Amazon is One of the Largest Online Retailers

Amazon is the world’s largest online retailer that was launched in 1995 (Rouse, 2014). Amazon was mainly a book selling company that has enlarged its’ business by selling a variety of goods. The company sells all types of technology devices such as cell phones, games, televisions, movies, cameras, computers,

Porter’s framework or also known as Porter's five forces model, introduced by Michael E. Porter who have well analyze and richly identifies five competitive forces that shapen every industry and able to determine an industry's strengths, weaknesses, threats and opportunities. Bargaining power of supplier, bargaining power of buyer, degree of market competitive rivalry, potential entrants and degree of substitute are the five forces of Porter’s framework.

Porter’s Five Competitive Forces Analysis is a framework developed by Michael E. Porter of Harvard Business School for study of industry analysis by analyzing five competitive forces which define industry and its business strategy. These five competitive forces determine the competitive advantages, disadvantages and attractiveness or profitability of industry.

Porter five forces analysis is a framework for industry analysis and business strategy development. It inducements upon industrial organization economics to develop five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An unattractive industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching pure competition, in which available profits for all firms are driven to normal profit. This analysis is associated with its principal innovator Michael E. Porter presently at Harvard University as of 2014.

Amazon is the largest online retailer in America founded in 1994 by Jeffery Bezos. At this time the company he had started was being built in his on garage in Bellevue Washington. Its world headquarters are located in Seattle Washington. Amazon produces services for audiences worldwide with its online product and cloud computing. The website for amazon was set up in 1995 available in many different languages like: English, Chinese, French, German and Japanese. All of these are separate websites but the business model is the exact same, all similar. During the first few months Jeffery was devolving his business he had shipped and filled too all 50 states and 48 countries. Everyday Amazon get close to 615 million visitors annually due to a survey they had conducted. At first Amazon started as an online bookstore, amazon giving consumers the availability of more tittles than traditional book stores. Since it has grown immensely to provide products of all kind. In 1997 has problems with slow process getting multiple negative comments and complaints from investors. Following the little bump in the road Amazon than started to grow in 2002 they turned it into a profit around 3.9 billion dollars. Jeffery Bezos founder of amazon was that named Time magazines person in the year. From starting in selling books, amazon has ventured into selling clothing, food, jewelry, baby products, clothing, beauty products, sporting goods, cd’s, movies home appliances, electronics and the

Porter’s five forces analysis is a tool is useful for us to analyse the threat of competition in an industry. Porter believed that the industries were influenced by five forces; competitive rivalry, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and the threat of substitutes. Analysing these areas can allow you to see attractiveness of the market and find a competitive advantage.

Amazon.com was founded in 1994 as an online book retailer. Now, the largest retailer of books has also become the largest online retailer with a customer base of over 30 million people. Amazon competes in a vast array of markets including: books, movies, digital readers, computers, consumer electronics, pet needs, groceries, health and beauty aids, toys, clothing, jewelry, shoes, sporting goods, tools, automotive, hardware, building supply, and more. Despite their large product offering, Amazon has maintained its strong brand.

Amazon is a global online marketing retailer that was created in July of 1994 by Jeffrey Bezos (fundable.com). The company was started after he quit his job and went into building what is now known to everyone as Amazon.com. Amazon operates in ten different marketplaces allowing companies to grow worldwide and more than 180 countries are able to receive these products (services.amazon.com).

Amazon.com, Inc. is an American electronic commerce company that started as a bookstore on the internet with a different name, Cadabra.com. Jeffrey Bezos, founder and CEO of Amazon.com, incorporated the company on July, 1994. The site went online as Amazon.com in July 1995, with headquarters in Seattle, Washington, United States (Securities, 3). Bezos named the company Amazon.com, because he wanted a name for his company that began with “A” so that it would appear early in alphabetic order when someone look for it in the internet. He looked through the dictionary and settled on “Amazon”,

Amazon.com is the world’s largest online store that provides access to online shoppers worldwide. In 1994, Jeff Bezos started this in his garage with the name of Cadabra. It was given its present name in 1995. Its headquarter is in Seattle Washington according to the statistics of 2012, 88,400 employees are working in the office and its revenue is about 61.09 billion US dollars. Firstly starting as an online book store, it developed itself as the largest online store of DVDs, software, mp3 downloads, videogames, furniture, toys, food, jewelry and many more things. Amazon is present in many countries as separate selling websites like America, Canada, Brazil, France, Germany, UK, Italy, Spain, Japan and china. As the internet banished the geography, so did the Amazon. Today, there are 1.7 billion internet users as compared to the 3600 million in the year Jeff Bezos started the Amazon. So, it also globalized along with the globalizing world (Wasserman 2012).

Amazon.com, Inc. (Amazon.com) is an e-commerce company. The Company sells a range of products and services through its Websites. The Company 's products are offered through consumer-facing Websites, which include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It designs its Websites to enable products to be sold by the Company and by third parties across various product categories. It also manufactures and sells electronic devices, including Kindle e-readers, Fire tablets, Fire TVs, Echo and Fire phones. Amazon.com operates in two segments: North America and International. The North America segment focuses on retail sales earned through North America-focused Websites. The International segment focuses on the Company 's operations done through its international Websites. It serves developers and enterprises through Amazon Web Services (AWS). It serves authors and independent publishers with Kindle Direct Publishing. (Amazon.com Inc.) When Amazon opened its virtual doors in 1995, it was with the mission to be Earth’s most customer-centric company, where shoppers everywhere can discover anything they might want to buy online. (hourly fulfillment associate jobs)

This lead the new firms can enter and unprofitable firms can exit easily if they cannot survive. Theoretically, any firm can enter and exit a market in industry, this is because they have the freedom to entry and exit and the profits always be nominal. Barriers to entry are unique characteristics that define the industry. Barriers will reduce the chances of entry of new firms instead they can maintaining a level of profits for those already in the industry. Barriers are possible to created or exploited to enhance a firm’s competitive advantage from the strategic

Porter five forces analysis is defined as a very effective marketing tool designed in order to assess and evaluate the level of marketing competition within certain operating industry or business, this tool will support marketer to create a proper marketing strategy, it will provide the business with an excellent market view. The Porter’s Five Forces Analysis will display a comprehensive view on marketing. Also, the Porter Forces will display the most attractiveness factors of an Industry. Attractiveness in this context refers to the overall industry profitability. (Porter et al. 2008)

According to Carpenter, Bauer, & Erdogan (2010), “Porter’s five forces analysis considers (1) New Entrances, (2) Buyers, (3) Suppliers, (4) Substitutes, and (5) rivalry as key external environmental forces in developing strategy.”

The Porter’s five forces analysis remains a remarkable tools that always provide vital information for any company that is planning to enter into an industry, which is why is a proven tool used for effective strategic planning in the business world (Suttle, 2015). The concept as already explained reveals competitors in the entire industry, suppliers, vendors and customers power as well as influence in the industry, new entrants requirement, and information obtained from the evaluation will assist the strategic team have a better understanding and knowledge of competitor’s power, which will be essential for effective designing of dynamic comparative global strategy for the firm (M.U.S.E, 2015).