Final answer:
Amazon uses a business model that emphasizes economies of scale, advanced automation, and a strategic blend of e-commerce and physical stores to offer competitive pricing and customer-centric services.
Step-by-step explanation:
Vision, Mission, and Strategy Applied to Amazon:
Amazon's business model and cost structure are integral to its vision, mission, and strategy, molding it into the global retail giant it is today. Its production model allows for low prices despite shipping costs, demonstrating the company's strategic approach to competitive pricing. Amazon's strategy of using economies of scale, warehousing in low-rent locations, and advanced automation with robots, enables incredibly efficient operations and cost reductions. Moreover, Amazon's transition from pure e-commerce to opening brick-and-mortar retail stores in various states represents an evolution of its strategy to reach customers through multiple channels. This strategic shift aligns with its mission to be a customer-centric company, offering convenience, variety, and prompt delivery.