Analyze Amazon.com using the competitive forces and value chain models. How has it responded to pressures from its competitive environment? How does it provide value to its customers? a) Competitive forces analysis i) Entry of competitors It is easy for competitors to enter the market by establishing an e-shop and Amazon laid the groundwork for competitors (Flat World Business, n.d). However, Amazon has advanced websites and high brand recognition that other competitors may not reach its level.
Jeff Bezos is the founder of Amazon in 1994. Jeff Bezos was thinking about the rapid growth in internet these days. So, he decided to open a book store online which was a good idea. Individuals can buy and sell books online. In 1996 the bookstore online has become successful in the revenue approximately fifteen million.
• Weaknesses and Threats (WT) – How can weaknesses be minimised and threats managed? Part IV: Concentric Diversification strategy This strategy uses their technology expertise, to create value being the ‘lowest cost, customer-centric, online market. This policy proved good as it helped organised their customers (B2B & B2C) as well as activities, securing their cash flows to crisis. But the huge investments for it can be risky, due to low profit margins and sales reduction can cause effects on cash flow or new technology
With the rapid growth of products and brands, people have speculated that online shopping will overtake in-store shopping. While this has been the case in some areas, there is still demand for brick and mortar stores in market areas where the consumer feels more comfortable seeing and touching the product being bought. However, the availability of online shopping has produced a more educated consumer that can shop around with relative ease without having to spend a large amount of time. In exchange, online shopping has opened up doors to many small retailers that would never be in business if they had to incur the high cost of owning a brick and mortar store. At the end, there are agree and disagree statement for shopping
Into that area, distribution channel is a key point in a company success and there is a high access to distribution channel in e-retailing industry. However, the shorter the distribution channel is, the better it is for the company due to the fact that we need to pay each intermediary for its services. Amazon allows its producer to sell the products directly to the final customers, which is the most efficient, and shortest distribution channel possible. Government policy in this area limit entry into industry and could be considerate as medium. Indeed, the U.S Department of Labor, the Federal Trade Commission, the U.S Department of Homeland Security put laws to guarantee worker’s rights, ensure safety and
But offline stores need to be innovated, and be more suitable for today’s consumers. They need to solve the problem of cost and their price. Many offline stores are obsolete because of these reasons. On the contrary, although online shopping is not perfect now, it is still more in line with the consumption view of modern people, and it becomes more and more mature. Despite these two shopping ways are both beneficial for the economy of society, online shopping shows more potential economic vitality waiting to be
Amazon.com consumers have the option of buying the products and services they want on other retail web sites on the internet. If Amazon.com does not offer a deal to satisfy the customer then the customer will search the internet until they find a better deal. In addition, the threat of substitutes product for Amazon is high. With the exception of its patented technology (such as 1-Click Ordering), there are other ways to Amazon’s products and services. In addition to physical store, most companies have an online store as
In the busy schedule these days, it is not easy for people to go out and do shopping frequently. Having online shopping actually ease people does shop from home or office or even at any location where you have access to tablet and internet (Fathima Farid, 2015). All they need is to choose what they want, purchase it and make payment via online and end of the day the goods will be delivered to their doorstep. This purchasing can be done anytime that they want whether it’s during the daytime or night. Therefore, this eventually saves up your fuel consumption and energy where you do not need to set a time and drives to the store to purchase things (Fathima Farid, 2015).
The Economist would say, “Time is Money”, so spend it wisely. Because human is involved in so many activities which make time management difficult; the fact that time is one of our greatest enemy, and that technology has made life worth living, I will empirically say online shopping is better than traditional shopping. One of the reasons why I settled for online shopping over traditional shopping is that, online shopping has easy accessibility. Accessibility in the sense that many buyers can access a shop at the same time without any obstruction. Now that technology has immensely contributed to the living standard of human, buyers can access and order for any product of their choice without practically going to the shop.
Are You Ready to Open an Online Store? Now a days it is very common to say that we buy products by online shopping and sell products online. There are several benefits of online shopping specially for those who are very busy and they didn’t get the time to go for shopping. Online shopping saves time, money and more reliable as compared to traditional shopping. Looking at the craze of online shopping, most of the people want to start online business by creating an online store for selling the products of their interest.