Final answer:
Amazon's functional-level strategies involve optimized cost structures, leveraging economies of scale with computerized warehouses, and convenient customer-focused offerings, allowing them to undercut competition and establish market dominance.
Step-by-step explanation:
Amazon has transformed the book selling industry by implementing functional-level strategies that focus on achieving efficiency and economies of scale.
Firstly, Amazon's cost structure is optimized through its highly computerized warehouses in low-rent locations. These facilities use advanced technology such as robotics, which, coupled with relatively low-skilled labor, results in reduced per-sale costs. Additionally, Amazon's online presence allowed it to operate without the expensive overheads associated with traditional retail spaces.
Amazon's ability to offer a wide selection of books, combined with convenient purchasing and prompt delivery, leverages its size and scale to provide competitive pricing and convenience that undercuts its rivals even when shipping costs are considered.