Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
What are the chief elements of Amazon’s overall competitive strategy? How well do the pieces fit together? Is the strategy evolving
Strategies that amazon.com use to create customer value
What are the chief elements of Amazon’s overall competitive strategy? How well do the pieces fit together? Is the strategy evolving
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Introduction
Amazon
Amazon.com, Inc. (Amazon.com), incorporated on May 28, 1996, serves consumers through its retail websites and focus on variety, price, and accessibility. The Company bids plans that enables sellers to sell their products on its Websites and their own branded Websites and to accomplish orders through them, and programs that allow authors, musicians, filmmakers, application creators, and others to publish and sell content. The Company operates in two segments: North America and International. The Company schemes its Websites to allow millions of products to be sold by the Company and by third parties across masses of product categories. Customers access its Websites directly and through its mobile Websites and apps. It also manufactures and vends Kindle devices. In May 2012, the Company attained Kiva Systems, Inc. (Kiva). In October 2013, Amazon.com Inc acquired TenMarks Education Inc. Effective February 5, 2014, Amazon.com Inc acquired Double Helix Games LLC.
The Company offers its customers the lowest prices probable through low everyday product pricing and shipping offers, including through membership in Amazon Prime, and to improve its operating productivities so that it can continue to lower prices for its customers. The Company also provides easy-to-use functionality, fast and dependable fulfillment, and timely customer service. It offers programs that allow sellers to sell their products on its websites and their own branded websites and to realize orders through them.
The Company serves creators and enterprises of all sizes through Amazon Web Services (AWS), which provides entree to technology infrastructure that enables almost any type of business. The Company serves serve authors and independent publ...
... middle of paper ...
...sedly if these both don’t offer customers expectations then these both will be out of the battle, when compared to other online retailers who offer customers expectations fully. Furthermore, to win over the dominance battle, frequent sales and promotions are also a key factor that should be offered and can have a big impact on shoppers purchasing decisions, for instance it can influence them to purchase items not on their shopping list, causing the retailer to dominate in the dominance battle.
Finally, along with offering such values and customers perceived expectation, if Amazon and Walmart come up with premium cards that offer more offerings like further reductions, free delivery and bonus point, upon which free shopping is offered, than the one who offer better or more offers from among Amazon or Walmart will be at higher chances to win the battle for dominance.
History”, n.d.). But the unbelievable pace at which Amazon added new products and new customers proved to be a formidable barrier for any competitors. Within the first 10 years Amazon accomplished an unbelievable feat; it had 49 million customers and 6.9 billion dollars in revenue, and it had done so by selling some products at a loss to build market share (Rivlin, 2005). At times it was difficult leveraging so much capital to grow market share, but Jeff Bezos’ focus on the customer and long term growth of the company proved to be the real reason Amazon didn’t fall prey to the .com bust like so many other internet
Amazon.com’s US operation business model is based on “sell all, carry few”. Amazon offers consumers a wide selection of products while keeping inventories at low levels. A major interest for Amazon in the US is optimization of netwo...
Amazon is best known for their kindle, fast shipping, and selling various products (Smith). With Amazon being such a large corporation, professionalism, academics, character, and engagement are crucial parts of the success of the company. Professionalism: Amazon has grown to become the largest internet-based retailer in the world by total sales. It began as primarily an online bookstore and soon began to sell more and more electronics and then over time began to sell pretty much anything. In 1998, Amazon earned about $0.6 billion, which held steady growth from 1998-2006 (“Amazon.com”).
Treanor, T.. (2010). Amazon: Love Them? Hate Them? Let's Follow the Money. Publishing Research Quarterly, 26(2), 119-128. Retrieved February 24, 2012, from ABI/INFORM Trade & Industry. (Document ID: 2377177581).
Since the creation of Amazon in 1995, it has been a reference of adopting a successful strategy which has preserved over time; being the largest online store in the world nowadays. In addition, i...
Launched by Jeff Bezos, the Amazon.com website started in 1995 and is today considered as one of the most prominent retail website on the internet with a record turnover of US$ 14.87 billion in 2007. Jeff Bezos’s intention was to create an internet based company with the most dedicated product portfolio on the internet where customers could find anything they might want. Amazon’s success is based on technology, services and products (Jens et al., 2003).
Amazon has been able to maintain sustainable competitive advantage based on three operational strategies. These are low cost-leadership, customer differentiation and focus strategies. Low cost-leadership is pursued by Amazon by differentiating itself primarily on the basis of price. By offering low prices to customers Amazon ensures its future success. Partially modifying the costs of lowering prices over time through achieving higher sales volumes, negotiating better terms with suppliers, and achieving better operating efficiencies. Amazon makes sure that it offers the same quality products as other companies at a considerably cheaper price. Another strategy that Amazon has is its fast delivery service and there are many delivery services that one can choose from. With Amazon Prime, there are certain, but many products that have free two-day shipping. Also, with Amazon Prime, there are many offers specifically for people that have Amazon Prime. For example,
Amazon has recorded a magnificent success in its business throughout the years that it has been in operation. It has attracted almost all people to use it when necessary. Amazon has built its success in business methodically and slowly. Amazon has made much success because of its ability to read market trends and diversify its operations. It started as an online book selling company. However, it changed its operations and started selling other products. Currently, many large retail shops use Amazon to host and power their websites, for instance, sears and virgin megastores. Amazon now attracts over fifty million visitors in a period of one month. Amazon has tried to make their services fit each individual user. It has based its services on the end user. It has shipping discounts, customer product reviews and a credit card with bonuses. It also has prime membership, product forums and 1-click ordering system among other services. The company has tried to make a remarkable experience for customers and visitors (Thomas, 2006).
Amazon.com creates value for its customers by offering customers broad array of products to select from through their website and ensuring timely delivery of products to exhibit high level of commitment towards their business and customers
Competition – The biggest competitor of Amazon is EBay and all the internet retailers and suppliers as Priceline.com; Buy.com; BN.com and many more.
Thirdly, the company is committed to delivering superior quality of products and services. It earned a reputation of a convenient and reliable brand that offers the lowest prices, one of the fastest and lowest shipping, widest selection of goods, and many additional features with its services.
Amazon.com, as an e-commerce website has emerged as a leader in the e-business world. Originally, the company began as a website that sold books at discount prices, now Amazon.com has evolved into a marketplace for the world. Jeff Bezos, the founder and CEO, has changed the business model of the company many times. He is focused on expanding the selection of goods and services offered on the website, in an attempt to please customers. However, he is having trouble managing the priorities of his gigantic company, he should give the existing categories priority and worry about expansion at a later time.
Another part of Amazon’s retail strategy is to serve as the channel for other retailers to sell their products and take a percentage of cut of every purchase. Amazon does not have to maintain inventory on slower-selling products. This strategy has made Amazon a ‘long tail’ leading retailer, expanding its available selection without a corresponding increase in overhead costs.
Amazon’s also tried to spearhead the industry by introducing the customer-pleasing traits in terms of the technology, order fulfillment and retailing strategies categori...
One of the greatest opportunities for Amazon is an Online Payment System. The online system allows the company to reduce transaction fees and increase ease of use for their customers. Internet sales are increasing at a fast pace. This is a product of increased fuel prices, which make driving to a store less likely, and foreign purchases. This development allows foreign purchases to buy clothing as it becomes more popular abroad. Amazon’s biggest competitors can include retail stores that online stores such as Target, Best Buy, and Walmart among others, these can be considered the most dangerous for them since they have strong market share and can be a direct competitor since they attack the same market. Amazon wish to compete in prices, offering