Amazon : A Competitive Market

1508 Words Mar 30th, 2015 7 Pages
Amazon

Introduction
When amazon was founded in 1996, the company began as a small online book retailer but has since transformed into a retailing giant that is able to compete in a highly competitive market. Although amazon competed predominantly with other e-retailers during the information technology boom that took place in the 90s, with an aggressive business and supply chain management strategy, amazon was propelled among the ranks of other industry leaders. Amazon has created a reputation that is characterized by its innovation, supply chain management strategies, and the use of disruptive technologies.

Distribution
Amazon 's two largest competitors are EBay and Wal-Mart. Like amazon, E-Bay and Wal-Mart stores specializes in selling a large array of products. Wal-Mart has an edge however, in the area of prompt gratification of the customer. In society that is characterized by speed and convenience, Amazon has searched for a way to reach their long desired goal that could potentially leave their competitors in the dust. Amazon wants the ability to deliver items on the same day they were ordered. In an attempt to achieve their lofty goal, Amazon has set in motion plans to place fulfillment centers closer to metropolitan areas, allowing them to deliver items in one day to 50% of the U.S. population.

In 2010 however, the need to create a competitive advantage was not as pertinent. Due to tax incentives for online retailing, the majority of Amazon 's customers did…
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