Amazon : The Negative Impact On The Economy

Amazon employees are left feeling angry because they are being given low-paid wages for overworking. This effects Amazon heavily as they are having employees leaving the company and the company it's self has to bring in agency workers as temporary employees. This would mean

In the article, “Amazon.com is a 21st century Deal with the Devil” the author Amy Koss makes her piece an argumentative writing. She tries to persuade the reader that the company, Amazon, is cruel and untrustworthy. The author states,”They’re offering deals and deeper discounts, closing branches, consolidating staff, trying to fend off the inevitable. According to the feds, there have been 60,000 retail jobs in just the last two months.” I disagree with the author’s statement and believe that Amazon is just doing what they have to do, so they can make money and build a stronger business. It isn’t exactly Amazon’s fault that other businesses are closing making people loses their jobs. The other businesses must have their prices very high, making

The article, “Amazon.com Is a 21st Century Deal with the Devil” from Amy Koss, published by Los Angeles Times on June 4, 2017. The death of the American mall is avoidable. It is avoidable by promoting it on the Amazon website, or it is also avoidable by closing down the website. Even if none of this happens, there will always be people who are not lazy enough to get up and go to the mall. There are also a lot of people in the world who do not know about the website amazon.com. For those who do not, it means they go to the mall instead of shopping online.

Beyond Amazon’s core markets of electronics and media, Amazon is making a big impact in the retail market. Analyst John Blackledge believes, “Amazon will become the largest retailer of apparel and accessories in the U.S. market next year, passing Macy 's as the leader” (Deagon, 2016, para. 2). Amazon announced that they will be launching their own private label dress shirts for men and expand into dress pants, sports clothing, and sweaters. In addition to that, Amazon has plans to open small retail stores at malls to showcase their electronic devices and hardware devices (Deagon, 2016).

How would you define Amazon’s industry? What difficulties do you encounter identifying primary competitors and key lines of business?

In the article, “Amazon,com Is a 21st Century Deal with the Devil”, from Author Amy Koss from the Los Angeles Times, June 4, 2017 says that Amazon will ultimately be the death of big malls which do grant a lot of jobs which allow cities to grow. I do believe there are multiple ways to avoid this. The first way is plain and simple, it's not going to happen, because teenagers like me and young adults in their late teens and early 20’s, love to go the mall. They like to go the mall because you can't meet up at Amazon, you can't buy food at Amazon, you can preview items on Amazon. Another way to stop this is to adapt to the market, sell stuff that people want to buy, be diverse, allo everyone from everywhere be able to walk into your store

This sort of global expansion adds great complexity to the functionality of Amazon’s management, personnel, operation systems, technical performance, financial resources, and internal financial control and reporting functions. With the perplexity of current situations, Amazon may not be able to sustain growth effectively, which ultimately could bring damage to their reputation and limit their operating growth as well. .

Globalization is a growing part of everyday businesses. This is the process of interaction and integration among people, companies, and governments of different nations. With the world of online retail, the buying and selling to one person to another has grown drastically. There has also been a substantial change in technology and what we as people can do in today’s time rather than in the past. Amazon is a huge retail giant and buying and selling items is one of their key functions. The impact made on Amazon is nothing but an advantage. Amazon currently is the 56th largest company in America by market capitalization. Being one the largest retailer around, 15th in the nation at that, Amazon has made a name for themselves. Amazon has made some very substantial growths and with these opportunities they face they can make even more advances in the future. (Globalization 101, 2016)

Neil Irwin of The New York Times writes of Amazon: “The online retailer is on a collision course with Walmart to try to be the predominant seller of pretty much everything you buy. Each one is trying to become more like the other — Walmart by investing heavily in technology, Amazon by opening physical bookstores and now buying physical supermarkets.” Something similar, says Irwin, is happening in “nearly every major industry,” benefiting “the biggest and best-run organizations, to the detriment of upstarts and second-fiddle players.”

In the last decade, Amazon has grown exponentially. Many people believe the seven hundred and thirty-nine billion dollar company controls America. The definition of a monopoly is “the exclusive possession or control of the supply or trade in a commodity or service.” If Amazon falls under the category of a monopoly, then Amazon would control America, therefore proving the company has too much power. If Amazon is not considered a monopoly, then this does not disprove the power of Amazon; It just means that the power that Amazon holds is legal. E-commerce has also become popular in today’s world, and Amazon dominates it. No one comes close to catching up with the company, as it will most likely always be owned by Amazon. The closest competitors Walmart, Ebay, and Apple combined do not even compete with the revenue that Amazon brings in through e-commerce. Amazon has destroyed more jobs in the United States than they have created. They also destroyed more jobs than China has in the United States, which is a problem. One company has a lot of control in creating or losing jobs to the U.S economy, and that is a scary

Amazon’s core competencies are in its ability to effectively use and develop technology to drive site traffic and enhance the customer experience. Their distinctive use of website real estate coupled with their ability to leverage their brand and effectively use that leverage to deliver low prices and high quality products, makes them a leader in online retailing. Their partner brands and their ability to adapt and recognize deficiencies enable them to effectively cut out the middle man, or at the very least, partner with them.

The threat of substitutes for Amazon is high. With the exception of its patented technology, there are quite a lot of alternatives to Amazon’s products and services. In addition to physical presence, most companies have an online store as well. Amazon’s products can be purchased all over the internet and they are just spread out among different web sites. The companies operate in brick-and-click mode providing the similar product categories and competitive prices have become the biggest threat for Amazon. However it is extremely difficult for Amazon to establish physical stores or launch price

Many consumers go for what appears to be cheapest and most convenient. The reality is, Amazon’s increasing dominance comes with high costs. “These consequences have gone largely unnoticed thanks to Amazon’s remarkable invisibility and the way its tentacles have quietly extended their reach” (LaVecchia, 2016). It is vital that consumers are aware of this superpower that is taking over.

As of January 2010, Amazon.com has three times the Internet sales revenue of the runner up, Staples. By offering a large amount of varied categories through its website and other international ones (Amazon.co.uk, Amazon.co.fr, and so on), it has managed to grow to a customer based company with over 30 million people. In addition, the online retail format enables the company to reduce costs of managing inventory (Amazon.com; online bookstore, 2008).

Amazon understood firsthand that the competitive advantage of a company originates immediately from how distinctive the organization's resources and competencies are. Amazon is able to both engage in production at a lower cost and generate a superior product at a standard cost. This is accomplished mostly via Amazon's strategy of having a wide variety of goods and competitive pricing. Customers know they can find basic products at slashed prices or high quality goods at standard prices and this is all achieved via the enormous range of products and product brands and types available on their massive marketplace. For example, the depiction displayed in the case study which shows how growth was related directly to: lower cost structure- lower prices customer experience traffic sellers -selection and convenience. While this is a grave oversimplification of the Amazon business model, it demonstrates how many aspects of the strategy reinforced one another.