Amazon Business Strategy

The market value of Wal-Mart is more then three times higher then their competitors. Wal-Mart has not only been able to take over the retail market, but they continue to grow substantially. Winning markets, like Wal-Mart result from an effective strategy, a continuous innovations, and efficient organization. Companies that try to have larger firms may not be successful just because they are bigger, a successful firm, such as Wal-Mart is successful because of its marketing ability which draws customers in and in turn the customers spend money. A secret success of Wal-Mart is its indirect strategies and ways to win markets without running into high costs.

Amazon has grown faster than the entire U.S. e-commerce market, therefore meaning the company has actually increased its market share by taking from its competitors (Jurevicius, 2016). Amazon created Amazon Web Services (AWS). AWS is being offered free of charge for a time to entice customers to sign up for service. Amazon set the prices to be low for AWS that is competitive to other cloud computing services on the market. There are synergies between Amazon Marketplace, Amazon Web Services (AWS) and Prime.

By using PPR the probability of hitting the bull’s eye is much higher than old fashioned advertisements. In addition I think that Facebook will continue to sell the data of its users and the price of those data will increase day by day.

From the beginning Jeff Bezos, founder of Amazon, has found it important to make a lot of money. Bezos started his company on the internet because he realized the internet was growing and he could start to make a profit from it. Amazon originally just started by selling a very wide variety of books. Bezos proved to be profitable from this because many small book stores and Borders went out of business. Barnes & Noble also took a major hit from Amazon’s growing profits but was able to stay open.

Amazon.com has a number of strengths that can help them compete with other high-tech companies. They currently are one of the largest retailers in the world. This is an extreme advantage for Amazon.com in a number of areas such as marketing, distribution, customer base and supply. With such a large presence in the e-commerce industry, this allows Amazon.com to offer more bottom-line products such as movies, music, and ebooks along with the million of other products. This makes the Kindle an even more attractive device for consumers.

It has grown rapidly into the world’s number one online retailer, with millions of products. To achieve this, Amazon has acquired a global network of distribution centers and used technology to provide consumers with access to the best products at the lowest rates. Amazon’s services have become integrated into the modern consumer’s demands for immediate (or near immediate) gratification and investors are highly optimistic about the company’s prospects. Amazon has recently been demonstrating growing revenues in a time where overall sales in the retail industry are growing much more slowly. However, this is not all that is important to an investor.

It boomed with yearly sales that jumped from $510,000 in 1995 to over $17 billion in 2011. Amazon’s mission changed to leverage technology and expertise in invaluable employees to provide customers the best shopping experience on internet and became the “Earth most customer-centric company”. The company introduced a new strategy called “Associate Program” which the goal was attracted new customers to its retail storefront and grows sales. This new strategy proves to be the most important advantage and the company’s sales revenue produced by the associates reached 40%. Another innovation announced by CEO Bezos in 2011 was shifted Amazon to tablet marketplace with the introduction of the Kindle Fire.

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. Key Success Factors and Strategies The key strategies and distinctive competencies that have led the company to success and its present position of a world leader in the Internet sales can be identified as follows. Firstly, Amazon.com employed the cost leadership strategy by offering products and services at lower costs than competitors.

Because of this online businesses can sell their products for much less by passing their ... ... middle of paper ... ... Internet shopping is expected to increase by at least 50% into the millennium, which leaves much room for growth and new opportunities for new and adventurous companies. [4] E-commerce has opened up a new market in American industry that is forcing companies to become part of the online revolution or suffer the consequences in the long run. The freedom of the Internet combined with the huge amounts of information make for a more easily accessible environment that will revolutionize the way all business is conducted in the future. Notes 1. Shop.org.

Jeff Bezos started with an idea to sell books on-line by being able to hold more books than any other brick-and-mortar store. The first mover advantage that Amazon gained has not let up since. Amazon has created customer loyalty through the use of 360 degree customer profiles and product recommendation system. Furthermore, Amazon has allowed access to big data for a monthly fee and created a web store for businesses saving on huge investments in development for a commission on sales. Big data is constantly evolving and Amazon is ahead of the curve with the application and analytics of big