The closest competition, Walmart, does most of their business in an actual store. Amazon dominates e-Commerce, the sole reason why people think the company could be a monopoly. However, The company does not fit the definition of a monopoly. As long as prices do not go up, consumers do not suffer, and competition challenges Amazon, the company does not fall under the category of a monopoly. The fact that no one has seen anything like Amazon before makes people worried; this produces people into believing that the five- hundred and sixty billion dollar company has control of the economy, thus forming a monopoly.
Amazon Name Institution Date Amazon Executive Summary Amazon is a giant in the online retailing business. The organization’s strengths include the minimum structure and cost strategy, product diversity, a structured delivery system and its customer-oriented policies. The company offers clients a wide range of products at lower prices compared to its competitors. Weaknesses are large debts, product failure, tax evasion, reduction in margins and losses due to free shipping. Tax evasion gives Amazon a bad reputation; for this reason, some potential clients do not want to be associated with it.
The Amazon vision statement is “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online (Amazon.com). There are three important characteristics such as Global reach, Customer prioritization, and the widest selection of products. Global reach with Amazon is to make the company globally with authority in a e-commerce retail online. Customer prioritization is the customer is the most important people and comes first in the online business. Amazon’s vision statement is to continue on increasing the product lines and keep on growing the markets.
3.3 Customers and Competitors Customers Amazon customers consist of upper & middle class social groups who have inclination towards using E-commerce portals and are comfortable with online shopping. Majority of the customers are professionals or businessmen who are busy with their business/Job & find it convenient to purchase anything online rather than visiting the physical outlet in order to save time & money. Furthermore, the customers might also be the ones who are searching for deals. Due to this, the portal is known to have specific days where they give massive discounts to their buyers. Competitors The giant companies that want to disrupt Amazon Amazon isn’t under attack from just start-ups, though.
The components of this marketing mix enable competitiveness and international growth while Amazon.com Inc. innovates its services. Amazon.com Inc.’s Products (Product Mix) In this component of the marketing mix, Amazon’s products or product mix is considered. As the top player in the online retail industry, the company offers a wide selection of products. Such a product mix supports Amazon.com Inc.’s mission statement and vision statement. Through continued expansion and diversification, the company’s products now include not just online retail, but also a variety of other products that address market needs: Retail
Product flops decreased amazon revenue and the initiation of the kindle fire was not successful as expected. Opportunities in the SWOT analysis of Amazon. Global expansion, Amazon has no market in Asia and Africa not because it lacks customers, but because it has not widened its networks in these parts of the globe. There is a greater advantage for Amazon to acquire market in these areas as their economies are growing, the market is not saturated and there are less competition Acquisitions, by acquiring E-commerce companies it can decrease the competition level and also can use the specialized capacity of the other company ("Amazon Case Study Analysis", 2016). Establishing physical stores out of the United States, this will increase the safety for deliveries when goods do not reach the required customer, but also improve customer relationship as they will be physically engaging with the
However, Amazon has advanced websites and high brand recognition that other competitors may not reach its level. ii) Threat of substitutes The book publishers can publish the books and distribute them directly to the public. iii) Power of buyers Amazon experiences a low buyer power since the book items can’t be bargained since the prices are fixed. iv) Bargaining power of suppliers The suppliers have low bargaining power since the company is large and can compel the suppliers to offer discounts for the popular titles. v) Entry by rivals Although rivals can enter the market of Amazon, the company has already reached the biggest global marketplace and there are many visitors to its website.
Market Development is a crucial aspect in Amazon’s competitive strategy. The use of its existing products for capitalizing on new market areas through its core competencies such as faster delivery time, new channels and distribution methods have facilitated greater market expansion for Amazon. Amazon Fresh offers same-day delivery service on grocery food items and toiletries while Amazon Prime provides a free two-day delivery service on purchases and access to a library of streaming movies and music where customers pay an annual subscription fee of $99 US/£79 Britain for the service. Amazon Prime members also have access to free deliveries on Sundays as well. Amazon recently partnered with Britain Fashion retailer AllSaints to offer Prime members free next-day shipping, where Amazon charges the company for every time their customer clicks through Amazon.com resulting in additional revenue.
Amazon is extremely market-oriented. For instance, Amazon was positioned by its leader as global customer-centric company where virtually anything that people are looking for can be successfully found and ordered. The most attractive sides of Amazon‘s business strategy are low prices, vast selection, and more importantly convenience for their customers. Therefore, with these strong qualities, the company continues to grow as a world-class web commerce giant. Also, among Amazon’s advantages is its infrastructure.
Amazon Amazon is an American multinational e-commerce company and it was established in 1994 by Jeffrey p.Bezoz and it’s the largest online shop in the world. When there were a numerous of online retailers that were not able to survive in 1990 amazon managed to survive in that time. It 's the 11 'st most searched site the world over also amazon acquired many online retailers such as “pets.com, IMDb, CDNow”. Jeff bezos the founder of Amazon converted his garage into a warehouse and then Jeff Bezos was able to establish the Amazon as an online retailer while concentrating on core values . When books started selling, Amazon extended to selling other items.