Posted: May 24th, 2022
Amazon VRIN Test
Amazon is one of the leading enterprises in the world in terms of financial resources, market capitalization, and market penetration (Alshmrani, 2021). As one of the top companies globally, there is a need for the enterprise to implement effective strategies if it expects to increase its performance and maintain the competitive advantages it has. This study examines the firm based on the VRIN Test. The exploration aims to detail the factors that contributed to the performance of the enterprise by basing on the VRIN Test.
Amazon has various resources and capabilities that are valuable. The enterprise has businesses in different segments of the market or industries. The business resources or the types of business the enterprise is involved in include entertainment services, offering web services, selling products on the online marketplace, offering logistical services, and hosting the Amazon store. According to Alshmrani (2021), the company’s resources have enabled it to implement strategies that have enhanced its competitiveness. Its enormous size is thus a valuable resource it has.
The company has various rare capabilities, including having operations globally, offering multiple products under one roof, being a technological leader, having an efficient logistics and supply network, and being an innovator in various fields (Alshmrani, 2021). The enterprise’s rare capabilities have enabled it to be one of the most significant players in the global market. The firm has created an effective online marketplace that allows it to effectively use its rare resources and capabilities (Amazon, n.d). The company should continue using its rare resources and capabilities to increase its performance further.
Inimitability of Resources and Capabilities
The technological innovations and the distributions systems the firm has implemented for its global operations are complicated and costly to imitate. The company offers various products in its marketplace and an efficient logistics and supply system. The order fulfillment rate has enabled the company to have loyal customers and increased sales (Alshmrani, 2021). The online marketplace designed by the company is effectively done to make it easier for the client of the enterprise to quickly find what they are looking for (Amazon, n.d). Also, the business has an effective customer management system that has enabled the company to increase its performance.
Non-substitutable Resources and Capabilities
The company does not have any resources or capabilities that can be considered non-substitutable. The enterprise has several competitors, including E-bay, Alibaba, and Walmart. Despite several competitors in the market, it is worth noting that the company is the leading player in its market (Alshmrani, 2021). Other than the major players in the online marketplace industry, the corporation is also faced with competition from other players in the different sectors it has businesses. The ability of other enterprises to imitate the company’s resources and capabilities means that it does not have an absolute advantage in the fields it operates.
This study examined how the VRIN Test explains the competitive advantages Amazon Inc. has in the areas and business sectors it has effected operations. The study has found that the company offers various products to the market, including entertainment services, offering web services, selling products on the online marketplace, offering logistical services, and hosting the Amazon store. The products offered by the enterprise have enabled it to have particular competencies under the VRIN Test, as discussed herein. However, its competencies are not absolute as the company has many competitors.
Alshmrani, H. M. (2021). An analytical view of Amazon’s success worldwide. Life Science Journal, 18(6).
Amazon (n.d). Who we are, What we do, Our Workplace, and Our Impact. Available at https://www.aboutamazon.com/?utm_source=gateway&utm_medium=footer
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