Final answer:
Internal capabilities of a company include resources like modern facilities, computers, the strategic ability to offer low prices, and large cash reserves that help in maintaining a competitive edge in the market, as demonstrated by companies like Amazon.
Step-by-step explanation:
Internal capabilities of a company refer to the resources, assets, and advantages that a company can leverage to achieve competitive success in the market. In the context of this question, internal capabilities could include:
- Modern facility: which implies having a state-of-the-art workspace or production environment.
- Computers: which could represent a company's technological resources or infrastructure.
- The ability to offer low prices: which is often a competitive strategy enabled by operational efficiencies, economies of scale, or large cash reserves.
- Large cash reserves: which point to the financial strength and stability of a company that can be used for investments, weathering downturns, or strategic maneuvers.
Companies like Amazon have successfully leveraged internal capabilities such as economies of scale, technological infrastructure, and cash reserves to create a stable and market-oriented economic climate for their operations. This has enabled them to offer competitive pricing and has made them an industry leader.