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  • Essay / Amazon Cost Leadership Strategy - 1414

    Supplier power is medium-high. Amazon has access to several goods and products from several companies and businesses around the world. Suppliers have medium power because much of Amazon's inventory can be obtained from other suppliers. Suppliers have even greater power because Amazon cannot compete with its suppliers. Therefore, Amazon relies heavily on its suppliers for its products and profits. Amazon certainly has its disadvantages because of this aspect, but it also has its advantages in that Amazon can control many of its smaller suppliers. Amazon minimizes its inventory to small businesses to reduce costs. Additionally, businesses do not invoice Amazon until the product is sold and Amazon pays businesses 35 days after the product is sold.