Amazon has created competitive advantage by being able to reduce the price. Amazon is has large vendor network to get the price cheap. Since it is an online retailer and not a brick-mortar shop, the infrastructure cost is almost not there. So Amazon is able to sell the products in very competitive price.
Amazon has optimized its shipping and have been able to reduce the shipment cost. The Sunday delivery with USPS is a very brilliant move. It has a better deal with UPS.
Amazon has created advantage by just being big. The vastness in all aspects, helps reduce competition with other smaller retailers.
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