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Competitive analysis of amazon
Analysis of amazon
Analysis of amazon
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Amazon is number eight on Interbrand’s 2016 ranking, which is up 33% from last year to 50 billion 338 million.1 This year they plan on reaching 72.8 billion.2 Amazon is an e-commerce company offering cloud based services as well. It is an extremely customer-centric company and the largest internet based retail company in the country.3 Amazon is about innovation and bringing new technology and new ideas to their customers. With all their successes, there has been a misstep or two that has kept the company grounded. This is shown for the most part with the up and down of the stock market but overall has steadily climbed over the past year.4 Consumer confidence is a great indicator of these ups and downs. Amazon’ s corporate values have …show more content…
This included using an outside marketing company to display POP (placement of product) and train employees and customers to the benefits and advantages of the Kindle Fire HDX tablet. Reviews gave it high ratings and sales were …show more content…
Amazon will continue to expand in areas to get products to their customers faster, creating new products and expanding into new and global markets.10 One of those ways is developing an air hub in Ohio for their fleet of planes.11 This is part of the increase in operating expenses that makes the stock market nervous, but in the long run Amazon will be less reliant on other parcel services and adds to its already successful network of facilities that house their
Growth is core to Amazon.com's business strategy, and that has had a significant impact on the way they use technology: growth through more categories, a larger selection, more services, more buying customers, more sellers, more merchants, and more developers, increasing the different access methods, and expanding delivery mechanisms. The impact has been on many areas: larger data sets, faster update rates, more requests, more services, tighter SLAs (service-level agreements), more failures, more latency challenges, more service interdependencies, more developers, more documentation, more programs, more servers, more networks, more data centers. A large part of Amazon.com's technology evolution has been driven to enable this continuing growth, to be ultra-scalable while maintaining availability and performance.
Although Amazon has been active trying to find the perfect strategy to make profits, the numbers in its financial statements had not shown the most optimal results. We have discuss that even though its strategies have been right according to supply chain and logistics methodologies and theory, something had been missing to represent this successful strategies into financial results. It is seen that Amazon had spent too long time finding the right strategy which the last might be the one because in the financial statements profits started to come up. Amazon still have a long way to go to mature its strategy and represents it into profits for its shareholders.
Amazon’s macro-environment is made up of six external factors: political, economic, environmental, technological, social, and legal conditions. These factors are important because they shape how the company operates and you must know each piece to be able to compete within the retail and eCommerce industry. An evolving political factor are the efforts the government has made toward punishing offenders of cyber-crime. This kind of thief wasn’t walking into your store, but hacking into your computer. This type of crime wasn’t possible before the internet. The government has started to take these crimes more serious as technology evolves. Technology is a factor that Amazon.com must invest heavily in. They are reliant on having top of the line technology to survive against cyber-crime and to stay relevant in the tech world. ECommerce is everywhere now and competition is very high. This brings in legal conditions; Amazon must know what laws exist in which countries because they are a
Also, Amazon sells many products from many different brands and companies. The customers are most important to Amazon and Amazon knows that the delivery service is one thing that customers want the most. The way that Amazon fulfills the customer’s satisfaction of its delivery service is by having 55 fulfillment centers located in North America. Because fulfillment centers are not retail stores, Amazon products aren’t required to charge sale taxes. Along with the 53 fulfillment centers that Amazon has in North America, Amazon also has 53 distribution centers in Europe, Japan, Asia and India. Since Amazon has a lot of warehouses in many different locations, it can reach to its customers more conveniently. Amazon has been growing throughout the years has allowed its company to be able to reduce its costs. Besides being one of the top online shopping sites, Amazon has also developed the Kindle, which is now one of the most popular e-reader tablets out
Amazon has grown admirably from its initial beginnings as a small online bookseller to a giant superstore company. During this process of rapid growth, it has incurred significant losses and it becomes more expose to a greater competition and threats. Cutting costs and achieving profitability remain Amazon's greatest challenges. However, there are key factors such as a strong brand, providing customers with outstanding value and a superior shopping experience, massive sales volume and realizing economies of scale which contribute a lot to the success of this company.
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
World number one in its market in just 15 years, Amazon is the global leader in electronic commerce. Initially small bookstore in the new economy, the site is now a general distributor for food, clothing, electronic products, automotive equipment and others. Also offering many professionals services such as logistics...
Clearly, “Amazon is poised to integrate itself in Americans ' lives in ways that no other company is capable” (Matthews, 2012, para. 1). Notably, Amazon has been heavily ingrained in technology, innovation, and retail for years; they developed and expanded their business based on getting the products from the person who wants to sell to the person who wants to buy (Matthews, 2012). Comparatively, Amazon is the 56th largest company in America, the 15th biggest retailer in America by revenue, and by far the largest Internet retailer (Matthews, 2012). In 2014, their revenue topped at $89 million (Amazon.com, 2015). Technological factors and environmental scanning are evident and thriving at Amazon.
Amazon is the world’s largest retailer online. Founded in 1994 it has started as an online bookstore but soon expends its catalog with software, video games, electronics, furniture, food, toys etc.
Jeffrey Bezos, the founder and current CEO of Amazon.com, initially started the company as an online bookstore in 1994. Within several months, Amazon spread its operation to all 50 states and abroad. Presently, customers from over 45 countries buy at Amazon. Over a short period of time, the company expanded sales to electronics, video games, software, CDs, DVDs, MP3 downloads, food, furniture, apparel, jewelry, and toys. Today, the company even produces its own products such as the Kindle series. Also, Amazon.com is one of the major providers of cloud computing services. Currently, the company is the largest global online retailer responsible for 20% of online retail market share.
When Amazon.com first began in 1995, as strictly a book retailer, Bezos knew he had discovered an excellent company. After all, a physical bookstore cannot stock anywhere close to the number of books Amazon can offer online. Within a year, the company had a customer base of approximately 340,000 consumers and daily site visits were huge as well. But Bezos wanted to expand the company to offer music and DVDs, because he realized there was little or no barrier of entry. In the next years Amazon would emerge as a marketplace, expanding the company globally offering products from toys to kitchenware. Because of the relatively cheap prices Amazon was offering and also the growing number of online shoppers, the company was doing tremendous amounts of sales and creating profits.
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.
From its modest beginnings as the "World 's Largest Bookstore," till date Amazon has dominated many segments of retailing, to the extent that it has helped cause the extinction of a number of brick-and-mortar retailers.
Secondly, not only Amazon takes the most of the e-commerce, but also the M&A (Mergers and acquisitions) strategy helped Amazon to get access to the international market. In order to meet its ambitions in entering the global market, it’s necessary to take some actions to purchase some of the e-commerce corporations in the local market. Amazon purchased Chinese local e-commerce company Joyo.com in 2004 to totally enter Chinese market. M&A can help a company to increase the value generation, cost efficiency through economic scale and market share (Finance). By purchasing local corporations, Amazon could build up itself to compete with other rivals in the local market. At the same time it can also reduce some rivals by cooperating with then rather than competing.