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Competitive Edge in the Amazon’s Market

This paper compares Amazon’s market competitive advantage to other market leaders like, Google, and Walmart. It also looks at Amazon’s key advantages and downsides and addresses the significance and ramifications of comprehending or failing to understand the external environment. When it comes to corporate supremacy, Amazon is unsurpassed in the industry. Amazon outperforms all rivals, including some of the most powerful, like Google and Walmart. Since its establishment, Amazon has made considerable strides by providing excellent services and commodities to its clientele (Danziger, 2020). Amazon’s competitive advantages include a low-cost-of-entry strategy, diversification, and a growth-oriented strategy. In addition, every organization faces challenges; for instance, Amazon lacks a replicable business plan, insufficient market traction in emerging economies, and a physical presence. was established by Marc Lore, who previously owned, a rival to Amazon. Therefore,, in my perspective, is a competitor to Amazon since they pursue the same clientele and offer lower prices for their products.

Most firms struggle to balance their external and internal environments since they focus far too much on domestic concerns that directly impact them. Walmart Corporation was found to have infringed the Clean Water Act owing to its disdain for the surrounding ecosystem and the court-mandated it to compensate $81 million in restitution (the United States Environmental Protection Agency, n.d.). Therefore, for various reasons, a corporation must conduct research and comprehend the surrounding environment. By understanding the external environment, corporations can develop the ability to detect gaps and hazards. The external environment influences a company’s potential to generate above-average revenues. Therefore, companies must be aware of and adequately know the many aspects of their external environment to effectively deal with unpredictability, gain a competitive advantage, and succeed. Obtaining intelligence about competitors, clients, and partners is one method for businesses to understand their surroundings better. Corporations can use these new insights to generate unique-essential competencies and build a defense against imagined threats.

In conclusion, Toys R Us is an example of a business that did not understand its outer environment. Toys r Us failed to appraise its customers or to adapt to market conditions. Hence, falling behind while Walmart and Amazon developed market supremacy, with Walmart offering a multitude of commodities and Amazon dominating online purchasing (Hartung, 2017). The company failed because of a paucity of corporate strategy development, an inability to use technology, and a failure to conform to changing consumer demands.


Danziger, P. N. (2020). Amazon, already the nation’s top fashion retailer, is positioned to grab even more market share. Web.

Hartung, A. (2017). Toys R us – how bad assumptions fed bad financial planning creating failure. Web.

United States Environmental Protection Agency. (n.d.). WAL-MART II Clean Water Act Settlement. Web.

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Essay4Business. 2022. "Competitive Edge in the Amazon’s Market." November 12, 2022.


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