Amazon Is An American Electrical Commerce Company

1509 WordsApr 25, 20177 Pages
Introduction Amazon.com or Amazon is an American electrical commerce company that is known for its incredibly diverse selection of affordable products. The company was founded in 1994 by Jeff Bezos as an online bookstore. Over the years, the company diversified the products it offered to incorporate goods such as: electronics, jewelry, clothing, food, furniture, home goods, and many more. Amazon has even begun creating and selling its own brand of goods on its website. Because of the large amount of products and services offered, Amazon.com has now become a one stop shop for many of its customers. When the company had just gone public in 1997, the stock price was a mere $18 dollars a share. Today the company is the market capitalization…show more content…
Only, after Amazon’s initial success when it was solely an online bookstore has the company looked to increase its product selection. Amazon is able to offer so many different products because it allows third party sellers to sell their products on Amazon’s website. Furthermore, Amazon only charges these third party sellers a minuscule percentage of their sales which keeps the prices down for customers, creating an almost symbiotic relationship of its first two core competencies. Finally, Amazon has sought to increase its customer convenience by creating faster shipping of products, and a customized user face on their website. Completive Advantages 1. Customer Convenience 2. Low Cost Distribution Customers find Amazon.com a convenient place to shop because more than likely the website will have what they are looking for. As a result, in a 2016 BloomReach study, 55% of Americans reported of going to Amazon.com first when searching for a product. (Levy) Furthermore, For full SWOT Analysis see Appendix C. External Analysis For a complete PASTEL analysis see Appendix D. The factors within the PESTEL model that influence Amazon the most are the sociocultural factors and the technological factors. The sociocultural factors that currently affect Amazon and will continue to influence the company is customers trend towards online shopping. People are becoming more trusting of putting their sensitive information (such as credit card info or

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