -Range, price and convenience are placed at the core of Amazon competitive advantage. The global online retailer operates with a razor thin profit margin and succeeds due to a combination of economies of scale, innovation of various business processes and a constant business diversification.