Bbaw 2003051

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Taleb Salem Naser Saleh Alseiari

Bbaw2003051

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Let's choose Amazon as the digital business to analyze using the VRIO framework and
suggest innovative solutions.

1. Critical Analysis using VRIO Framework:

Value: Amazon offers a wide range of products and services, including e-commerce, cloud
computing (Amazon Web Services), digital streaming (Amazon Prime Video), and AI-
driven voice assistant (Amazon Alexa). Its customer-centric approach, fast delivery, and
competitive pricing add significant value to customers.

Rarity: Amazon's extensive fulfillment network, cloud infrastructure, and customer data
analytics capabilities are relatively rare in the industry. Its Prime membership program,
which offers various benefits such as free shipping, exclusive deals, and access to
streaming content, is also a rare asset.

Imitability: While some aspects of Amazon's business model, such as e-commerce and
cloud computing, can be imitated to some extent, replicating its extensive fulfillment
network, scale, and customer loyalty is challenging. Amazon's investments in technology
and logistics create barriers to imitation.

Organization: Amazon's organizational structure, led by founder and CEO Jeff Bezos until
his retirement, emphasizes long-term vision, innovation, and customer obsession. Its
culture of innovation, decentralized decision-making, and continuous experimentation
contribute to its organizational capabilities.

2. Innovative Solutions:

Drone Delivery: Implement drone delivery technology to enable faster and more efficient
delivery of packages, especially in rural or remote areas where traditional logistics
infrastructure is limited.

Physical Retail Innovation: Expand Amazon Go stores and other physical retail formats
that offer cashier-less shopping experiences, leveraging technologies such as computer
vision and sensors to enhance convenience for customers.

Healthcare Expansion: Further expand Amazon's presence in the healthcare industry


through initiatives like Amazon Pharmacy and Amazon Care, leveraging its logistics
expertise and customer trust to disrupt the traditional healthcare delivery model.

Conclusion

, the application of the VRIO framework to analyze Amazon, a prominent digital business,
reveals several key insights into its competitive advantage and potential for future growth.
Through critical analysis, we identified Amazon's value proposition, rarity of resources
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and capabilities, barriers to imitation, and organizational strengths. Amazon's customer-
centric approach, extensive fulfillment network, and technological innovation contribute
significantly to its competitive advantage in the digital landscape.

Moreover, by suggesting innovative solutions such as drone delivery, physical retail


innovation, and healthcare expansion, we underscored Amazon's potential to further
capitalize on its strengths and drive continued success in diverse market segments. These
solutions leverage Amazon's existing resources and capabilities while exploring new
avenues for growth and differentiation.

Overall, this analysis demonstrates the importance of strategic evaluation using


frameworks like VRIO to understand a digital business's competitive position and identify
opportunities for innovation and improvement. By synthesizing critical analysis with
forward-thinking solutions, organizations like Amazon can navigate evolving market
dynamics and sustain their leadership in the digital economy.

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