Marketing Research

With that being said, Amazon will continue to have increased revenue growth and will eventually begin to generate profit.

The internet retailer Amazon.com sells many goods and services around the world. Some of their biggest risk factors are that they face intense competition, they incur a great amount of risk through their international expansion and their diverse inventory. They operate in an oligopolistic market, especially in their market for e-readers. Overall in their oligopolistic market over the last three years they have been incurring net losses due to their rapid expansion and their intense competition, even though their net loss is small compared to their annual revenue.

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).

2. Trace the evolution of the Amazon.com business from the company’s launch in 1995 to the dot-com collapse in 2000. How did the company’s strategy change over time? How did capabilities evolve? What value did the company deliver to all stakeholders?

There are many internal and external factors that can affect how a business is developed and maintained. Amazon.com has been molded from many of these factors that exist within their business and their macroenvironment. Macroenvironment is defined as the most general elements in the external environment that potentially influence strategic decisions (Bateman & Snell, 2009). Internal business factors can include new entrants, buyers, suppliers, rivals, substitutes and complements, and the competitive environment Amazon is faced with. The macroenvironment introduces the economy, technology, laws and politics, demographics, and social values that may affect Amazon’s progress as a leading, online retail

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.”

Amazon.com is a Fortune 500 company that has revolutionized the retail industry. In recent years, Amazon has faced increased competition in the highly competitive online retail space as competitors invested heavily in their online storefronts and infrastructure. Positioned in a highly fragmented industry, Amazon must find solutions that can sustain its long term profitability and maintain its market share. To that end, Amazon should grow the Amazon Prime membership base and expand on its media and mobile offerings.

With the advent of the information technology, specifically the internet, it is said that more and more companies are existing in the online world. The changes in the business market also allows customers to change and become more dependent on online stores and online shopping than go and find something in shopping malls or retail store. One of the existing and considered as the largest and competitive online shopping in the world is Amazon. In this report, the goal is to analyse Amazon based on the case study provided. The analysis includes the discussion of Amazon’s s strategic intent, main resources and capabilities. In addition, this will also include analysis of the resources and capabilities that give

One of the environmental threats facing Amazon was the overall economic malaise of the U.S. and world economies, the Internet Tax Moratorium law was up for renewal, with no assurance of its being extended and online stalwarts EBay and Yahoo were expanding into Amazon.com’s markets. The Founder of Amazon was faced with the task of developing an effective differentiating enterprise wide strategy to prosper against the competition over the intermediate and long-term futures. The stock market pressured the company to produce consistent operating profits and to prove that its business model worked financially over the long term.

Amazon managed to go from online bookseller to the largest retailer in the United States. Today, there's almost nothing Amazon doesn't sell. Today, online commerce saves customers money, and precious time, Bezos knows that by personalization it would create real value for its customers and, by doing so; I feel each of the efforts he selected were successful because his hopes to build an enduring franchise worked, even in established and large markets. Bezos has inspired a willingness to continually learn and adjust, which has helped Amazon rise to the top. There were risk factors identified in the report and suggested a long-term strategic solution to help mitigate it. Success doesn't happen overnight. Bezos original 1997 letter to shareholders provides a glimpse into the extraordinary focus the famous founder has maintained through the years, along with some excellent lessons for all who reads it He stresses those to keep moving forward look to the future and look for the long term. He believes that a fundamental measure of success will be the shareholder value we create over the long-term (Quittner, J. 2008). He understands the stronger the market leadership is; the more powerful our economic model

The opportunities are diversification in mobile and e-commerce businesses and through acquisitions. If Amazon wants to diversify into services or products that are nearer its core competencies, it can diversify into mobile and e-commerce businesses, with emphasis on the former that has grown “three times faster than e-commerce year-over-year” (D’Onfro, 2014). As for external threats, they come from intense competition due to lower industry entry barriers. For instance, a delivery service app, WunWun, is a new player that allows customers to buy goods from local stores and then delivers them within an hour for free (D’Onfro, 2014). This competitor shows how new, nimbler players can also reduce Amazon’s local market share. Another threat to Amazon is the recent spate lawsuits, one against their products (Bellon, 2017) and another on patent infringement (Tirrell, 2017). Lawsuits can mar Amazon’s reputation and if the claimants win, it will reduce the company’s

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.

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.

One of the companies that exploits opportunities and business ventures to create growth and sustainability is Amazon, Inc. Amazon was founded in 1994 and since then it has opted to take its business online and thus develop a global strategy that has paid off and turned the company into a technological business hub that serves consumers by offering an assortment of products and services in a noteworthy customer service. These strategies have made Amazon one of the leading online retailers with a revenue of US$ 88.988 billion as of 2014. This paper thus seeks to describe Amazon’s grand strategies of product development, market development, and concentration as part of its long-term growth strategy.

Amazon has grown rapidly since their inception. The company experienced a surge is sales of 313% until 1998, supported by 8.4 million customer accounts in over 150 countries, of