Amazon Business Strategy

886 Words4 Pages
Amazon is one of the largest online retailers in the world. The company reported better-than-expected second quarter results surpassing our estimates on revenues and earnings. Amazon is driving value across all its businesses and especially the retail business remains very hard to beat on price, choice and convenience. The company has a solid loyalty system in Prime and its FBA strategy, and content addition continues to add selection to Prime memberships. The AWS generates much higher margins than retail, so it has a very positive impact on Amazon’s profitability. Devices and IoT is also a potential growth area. However, Prime saturation in the U.S. market and competition in online retail remains concern.

Amazon.com is one of the largest e-commerce companies in the world. Although the primary product line was books at first, the company rapidly diversified into a host of other product
…show more content…
Recent news stories from Reuters, Bloomberg and others show that the company’s Chinese arm (Beijing Century Joyo, which it acquired some years back) has filed with Chinese authorities as a handler of goods bound for ports in Japan, Europe and the U.S. In the U.S. it is registered as an ocean freight forwarder. Amazon has also said in a recent SEC filing that it considers companies with fulfillment and logistics services for themselves or third parties its competitors. The media reports also say that Amazon has a grand plan for a global distribution system wherein it will pick up goods directly from sellers and ship to end customers. The huge volume of goods it will thus handle will fetch wholesale discounts, which when transferred to small or medium sized sellers will make Amazon highly competitive. Amazon has been investing heavily in fulfillment centers, trucks and containers and its Fulfillment by Amazon (FBA) service has been doing well. It recently bought some planes and also has self-designed drones in the
Open Document