Amazon.Com Strategic Positioning

4618 WordsApr 17, 201319 Pages
Introduction Amazon.com (“Amazon”) is one of the most globally recognized online e-commerce retailers, offering the world’s biggest variety of goods and services – all while not operating a single physical retail sales location. Yahoo! Finance provides one of the most precise and concise descriptions concerning the business and product variety of Amazon.com: “Amazon.com, Inc. operates as an online retailer in North America and internationally. The company operates various retail Web sites, including amazon.com, amazon.co.uk, amazon.de, amazon.fr, amazon.co.jp, amazon.ca, and amazon.cn. Its product categories include books; movies, music, and games; digital downloads; electronics and computers; home and garden; toys, kids, and baby;…show more content…
• Environmental Due to its exclusive online presence, Amazon relies on a continuous electricity supply. Disturbances to the electricity supply in any parts of the world, within which Amazon operates could affect earnings significantly if occurring over a longer time frame or more frequently. Hence, it is important for Amazon to monitor any crisis or disaster that could affect the electricity network, as well as any factors that could lead to substantial increases in electricity (and/or internet usage) fees. Increases in these fees could harm Amazon’s business model due to limitation of acquirable market share and, hence, its profitability. • Economical – Market growth due to internet usage increase The size of Amazon’s target market and its growth are subject to geographical internet accessibility. Increases or decreases in internet accessibility will expand or shrink Amazon’s market, respectively, significantly affecting their earnings. For Amazon’s long-term strategy to pay-off, an increase in global internet accessibility would be beneficial, if not necessary. Therefore, Amazon should monitor statistics on internet accessibility by region, and evaluate the factors influencing their growth or decline. – Reliance on seasonal holidays sales Amazon also has a high reliance on seasonal holiday sales, especially as large

More about Amazon.Com Strategic Positioning

Open Document