Question

When analyzing the book store industry, some of today's businesses compete with different business strategies and cost strategies. Which of the following is using a broad market competitive scope along with a low-cost strategy?

A. Amazon.com.
B. Any local independent book store that specializes in antique books.
C. Barners & Noble.
D. Target.

Answer 1

The correct answer is letter "A": Amazon.com.

Step-by-step explanation:

The market competitive scope refers to the different value chains in which a company is engaged. Firms' competitive scope is classified as narrow when there are not many value chains within the company's operations. If it is broad, it implies the competitive scope of the institution includes a large number of value chains.

Amazon.com is an example of a broad market competitive scope since it includes in its value chain Business-to-Customer (B2C) and Business-to-Business (B2B) structures. Besides, it plans to implement a delivery system using drones, uses "Alexa" as an Artificial Intelligence (AI) voice shopping service and Augmented Reality to determine how products may fit. All this is done without exponentially increasing the price of the services provided.