What strategies did Amazon use to compete with brick-and-mortar stores?

Amazon's success has significantly influenced the growth of e-commerce. By starting as a virtual store with a larger inventory and lower fixed prices, Amazon set a new standard for online shopping. As they expanded their product range beyond books, they demonstrated the potential of e-commerce to offer a wide variety of products, leading to more businesses adopting the e-commerce model.

Several factors contributed to Amazon's ability to offer lower prices than brick-and-mortar stores. Firstly, Amazon operates as an online platform, which reduces the overhead costs associated with physical stores, such as rent and utilities. Secondly, Amazon's large scale allows it to buy products in bulk, resulting in lower purchase costs. Lastly, Amazon's efficient logistics and distribution systems also contribute to cost savings, which can be passed on to customers in the form of lower prices.

Amazon's digital transformation significantly increased its market share. By starting as a virtual store, it was able to offer a larger inventory than most physical stores at lower fixed prices. This strategy was successful and led to Amazon expanding its product range to include DVDs, electronics, toys, software, and other goods. This expansion further increased its market share as it became a one-stop-shop for consumers.