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.
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 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.
Unlike the traditional online retailer, eBay has adopted a unique business model. It has created a better form of commerce by connecting millions of buyers and sellers around the world, empowering people and creating economic opportunity for all. The company makes money by matching buyers with sellers. Sellers ship
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.
To assist the customers in choosing their order, purchase suggestions based on their previous purchases and webpage viewing are given. Customers can also provide their reviews of the product on the website to assist other customers in choosing the best book. These benefits that can be gained from purchasing through Amazon have brought many loyal customers, while the good services provided by the company encourages them to buy more from Amazon’s website. (Ecommerce digest,
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.
(Amazon,1996). They have considered themselves as a customer-centric company and, the customer is the key to its e-commerce business success, especially because these stakeholders significantly affect revenues. They have interacted with the customer well and ranked 1st in customer satisfaction in Foresee Experience Index: US Retail Edition (ForSee Experience Index,
Being the world’s leading online retailer, Amazon derives its strengths primarily from a three-pronged strategic thrust on cost leadership, differentiation, and focus. This strategy has resulted in the company reaping the gains from this course of action and has helped its shareholders derive value from the company.Amazon primarily derives its competitive advantage from leveraging IT (Information Technology) and its use of e-Commerce as a scalable and an easy to ramp up platform that ensures that the company is well ahead of its competitors.One of the key strengths of Amazon is that it enjoys top of the mind recall from consumers globally and this recognition has helped it enter new markets, which were hitherto out of bounds for many e-Commerce companies.Using superior logistics and distribution systems, the company has been able to actualize better customer fulfillment and this has resulted in Amazon deriving