Amazon.com Case Study Essay

Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage

Through selling more in a lower price, Amazon can achieve economies of scale, which in return can increase their bargaining power over its suppliers and partners.

Moreover, Development of technology has led to an increase in competition between online stores. Now there exists unlimited number of online stores in every country having multiple branches leading to the fact that they provide cheaper services to customers. Keeping this in view Amazon is now compelled to change its traditional style of business. Apart from this, Amazon has also realized that having a physical store, where customers can shop like regular markets would give an extra value proposition to the company. (Lee, 2014)

As discussed in the case study, the advertising and marketing strategy of Amazon have been focusing on how the products would gain interest from their target market and how they can be able to generate sales with their products. This is Amazon’s stronghold where it continues to yield strong sales revenue by leveraging off its excellent online shop in different locations, such as in UK and other country, strong brand name and excellent reputation among customers. Amazon has also been continuing to create affiliate websites to expand their business market among various consumers.

Amazon.com creates value for its customers by offering customers broad array of products to select from through their website and ensuring timely delivery of products to exhibit high level of commitment towards their business and customers

Amazon is the world’s largest online retailer and is indeed a pioneer in the online retailing space. Though it started as an online bookstore, its success in its venture spurred it to diversify into selling anything that can be sold online. Further, Amazon has also expanded globally and now operates around the world through a combination of localized portals and globalized delivery and logistics platforms. Amazon has achieved a great level of success in the online retail industry. Under the five generic strategies, Amazon’s strategy would fall within the strategy of being a low cost provider. , Amazon’s strategy is driven by its sources of competitive advantage wherein it is focus on technology, actualizing the benefits of economies of scale, and leveraging the efficiencies from the synergies between its external drivers and internal resources have been the cornerstones of its business model.

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

Amazon, Inc. is considered to be the leading online retailer in the world today with a platform of sale for over 40 different goods categories ranging from machine/motor auto parts, books, groceries and electronics. Apart from this, the large organization also has a platform for internet technology and ecommerce, a platform for internet advertising, a platform for logistics and fulfilment, an internet incubator for startups, and a search technology. The company was started in Seattle, America back in the year 1994 in July by Jeff Bezos, who was a former New York investment banker. Before Amazon achieved its great success, it was the original idea of Jeff to start a bookstore to sell books online. The company has tremendously advanced from an online bookstore to a globally known online Wal-Mart where many products are sold such as Hardware and Tools, games and toys, Cookware and Music CDs. Amazon gross sales over the years have shown the company’s incredible growth with revenues back in 1997 being $150 million growing over $100 billion today (Kargar, 2004; Mellahi & Johnson, 2000).

Amazon.com offers one touch shopping experience for millions of consumers around the world. You now have the ability to conduct all your shopping needs, wants and desires

Analysis SWOT, which stands for Strengths, Weaknesses, Opportunities and Threats, is a way to analyse and evaluate the current situation of amazon.com.

Technology is a huge factor in modern day life - with 45% of the world having internet access to purchase goods and services, the e-commerce industry is ever growing. Therefore new technologies have a significant impact on the external environment as they guide the new direction of a market. Technological improvements generally coincide with technological advancements in a company’s products helping to gain more consumers and maintain competitive advantage over other companies. Amazons prime addition has between 50 and 70 million subscribers with an increase of 53% last year (Mac, 2015) therefore showing the success of the technological improvement and the ability to increase consumer base by a large amount. Other technological advancements that Amazon has invested in include Amazon video and Amazon music via mobile apps and webpages enabling Amazon to keep up with growing markets. Another form of Amazon using technology is to track and trace consumer patterns – technology has enabled Amazon to see there consumer loyalty rates (50% consumer loyalty in 2004) (Kimble & Bourdon, 2013). Similarly as technology is becoming such a large part of everyday life, e-commerce companies are able to gain considerable benefits as their target market grows – faster broadband as well as increased availability of internet helps to promote companies such as Amazon.

Amazon stated its marketing approach in its 2011 annual report as “we direct customers to our websites primarily through a number of targeted online marketing channels, such as our associated program, sponsored search, portal advertising, email marketing campaigns, and other initiatives.”(Petro, 2017). Being the leader of the ecommerce industry, Amazon maintains that

Amazon, as an organization understands the needs of their customers on a much deeper level than its competitors as well as focuses on constant improvements in the market. Currently, their major focuses are e-books, Amazon DynamoDB, a personalized shopping experience, and expansion into various retail outlets. (Fitzsimmons 2014) Amazon has proven to be very successful with their bookstore business, replacing the need for retail large bookstores such as Barns and Noble and Borders and local bookstores. Amazon understands that customers are demanding an online retailer that understands what their wants and needs are. Henceforth, Amazon has created databases and technology that creates a very personalized shopping experience for each and every Amazon shopper. As an organization, Amazon understands that this market is still being developed as technology increases. Amazon strives to have their solutions all be backed with advanced technology that puts the customer first and creates strong brand loyalty. In doing this Amazon not only builds a stronger client base, but can truly understand their customers on a level that is a wonderful service for their shoppers.

Amazon is always trying to find new ways to attract more customers without neglecting its current ones. The CEO, Bezos wanted to move fast and in recent years this company joined other industries to offer new services such as movies, music, games, and even food. Thanks to enormous selection of products and various services that the company offers to its customers, Amazon has become the world’s biggest online retailer. The success of the company is because it has developed rapidly, and it continues to expand its product range. Today, we can find an infinite array of products in the Amazon

Good day academia and my audience of peers. Finally, I have chosen Amazon.com as my company of choice. Consequentially when I started looking for a company to write my final case study on, I searched deep down inside of myself, and asked myself, what exactly is it that I prefer in a company. In addition to that, I asked myself, what company in today’s global market is very empathetic to its customers, stakeholders, shareholders and environments. Future more, what company also served speed, and saved time?