importance of the company’s competitive advantage

Is the company’s competitive advantage sustainable? Are there any barriers that make imitation of the

fficult?firm’s strategy di

mortar retailers is under way, particularly in commoditized -and-A shakeout among traditional brick

categories. With nonexistent customer switching costs and intense competition, we’ve already seen Circuit

Shack exit the retail landscape, while names like Barnes & Noble, City, Linens ‘n Things, Borders, and Radio

Sears, office superstores, and a host of other retailers struggle to reverse deteriorating fundamentals. Market

-n this trend, as have directconsolidation among mass merchants like Walmart and Costco has played a role i

equipment manufacturers like Apple and Samsung. However, we -consumer investments by key original-to

view Amazon as the most disruptive force to emerge in retail in several decades. Its operational efficiency,

d laser focus on customer service provide it with sustainable competitive advantages that network effect, an

traditional retailers cannot match; this should yield additional market share gains in the years to come.

d AWS), and content investmentsDespite ongoing fulfillment, technology (hardware devices an

The American Customer Satisfaction Index recently announced the results of its annual survey, and for the

year in a row customers ranked Amazon #1. The United Kingdom has a similar index, The U.K. Customer th 8

time in a row Amazon U.K. ranked th Index, put out by the Institute of Customer Service. For the 5Satisfaction

#1 in that survey. Amazon was also just named the #1 business on LinkedIn’s 2018 Top Companies list, which

fessionals in the United States. And just a few weeks ago, ranks the most sought after places to work for pro

Harris Poll released its annual Reputation Quotient, which surveys over 25,000 consumers on a broad range of

year in a rd for the 3 topics from workplace environment to social responsibility to products and services, and

row Amazon ranked #1.