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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.
In addition to Amazon great physical networking presence with all of their warehouses they also have a great delivery network that allows businesses to sell their goods through Amazon. Having many warehouses spread out helps getting products delivered quicker and cheaper than many smaller businesses can. Smaller businesses sell their goods via consignment with Amazon. Selling their goods using Amazons delivery and website services helps keep cost for small businesses down despite the fees paid to
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 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.
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.
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.
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
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.
Amazon 's extended marketplace of individual vendors, to the fulfillment and warehousing services it offers to its partners, to its very convenient returns policy, to Prime itself, Amazon has constantly innovated both horizontally (across product areas and business policies) and vertically (over supply chain and distribution).
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
In conclusion, Amazon has embraced innovation. The company has not had worries with the use of innovation. They use innovations as measurements and end up with flourishing business ideas. They experiment, learn through outcomes and try new ways of doing things. They have put the customer as their first priority. Everything that the company does gears towards attracting customers through quality of services, availability of products, assurance of delivery and addressing customer feedbacks. These factors have helped the company become a multinational and a multimillion company where customers flock everyday.
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.
Secondly, Amazon.com expanded internationally, pursued strategic acquisition and bought new firms to bring new services, assets, capabilities, services, and skills.
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...
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.