Full Answer Section

Here are some specific examples of how globalization and technology have impacted Amazon.com:

• Globalization has allowed Amazon to expand its product selection. Amazon can now offer products from all over the world, which gives customers a wider variety of choices.
• Globalization has helped Amazon to reduce its costs. Amazon can now source products from low-cost countries, which has helped it to lower its prices.
• Technology has allowed Amazon to improve its customer service. Amazon can now track orders in real time, which helps to ensure that customers get their orders on time.
• Technology has allowed Amazon to personalize its marketing. Amazon can now track customer behavior and use this information to target customers with relevant ads.

Overall, globalization and technology have had a positive impact on Amazon.com. These trends have helped Amazon to expand its reach, lower its costs, and improve its customer service.

Step 2: Apply the industrial organization model and the resource-based model to determine how your corporation could earn above-average returns. Support your response with specific evidence.

The industrial organization model (I/O model) and the resource-based model are two different theories that can be used to explain how companies can earn above-average returns.

The I/O model focuses on the competitive environment in which a company operates. The model argues that companies can earn above-average returns if they have a competitive advantage in their industry. This advantage can be due to factors such as economies of scale, product differentiation, or access to key resources.

The resource-based model, on the other hand, focuses on the resources and capabilities that a company possesses. The model argues that companies can earn above-average returns if they have valuable, rare, inimitable, and non-substitutable resources.

Amazon.com can earn above-average returns by using both the I/O model and the resource-based model. Amazon has a competitive advantage in the e-commerce industry because of its economies of scale, its product differentiation, and its access to key resources such as data and technology. Amazon also has valuable, rare, inimitable, and non-substitutable resources such as its brand name and its customer loyalty.

Here are some specific examples of how Amazon.com can use the I/O model and the resource-based model to earn above-average returns:

• Economies of scale. Amazon has economies of scale in its fulfillment and logistics operations. This means that it can deliver products to customers more efficiently and at a lower cost than its competitors.
• Product differentiation. Amazon has differentiated its products through its Prime membership program. Prime members get free shipping on millions of items, as well as access to other benefits such as free video streaming and music streaming.
• Access to key resources. Amazon has access to key resources such as data and technology. This data helps Amazon to personalize its marketing and to improve its customer service.
• Brand name. Amazon has a strong brand name that is known for convenience, selection, and value. This brand name gives Amazon a competitive advantage in the e-commerce industry.
• Customer loyalty. Amazon has a loyal customer base that is willing to shop with the company again and again. This customer loyalty gives Amazon a competitive advantage because it reduces the risk of customers switching to competitors.

Overall, Amazon.com can earn above-average returns by using both the I/O model and the resource-based model. The company has a competitive advantage in the e-commerce industry, and it also has valuable, rare, inimitable, and non-substitutable resources. These factors give Amazon a strong foundation for earning above-average returns in the future.