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Main risks going forward for Amazon.com are to loose its competitive advantage because of opportunities that Internet offered to its competitor : low prices, deliver, costumer’s service, etc.
Moreover, if the business develops, it may encounter logistical problems and limits : geographical and logistical constraints (energy, delivery and connection and some contries) and legislative constraints (censorship, taxes and state agreement : Corea, Sri Lanka, Indonesia, etc).
Founded in 1994, Amazon started as an online bookstore and quickly became popular as it received high marks on several Internet rankings. Today, Amazon.com, Inc. is the world's largest online retailing company headquartered in Seattle, WA
During the period 2007 to early
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Media
In 2007, thanks to a lot of investments in research and development, he has developed an innovative wireless electronic reading called Kindle. In 2009, Amazon launched Kindle 2, an improved version of the original product with longer battery life and a new “Text-to-Speech” feature (listening to books).
Amazon launched a MP3 Music Store, a digital music downloads store. Then it launched two music stores : Classical Music Blowout Store and Go Indie Music Store. The last one provided music buyers with hundreds of titles from more than 30 independent music labels.
Amazon made Digital Rights Management (DRM-free) MP3 music downloads from Sony Music Entertainment available to customers on Amazon MP3. Amazon MP3 became the only retailer to offer customers DRM-free MP3s with over 33,000 independent labels.
In the same way, the company launched a New Artists Store featuring comprehensive artist content, including full album discographies, CDs, DRM-free Mp3 and vinyl catalogue selection.
In 2008, Amazon’s subsidiary IMBb.com announced that users could watch over 6000 films and TV episodes for
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Amazon Web Services (AWS) was upgraded with Microsoft products such as Microsoft
Amazon Web Services (AWS) launched Amazon CloudFront, a high performance, self-service, pay-as-you-go method of distributing data over the internet.
Amazon Web Services (AWS) introduced Public Data Sets which enabled developers and researchers to cost-effectively create, share and consume sets of data free of charge.
Amazon launched Amazon Currency Converter, to pay purchases in the currency of customer’s payment card, instead of US dollars.
Amazon launched “Bill Me Later” for its customers to complete purchases instantly online without using a credit card.
Amazon launched Amazon TextBuylt, customers can use text messages to find and buy products sold on Amazon.com.
Amazon unveiled the Software Espagnol Store, a new category store featuring Spanish language and bilingual software products.
Amazon Payments announced the general availability of Amazon Flexible Payments Service (FPS). It allowed developers to accept payments from Amazon’s millions of customers and enabled developers to monetize their innovations
Within each Amazon VPC, the company uses 20 to 40 Amazon Elastic Compute Cloud (Amazon EC2) instances running in a high-availability cluster with an Active-Active failover configuration across two Availability Zones. Elastic Load Balancing automatically distributes traffic across the Amazon EC2 instances to ensure no single instance is overused. Amazon Route 53 manages public-facing domain name services records and ensures the services backing them are operating properly. Benefits
The opinion piece published by the Los Angeles Times, “Amazon.com Is a 21st Century Deal with the Devil,” by Amy Koss states her central argument that Amazon is destroying jobs, malls, and stores in the outside world. I strongly disagree with the statement that Amazon is destroying jobs and stores because I believe Amazon brings convenience by allowing people to sell things they might not need that others do. According to Koss,” I also think that it is at the convenience of consumers who have a difficult time going outside because of a medical issue or if they’re just lazy because of the fact that they can order something and have it delivered to them in less than a few days with an even cheaper price tag. Online shopping on Amazon allows others to earn jobs as well because they might work from home and work for Amazon or they might deliver items to the consumer. Some people may even start their own online selling business on Amazon.
Amazon is no exception. Amazon uses big data services to analyze consumer trends, marketing strategies, planning the development of new products, and other insights related to marketing their products and offerings.
Edward Lampert “The ineffective leader in retail segment” In this document the author will analyse the leadership qualities of Edward Lampert on the basis of his performance in Sears. Leadership can be defined as the ability to lead and organization or a group of people and help them to achieve their objectives. Effective leaders build strong communication bond with the employees and they also help the organization to increase its revenue and sales. Emotional intelligence is also an added quality of effective leaders (Batool, 2013).
