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Analysis Of Amazon 's ' Amazon ' Essay

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Factors that will help us analyze sources of barriers to entry are the supply in economies of scale, distribution system, prices in the market, cost advantages, and brand recognition. Amazon is in an industry where the threat of entry is weak. Amazon carries a unique distribution system, which cannot be easily imitated. This enables them to provide a variety of products, services and delivery channels. New entrants would require high capital investment to compete against large companies such as Amazon. High economies of scale that enable Amazon to set low prices for its products create barriers to entry for new entrants. Creating brand awareness is an important tool to bring customers to a business. Amazon has created a brand that is recognized by its customers as being the fastest and most convenient way to shop. Maintaining a positive image that represents a business requires time, resources, and good reputation. Amazon is a company that has a well-established brand recognition, making it hard to compete against.
Supplier Power: With Amazon and their other competitors relying on suppliers for their business model, supplier power is high. With many avenues for suppliers to reach the company, these suppliers can sell through not only Amazon but also multiple other retailers at the same time. As a group, these suppliers are the basic backbone for these companies to operate. Not one supplier has any major influence off the other suppliers but as a group they

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