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What is a Retail Strategy? A retail strategy is a clear and definite plan outlined by a retailer to target a market. Retail strategies aim to build long term relationships with customers. Retail strategies outline the mission and vision of the retail organization. Elements of a Retail Strategy include the target market segments that the retailer plans to focus its retail mix and resources, the retail format to include the retail mix and a sustainable competitive advantage. The Strategic Retail Planning process includes: 1. Defining the business mission 2. Conducting a Situation Audit, Market Attractiveness Analysis, Competitor Analysis and a Self-Analysis of the organization 3. Identifying Strategic Opportunities 4. Evaluating Strategic Alternatives 5. Establishing specific objectives and allocating resources 6. Developing a Retail Mix to implement the Retail Strategy 7. Evaluating performance and making adjustments SWOT Analysis for Amazon The SWOT analysis for Amazon includes detailing the opportunities and threats in the retail environment and the strengths and weaknesses of the retail business relative to eBay and other competitors. The elements explored include: 1. Market factors to include size, growth seasonality and business cycles. 2. Competitive Factors to include barriers to entry, bargaining power of vendors and competitive rivalry. 3. Internal factors to include capability of managers, location, financial resources, merchandise, operations and customer loyalty. Strengths • Page speed. Great focus for Amazon. The time taken for a webpage to load can have a tremendous impact on user experience and ultimately sales. • Personalized Shopping Experience through initiatives such as showing recently viewed products, relate... ... middle of paper ... ...uccess has been primarily sustained by the enthusiasm of its users. One instant advantage of this is evident in the way communities of users form based on their common interests. With an increasing user base, eBay has been wise in capitalizing on that asset in other ways, especially fixed price sales. eBay’s business model is to act as a mediator between seller and buyer, taking a percentage of the sales. This frees eBay from worrying about the details, and allows the company to concentrate on maximizing its membership base and overall use of the website. In a nutshell, the underlying reason for eBay’s success is as a result of offering a shopping solution that is quite remarkable, a link between the internet and everyday life with the ability to search for a world of objects. This is conceivably the main reason which accounts for eBay’s growing profitability.
1) For a channel to succeed four location decision factors are considered; economic conditions, competition, the strategic fit, and the cost of operations. Stores need ...
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.
To recap it all, we can clearly see that Amazon has respected their value chain and by doing so created a means of delivering time after time. Demand chain and supply chain relates to how a company can gain maintain and understand how to keep their competitive advantage for a specific period in time. We have learned that amazon has brilliantly placed themselves in a position that would anchor their consumer’s future buying decisions. With the proper information, correct management and direction and support companies should follow the way this company has set themselves up to become pioneers in the e-commerce business. This inspirational company took a strategic idea and waited for the best time to act and therefore created a lasting memory on the e-commerce business industry.
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,
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
eBay has met most of its key success factors shown in Appendix 1, but must continue to focus on
Amazon.com was a venture into an emerging market of internet and had to face hidden and unexpected hurdles in order to survive and excel in the market. Therefore, Amazon.com kept modifying its strategies with their focus on enhancing customer experience of online shopping and to delivery exceptional services with complete convenience to their customers. One of the major strategic decisions was to compromise on cost saving stragegy when Amazon.com started to maintain its own warehouses in different countries in order to ensure timely and accurate delivery to their customers
People know that for the most part they can rely on Amazon.com for fast delivery and a wide selection of goods and somewhat affordable prices. Amazon.com has an efficient and advanced supply chain model, which is why they are able to guarantee quick product delivery to customers. They have strong customer loyalty due to their string customer service and unique business model. Customers freely and openly rate products and services which allows for greater customer satisfaction because customers are able to perform better product research in order to find the best fit for their needs. There are many benefits to be a strictly online business, for example having less overhead expenses compared to normal department stores with multiple locations and employees. and more money to give back to shareholders (Free SWOT). Customers can shop anywhere, anytime, and in any condition they choose. And depending on where the customer may live, they will always get their desired product within a week unless notified otherwise. It is easy to understand why Amazon.com has become a giant in the E-shopping
Growth strategy is the main means through which any organization plans to achieve its set objective to grow in level of income and capacity of its sales. The main strategies include the development of their product, diversifying, the development of market and its penetration. Amazon.com, an online retail company that provides a variety of unique products and services to its customers at cheap prices via the internet, for the past five years have tripled its sales to more than $60 billion a year. The company’s willingness to take a large hit on its margins has contributed significantly to its 35% to 40% revenue growth in past quarters. To increase the company’s income and sales, it has utilized a number of strategies (Form 10-K, 2014). This includes; investing in the growth of its digital services. This strategy is seeing strong growth and segment. Analysis shows that Amazon Web Services has operated up to annual revenue rate of over $2 billion over the past years. The introduction of new tablets such as Apple’s iPad mini and Microsoft’s surface tablet pose greater competition for the tablet market. Amazon has been able to compete in the tablet market in the past because of its Kindle e-readers that have been priced lower than the iPad. The company is investing in the online video industry. It has entered into several and expensive contracts with the aim of building digital media correction. The company has recently entered into a multiyear agreement with Viacom to license television shows, including children’s shows like “Dora the Explorer” and “BobSponge Square Pants.” (Tsukayama, 2013)
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).
Legal Factors: Amazon is following legislative constraints and changes, such as health and safety legislation. Using a range of tools and techniques helps companies make fast decisions and remain competitive in the market. Here, we will examine some of the tools used by our chosen company: SWOT analysis, PESTLE analysis, and Porter's Five Forces analysis. As we can see, the SWOT analysis is an analysis of the micro-environment of the company, while PESTLE and Porter's Five analyses are from the macro-environment of our company. These analyses help the company be aware of the market, competition, and threats to the business.
When was the most recent time you purchased something from the world of Amazon.com? Amazon is a staple provider and supplier for many people around the world, who are able to order a variety of products all in one place. Just this semester, my professor of my photography class assigned us to all order our necessities for our class via Amazon.com because they WILL have everything we need in one website or store. Amazon chooses to make the world their target market, because their goal is to have the biggest selection for every one of their customer. Currently, Amazon sells to 33 countries, including United States, India, South Africa, Germany, and Australia. This paper will detail the mission and history, financial and world sustainability, consumer
and is especially popular among eBay customers. Fig.1 briefly illustrates Company’s business. The system enables its
The Amazon was founded in 1994 by Jeffery Bezos with a sole aim of exploiting the internet to reach more and more customers given the fact that internet was increasing at a rapid phase. However, the company was at first focused on online bookstore but as it grew it invested in other goods such as electrical appliances. Currently, the company is placed in top 100 lists of fortune companies despite the ever growing competition in the online retailing business in the world today. However, the company has never fallen short of ideas, concepts, and strategies aimed at monitoring and developing plans that can put Amazon at the leading place in the global Internet retailing industry. This assignment will attempt to cover in details how Amazon can
EBay is an American internet based co-operation with its main headquarters in California. It was first set up in 1995 and has become one of the world’s most successful companies ever with ebay.com being the company’s main area of focus. Ebay.com is an online auction and shopping website where people and business have the opportunity to sell and buy goods and services worldwide.