Amazon Strategic Management Study

1222 Words5 Pages
STRATEGIC MANAGEMENT CASE STUDY B : AMAZON 1- By using Porter’s 5 forces’ framework, describe the forces that affect the core initial market of amazon (the online retailing industry) The power of Suppliers: Suppliers are not concentrated : thousands of publishers throughout the world. The inputs are not necessarily rare. The power of Suppliers: Suppliers are not concentrated : thousands of publishers throughout the world. The inputs are not necessarily rare. The power of Buyers: Buyers have a high bargaining power because of the low switching costs the Internet market allows. Besides, the market is very competitive, and that ensures a high power to consumers. The power of Buyers: Buyers have a high bargaining…show more content…
* Amazon tried to set up alliances in order to reach more and more consumers. In 2008, fabric.com became Amazon’s propriety and in the same time the company experimented a new concept: selling old, used rare and out of print books. * Amazon was the first company to launch an electronic reading device successfully. Amazon seized the opportunity that represented the launching of the new iPad like a business potential expansion and offered free accesses to the Kindle App. * The growing use of Internet in developing countries and especially in China is an opportunity of great expansion for Amazon. Threats * Amazon’s main competitors are the retailing store – physical ones – and booksellers online tried to reach the x * The decrease in Amazon's sales, could lead to less cash flow which in turn will decrease the amount of money Amazon can invest into technology innovation. In today's society where Amazon faces an increasing amount of competition the ability to stay technologically relevant is extremely important. * Although Amazon offers many different services (including but not limited to the sale of books), it is still in the eyes of the general public an online bookstore. If Amazon wishes to continue to expand into different fields it may need to focus its marketing on opening customers and potential consumers to its different services.
Get Access