Case Analysis Of Amazon

PESTEL analysis is the technique where political, economic, socio-cultural, technological, environmental, and legal factors are evaluated to identify external forces that impact market’s growth or decline. Assessment of the external environment helps to recognize key drivers and create a development strategy for the company. Political Factor International regulations are slowing Amazon’s expansion. Some countries’ regulations limit possibilities of internet purchases. However, internet providers bring faster and more affordable internet to more consumers which enable more consumers to shop at Amazon.

Amazon and Walmart, who continually invest in technology are likely to remain competitive on price, and will be able to offer services which make goods available to consumers in efficient ways, are likely to e... ... middle of paper ... ...distribution channel would lower Amazon’s labor costs, thus increasing its capacity to further reduce prices of products. As a result, traditional retailers would face even tougher competition against online retailers. Online shopping is set to radically change the dynamics of the retail industry with increased consumer reach. It is expected to continue flourishing with mobile transactions increasing and online retail sales projected to reach $434 billion over the next four years. Even big box retailers are entering in to the e-commerce market.

Amazon company is therefore part of its firms to get involved and grow in terms of social responsibility of the company. With a vast distribution network, it was able to penetrate the market of e –commerce and have a competitive advantage through its supply chain. However, despite this success, there may be some gaps and limitations in terms of integration of CSR within the company. Content Introduction 4 I- Amazon Supply chain as part of its strategic management 4 Improvement of shopping methods 4 The coexistence of a variety of business models. 5 A thorough knowledge of customer demand 5 II- Introduction to Corporate social Responsibility 6 Definition 6 Communication 6 Implementation 6 Measurement 7 III- Critique of Amazon’s performance with regard to CSR 7 Conclusion 8 References 9 Introduction World number one in its market in just 15 years, Amazon is the global leader in electronic commerce.

A cost leadership strategy is where that the price is similar or the lower rate from the products of the other companies so that Amazon can achieve the success in the competitive market. By adopting these strategies company need to know that where they want to focus, which type of services they have to increase and for the products and the services Amazon create its value for the lower cost of the product in the competitive market (Wong and Karia, 2010). Amazon have to sell the products at the low price from the other companies and the services which are provided by them they are good and the customers are satisfied by them. Then only enterprise can achieve the success in the competitive market and achieve the targets which are per decided by the entity. Amazon has doing the business in partnership with the Morrison by that company make a new products and increase their consumers.

Target is also taking advantage of a new retail format with a different mix of its growth opportunity in the same market segment offering new Target Express store and internet channels. Keep the brand promise and matching prices with Amazon, Wal-Mart, and Best Buy (Zacks, 2013). Offensive and Defensively Strategic Position: Target initiated many strategic moves to build a better market position. Target 's defensive strategy is to leverage the strength in the technology and the physical store to its advantage, pre-empt its rival in the order online, and store picks up a business model. Target 's defensive strategy to counter Amazon is, to abandon the minimum purchase for free shipping qualification to boost traffic to its online portal.

 Perception 3. “The Effects of Social Media Marketing on Online Consumer Behaviour” The inclusion of the online marketing in the whole marketing business process has increased the meaning of the business relationships and communications globally. The online marketing has evolved as the new marketing philosophy and phenomenon in order to grow the business in a dynamic and dramatic way. Today many business companies use online internet services to take benefits from the growth on international online marketing services in a dynamic and dramatic way (Iowans and Stoica, 2014). However, in online stores, the customer services could be made through communicating with chat or email support, the response for the services would not be as quick as

That’s where Amazon Go pays off. Once built fully up to certain sophistication Amazon can sell this technology to other retailers. This enables Amazon to work as a technology platform providing this services to several other grocery stores. The proposition for other retailers is even more tempting— they will be saving the labor costs which is the biggest component of the store as well as improve efficiency. In the times when labor costs are increasing and labor availability is low, this becomes a twofold benefits package for retailers.

According to Panmore Institute, Amazon’s number one goal is to become the largest online retailer in the entire world. To make this dream a reality, Amazon will need to continue to use a Cost Leadership approach with its retail segment. However, with the shipping and delivery segment, Amazon will need to surpass their current capabilities to set themselves apart from their competitors. Therefore, it will be necessary to evolve their strategic position from simply a Cost Leadership into a hybrid of Cost Leadership and a Focused Low Cost strategy. Amazon has been able to sustain an advantageous profit position relative to its rivals in large part because it has already differentiated its method of delivery.

To businesses today strategic planning is not just an idea, it defines a way to build a brand, customer loyalty, produce and grow long-term revenues which enables an organization to achieve its objectives. (David, F., 2014) Strategic management is a fundamental part of business which assists in sustainability of the business and helps create value for a business. Without the right mix of strategic planning a business can lose market share to their competitors; hence profits. Since 1994, Amazon has been paving the way for both e-commerce and traditional brick and mortar retail companies. It was 1995 when Amazon opened its virtual doors for business.

Providing the online presence is a success and the aims and objectives are met then Heritage Park will be able to expand the business a lot further and make a lot of profit. 3.2 Summary I have written this report to help the management of Heritage Park to understand what business opportunities they could possibly encounter from having an online presence and also how having a website will help to achieve the aims and objectives of the hotel and how it could attract customer interest. The problems have also been looked at of an online presence so that the management of Heritage Park can take these into account and set out a plan of how they could overcome the problems if they are to start an online presence for the business.