There are millions of businesses operating in the United States and on a daily basis hundreds of businesses are opening and closing. These business consists of individually owned businesses, small and medium businesses as well as large scale businesses. For the research purposes I have selected the Amazon Web Services (AWS), which operates as a cloud computing arm of Amazon.com Inc. I have selected the cloud computing because I am a technology enthusiast and wanted to learn how technology joints compete in this emerging field of business. Below are the major findings:
1. What is the name of the business?
The business name is Amazon Web Services (AWS) which is cloud computing arm of Amazon.com Inc.
2. Which industry does the business operate in?
Amazon
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This is because the cloud computing is currently dominated by the small number of large technology companies (i.e. Amazon, Microsoft and Google) with other players with small market share. There are some barriers to entry i.e. large amount of capital needed to setup the cloud computing capable datacenters, and also the ability to hire thousands of employees to support the cloud computing operations which some firms can afford.
6. Briefly explain what influences the supply of labor used in this business?
Labor supply in the cloud computing business is influenced by education & skills level. this is because the cloud computing is emerging field and new standards continue to emerge which fuels the need for greater education and trainings, so the labor market is highly influenced by the skill and education. Another factor is the mobility of labor because the cloud companies need to set several data centers to support the global scale operations and oftentimes there is limited supply of cloud computing experts and the supply largely depends upon the occupational mobility of labor.
7. Briefly explain what influences the demand of labor that this business
Every business depends on its employees and workers, without them there would be no mass quantities of the product, or
Slow speed will give more time while fast speed of technological disruption may give a business little time to cope and be profitable. Technology analysis involves understanding the following impacts: Recent technological developments by Nordstrom competitors Impact on value chain structure in services sector Technology 's impact on product offering Impact on cost structure in the
So, a rise in immigration will probably lead to a decline in salaries in certain job areas, while a rise in salaries is acquired in some other labor
3. Threat of new entrants High barriers to entry in the industry. Licensing requirements are high. There is a minimum size requirement to achieve profitability and the initial investment is required and fixed costs of operating. How much of the control is in the hands of existing players of the market or key resources?
Amazon is purely an online sales portal. Based on premium web rating organizations Amazon has a position ranging from 4 to 10 on a global ranking of premium websites. The presence of Amazon in the virtual world of internet is unquestionable. Big Data is a technology area which is highly talked about during the last several years. During the last 18 months, companies in the retail sector, manufacturing, construction, and technology areas have realized the extreme potential of Big Data and are trying to gain maximum advantage from it.
5. Growing population and growing number of people with internet connectivity. 6. Growth of specialty chains due to inflow of immigrants. 7.
Case: Trade restrictions, increased quotas, tariffs, safeguards, embargoes, U.S Labor strike, customs restrictions against apparel items, boycotts, and work stoppages increases the cost and reduces the supply of apparel available to the USA and affects the business adversely, operation and financial conditions. The products that are produced and
The core value propositions for Amazon’s internet book buyers were price, customer service, selection and convenience. Bezos (2000) claimed. Amazon to be “Earth’s most customer centric”, which meant they needed to listen, be innovative and personalise. Amazon’s personalization efforts were summarised by the CEO of Amazon, Jeff Bezos, by stating “If we have seventeen million customers, we should have seventeen million stores.” (Bezos, 2000).
These factors would be: the agreeable of the occupation, the costs of getting the skills and knowledge, the regularity of employment, the level of trust, and the probability of success. For them all the pros and cons of the different type of jobs would lead to a general equality. When the demand for labor rises, wages will rise above the minimum which is the subsistence wage and what employers pay
Jeff Bezos the C.E.O of Amazon incorporated the company as Cadabra in 1994 but changed the name to Amazon for the website launch in 1995. Bezos selected the name Amazon because it was “exotic and different”. Moreover, he assumed company’s size as Amazon River, one of the largest rivers in the world. As it was his aim to achieve such heights. Headquarter of Amazon is in Seattle, Washington.
Current businesses have the cost advantage of having local manufacturing
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).
Apple Inc. embraces diversification strategy as a means of promoting its viability in the market. Largely, the creation of the three products lines compounds the sources of the company’s income. In fact, the company does not rely on a single source of income because the product design belongs to different categories. This strategy cushions the business from suffering risks of associated with depending on a single business. According Hitt, Ireland, and Hoskisson (2014, p.135), the benefit of handling many products is that when one product fail or does poorly in the market, the business is would shift its attention of the best performing products.
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’s culture is based on employees’ competiveness, hard work and innovation. This corporate culture however brings a really stressful environment among the organization. For the past years, the company lessened the impact of a negative culture whereas the financial reports as well as the innovation were reported as the most important things. Nevertheless, organizational culture is nowadays becoming really important. It was for example seen in the Harvard Business Review when the CEO of Amazon went from one of the top ranked CEO in 2014 to the 87th position in only twelve months.