Amazon Prime is credited for helping to increase the Amazon stock price by nearly 300 percent from 2008 to 2010.This competitive advantage is known as
A) causal ambiguity.
B) product rarity.
C) service validity.
D) substitutability.

Question

Quizplus · Accepted Answer

Causal ambiguity means that would-be competitors may be thwarted because it is impossible to disentangle the causes (or possible explanations) of either what the valuable resource is or how it can be re-created. The continued success of Amazon as the largest global online marketplace is an example of competitive advantage through causal ambiguity. Competitors recently tried to imitate the Amazon free shipping strategy but with limited success. The reason is that Amazon has developed an array of interrelated elements of strategy which their rivals find too difficult to imitate.

Amazon Prime Is Credited for Helping to Increase the Amazon