Final answer:
Amazon's business model of low prices, faster delivery, and vast selection is built on leveraging economies of scale, highly computerized warehouses, and a customer-centric focus, which enables competitive pricing even with shipping costs.
Step-by-step explanation:
The three pillars of Amazon's business convey the idea that you can build a business around things that are stable: low prices, faster delivery, and vast selection. This approach is embedded in Amazon's production model and cost structure, allowing the firm to offer lower prices than competitors, even considering shipping costs.
By holding inventory in highly computerized warehouses in low-rent areas and using economies of scale, Amazon ensures low average costs per sale and can pass on the savings to customers, maintaining its customer-centric focus.
Amazon's focus on providing a wide selection of products, faster delivery, and low prices demonstrates their commitment to meeting the needs and desires of their customers.
By prioritizing the customer experience, Amazon has been able to build a successful business and remain competitive in the online retail industry.
Therefore answer is c. being customer-centric works very well when your main business is online.