Political Forces: The political stability is very important for the business to grow and last, according to that if the business has been operated in a politically unstable area, or in a country that is under a threat of wars that will lead to a loss for the business. Politics and governmental interferes is an important issue that is facing businesses and became a barrier in many situations. GAP Inc.
Capacity planning This is the process of knowing the production capacity an organization needs to meet the changing demands for the products. It helps to determine the quantity of the product needed by a firm to meet the demands of its customers. The capacity planning elements for Walmart are; facility, product and service, and human resource.
Today, many people prefer to order products from Amazon instead of going to stores or malls. c. DESCRIPTION OF MY SUBJECT (AMAZON.COM): Amazon (Amazon.com) is the world’s largest online retailer and a prominent cloud services provider. The company was initially a book seller, then later it expanded to sell a wide variety of consumer goods and digital media as well as its own electronic devices, such as the Kindle e-book reader, Kindle Fire tablet and Fire TV, a streaming media adapter (Rouse, 2018).
Many states within the United States have passed online shopping sales tax laws which have been designed to compel Amazon and other e-commerce retailers to collect both state and local sales taxes from their customers. In 2011, it was noted that Amazon only collected sales tax from five states, however in April of 2017, it was said that the company must collect sales tax from consumers in all states that currently have sales taxes. ANALYSIS OF STRATEGIC FACTORS In a December 2011 article written by Forbes contributor, Venkatesh Rao, he states that “the company [Amazon] is nothing if not deliberate and systematic in everything it does.” Rao goes on to say, unlike the other big companies that symbolize our times – Google, Apple, Facebook and Microsoft, Amazon did not rise to power by inventing a new product or service.
Amazon has achieved many milestones from starting in the founder’s garage in 1994 to the growth in revenue to US$147.8 million in 1997 and then to the revenue growth of US$177.866 billion in 2017 (Amazon, 2018a, Amazon, 2018b and Jurevicius, 2018). These milestones were achieved through tenacious focused strategies of meeting their customers’ needs and wants. These strategies have maintained and expanded their customer base locally and internationally and have increased its market shares and profit over the last two decades. In addition, projection for the company’s growth and expansion for the next three to five years looks positive as it predicted to grow at the same rate with its expansion internationally and continued focused in satisfying consumers’ wants (Amazon, 2018a). Although, some factors such as governmental policies, legal issues and natural disasters could pose a threat to Amazon’s growth plans, the management team led by the founder and Chief Executive Officer (CEO) are working on mitigating the risk (Amazon, 2018a).
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
When the hype around c-currencies settles down and the volatility decreases, such currencies as DASH and Ripple may be used as the payment options in there. Moreover, there are many rumours about Amazon launching its own crypto in the nearest future. If it happens, well… We’ll see two main lifechangers for the crypto-world: Amazon and Telegram. We’ll find the way PR-managers, don’t you close your AdWords tool-kits yet. Until June, you have a plenty of time to advertise your products.
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. There are big companies with deep
Amazon’s competitive strategy is cost leadership. Amazon has achieved a lot on a great scale that it gets the best prices from its vendors so they can operate in very flexible and thin margins and sell their items easily at retail prices and make money. They also provide shipping products for a reasonable cheap price. They also have improved their warehouses by giving some space to other sellers who want to sell their items through Amazon. They differentiate and provide better quality than their competitors across the industry.
Walmart, Amazon, and EBay 1. Analyse each of these companies using the value chain and competitive forces models. The value chain model of Amazon in itself is internally and operationally the best that adds value and maintains competitive advantage. The primary activities include Inbound logistics for example quality control, receiving, raw materials, control and supply schedules; Operations for example packaging , maintenance, quality control; Outbound Logistics for example
Amazon is a domination force that all other retailers have to compete with and they will only get better. When they began to dominate the market, some retailers followed suit and increase their online presence like Walmart and EBay. They even began to lower their prices to compete with Amazon. This resulted in several other retailers, who did not