Amazon's Competitive Analysis

1296 Words May 15th, 2004 6 Pages
Competitive Analysis

Competitors are the firms that compete to serve the same customers in the same marketplace. Competitors can compete directly or indirectly. Competition happens on two levels: Product or service competition.

Due to the shift of focus for Amazon, it has become the "Earth's biggest anything store". Its competitors have expanded from just online book retailers Barnes and Nobles and Borders to top audio retailers CDNOW.com and online auction house e-bay.com. Amazon has an overall lead of 40% market share against the other online retail firms. Their international business has more than doubled over the past 2 years

Amazon's primary value chain includes purchasing/sourcing, marketing, distribution and after-sales services,
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The lunched of Amazon.com in July of 1995 was the creation of a new and bold way of doing business on the Internet. Amazon.com forced the traditional physical world brick and mortar retailer in the book industry to change the way they target the industry's consumers and then epitomized Business-2-Consumer e-retailing. Although, Amazon.com started as an online bookstore,

The bricks and clicks mantra revolves around the idea that the winning -- and profitable -- formula for electronic commerce success is leveraging the best of the physical and virtual worlds. In theory, it should give physical retailers venturing on to the Web an edge over pure dot-com e-commerce companies because they can efficiently extend their existing infrastructure and complement their real world stores. So far, the most successful retailers have been those that have taken an aggressive approach to the Internet like Amazon. The bricks-and-clicks model is gaining momentum as the e-commerce market matures. A growing number of retailers have finally gotten serious about doing business on-line, now that fast-moving dot-com players such as Amazon.com Inc., eBay Inc. and eToys Inc. have carved out market niches.

By creating an independent on-line unit that has the freedom to develop its own merchandising and marketing strategies, Amazon has the freedom and flexibility to capitalize on opportunities. Toys "R" Us Inc. stumbled when
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