Amazon's Use of the Internet as a Platform to Sell

question 53

Multiple Choice

Amazon's use of the Internet as a platform to sell books more efficiently than traditional bookstores illustrates which of the following strategies?

• A)Low-cost leadership
• B)Marketing effectiveness
• C)Focusing on market niche
• D)Strengthening supplier intimacy
• E)Developing synergies

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Definitions:

Fixed Costs

Financial obligations like rent, salaries, and insurance that do not vary with changes in production or sales figures.

Utilization Rate

Typically refers to the ratio of currently used resources to the total available resources, often used in the context of credit utilization or operational capacity.

Net Income

The total earnings or profit of a person or company after deducting all expenses and taxes.

Variable Costs

Expenses that fluctuate based on the amount of products or services a company generates.