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Approaches to Competitive Advantages for Amazon and Yahoo

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  There are a number of strategic differences between Amazon. com, Inc. , and Yahoo! The main difference, however, is how the two offer services to their customers. The latter offers consumers the ability to build their online presence through web hosting services. Amazon. com, Inc. , on the other hand, gives the consumers the ability to sell their merchandise even when they have small inventories. While Amazon offers its customers free membership, Yahoo does not offer such services. It is imperative to note these differences that lead to the two companies generating different amounts of revenue.

Amazon has had less competition as it initially majored on online sale of merchandise while yahoo focused on the sale of ads and other services. Focusing on email services and sale of ads exposed Yahoo to fierce competition from companies such as Google, which, also, majors on all the services Yahoo offers. Since Google ventured in the market offering services that Yahoo did not offer, it attracted many consumers through its Google Search and it was only after some time that Yahoo started offering the services. To say the least, the initial structure of the company was not as favorable as it seemed and therefore gave other companies an edge over Yahoo. Amazon first debuted into the market with the sale of books and later diversifying to almost every other commodity.

Since it was the first of its kind, the company was better placed when it came to establishing its brand name. The other main differences between the two companies are that Yahoo supports third party credit card processing and the use of PayPal services. Amazon, on the other hand, does not accept credit cards and PayPal services.

While Amazon is a very successful company, limiting the use of credit cards is not a good idea for a company. In addition, PayPal is a major online finance service as many people transact millions of dollars through the site. It would, therefore, be appropriate if Amazon let its consumers use financial services offered by other companies.

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