Final answer:
The best indicator of how well a company's current strategy is working is through an analysis of profitability.
Step-by-step explanation:
The best indicator of how well a company like Amazon or Walmart's current strategy is working is through an analysis of profitability.
Profitability measures a company's ability to generate profits from its operations. It takes into account factors such as revenue, costs, and expenses to determine how efficiently a company is utilizing its resources.
For example, if a company's profitability is increasing over time, it suggests that its current strategy is effective and generating positive financial outcomes. On the other hand, if profitability is decreasing or stagnant, it may indicate that the company's strategy needs to be reassessed. Understanding a company's strategy requires looking at its competitive advantages, which may include an efficient production model and a competitive cost structure, factors that allowed Amazon to revolutionize the book selling industry by undercutting traditional retailers even with shipping costs considered.