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 …show more content…
A great opportunity for Amazon to advance its business would be to create a similar payment system. Currently, Amazon does have its own system called “Amazon Payments”, however this system requires for one to use their bank account information. On the other hand, PayPal is much more advanced, and does not require a bank account. All it requires is a debit or credit card, and it also offers its own “PayPal Smart Connect” online credit card. EBay has witnessed a majority of its success from this payment system. There are thousands of online retailers who currently accept PayPal as a valid method of payment, which increases eBay’s revenue. If Amazon were to introduce a system similar to this as well, in which people are not required to give their bank information, the company would surely have a great bump in its …show more content…
The SWOT analysis will help Amazon to continue its strengths, improve shortcomings, take advantage of opportunities and develop measures to deal with threats. In other word, this will help Amazon prepare adequate solutions to maintain the leading position. Through CRM, Amazon focuses on being loyal to their customers, when they are loyal to them, they figure that in return their customers would recommend others and continue to shop with them and make future purchases. Amazon makes sure that the infrastructure is taken care of so that the retention is there. When the retention is there they will continue to grow and expand their product lines so their customers will not have to take their business elsewhere. To make sure that the customer satisfaction is taken care of they live by Sic Core Values to make things happen to make sure that everything stays in order. Amazon has maintained the mission of always taking care of the customer. They currently account for tremendous distribution systems that in some way be accounted for the success the company has since it ads real value to the service they have offered. In addition to CRM and other technologies the SWOT shows a variety of ways to overcome challenges, and add value to the company. In my opinion Amazon truly values their customers and are always working on ways to improve their products and
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
In terms of PayPal’s corporate level strategies, they have focussed on innovation where they are trying to bring new system and feature into their existing technology or product. The process is to cope up with the growing number competitions such as Apple Pay, Google Wallet and other financial institutions and providers. According to Keith Bossey PayPal was the only alternative web and mobile based payment processing provider among a field of 35 competitors to earn ‘Star’ status in their brand equity. They are the only brand used by a majority (53%) of micro to small medium sizes business and private enterprise owners around the world (Fallon, 2014). PayPal’s another corporate strategies was to connects with financial institutions around the world and allows customers to collects payments using a wide range of payment method such as Visa Credit, Online banking etc. It happens regardless of where the business and seller is being located. Despite the split from their parent company eBay in 2015. They have embarked their payment system journey through strategic acquisitions and growth in their strategies (Nunez Enterprises, 2015). At the same time their innovation and emphasis leads one of the profitable business and trying to do their best to serve consumer their services. The report show that they continue to expend their operations covering all seven continents and trying to reach as many consumers as possible to enable easy and faster payment system. According to CEO Dan Schulman PayPal will be providing “full service” to their
In the article “Amazon.com is a 21st Century Deal with the Devil”, Amy Koss of the LA Times depicts the website giant Amazon.com as the devil. Koss describes a mall that is like a ghost town with its empty stores and chained doors. (Koss 1) Koss talks about the ease of internet shopping; one can click a button and order almost anything and have it delivered right to their doorstep. (Koss 1) This article points out how internet shopping has decreased human interaction. (Koss 1) It also discusses the struggling of big box stores which often result in the loss of retail jobs. (Koss 2) In conclusion, Koss’s belief is that the “evil” internet has not only changed how humans purchase goods, but also changed the human way of life.
Analyses: For the purpose of this case study, the Balance Scorecard and Strengths, Weaknesses, Opportunities and Threats (SWOT) analyses will be used to analyze the employee culture at Amazon.com with proposals on improvement.
Amazon should look to redouble its horizontal and vertical scope using big data. Amazon should never be satisfied with the current position of the company and constantly look for places to grow. Also, analyzing big data to improve the efficiency of the company vertically is very appealing. Ultimately, Amazon should explore every avenue to expand through the use of big
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.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
Amazon model initially offered customers access to massive selection without the needs to incur cost, time and stress of opening warehouses and stores and the needs for inventory handling. Amazon realized to ensure customers get a pleasant experience and Amazon acquire its inventory at reasonable prices, they need to be in control of the transaction process from beginning to the end through operating the business from their own warehouses.
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 dollars, it held a steady growth from 1998-2006 (“Amazon.com”). From
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.
In 2002, PayPal was acquired by eBay. It has quickly become popular. Today the company offers services in thirty-eight
The internet is now used to run businesses, and keep personal business files online. People can go to the business's home page to learn more about the product. One of the most useful and popular businesses online is Amazon. By going to http://www.amazon.com, a person can shop without ever leaving their computer. By using a Visa Card, an individual can purchase books, music, clothes, toys, games, electronics, and much more.
When Amazon.com launched its online retailing strategy in 1995 and began to reap benefits, many analysts viewed doing business and shopping online with great optimism (Denise, 2004). They anticipated for a day when people would be able to order their shopping items from the comfort of their homes. Consequently, customers would see little or no need at all to physically visit traditional in-stores to make their purchases. It is now a decade and a half down the line and online shopping has taken the business world by storm with more and more companies opting to test the sweet waters of online retailing. Analysts foresee a rapid growth of online shopping in the next decade or so though some reports still show a significant number of consumers across the world who have never attempted to do their shopping online. The growth in popularity of online shopping points to the presence of certain advantages, which are not available in traditional shopping. At the same time, it alludes to the existence of differences between the two types of shopping. This paper shall discuss the growth of online shopping around the world and provide statistical evidence of this growth in the United States, Australia, and the United Kingdom. It shall also elucidate the differences between online shopping and traditional shopping.