| CS4264 E-Commerce: B2C Applications | Assignment 1: Amazon.com | Rachel Lin Peishi (U078952B) |
Five Forces Analysis
1. Threat of New Entrants
Threat of new entrants is low: The online books retailing industry has a high entry barrier. Newcomers will need high capital which includes website development costs, distribution channels establishment costs, branding costs and etc to startup. As such, the threat of new entrants is low.
2. Bargaining Power of Suppliers
BP of suppliers is high: Although there are about 85,000 book publishers in America, there are only a few dominant publishers in the industry. Based on the website bookstatictics.com (Poynter, 2004), there are only 6 large publishers in New York and the
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Considering the fact that the first eBook reader has failed due to not being user-friendly, Amazon Kindle should be made to suit what the customers need.
Furthermore, to counter to the high rivalry in the online books retailing industry, Amazon.com has to come out with new strategy to play against its rivalry. This is especially so as the technology of the eBook reader is already known to competitors in the industry. As Amazon.com has always valued its “first-mover” strategy during its startup in 1995, it can also use this strategy to introduce the eBooks service first to its customers.
Lastly, Amazon.com strength is its powerful brand name. Many people, especially those in America know about the online retailer, Amazon.com, more than any other online bookstores. As Amazon.com has always provided convenience to its customers e.g. buying books online, it can continue to do so by introducing the Amazon Kindle and eBooks service which allow customers to get the books directly by downloading once they pay. This would also help Amazon.com to save on books shipping costs.
In conclusion, Amazon.com should provide Amazon Kindle and the eBooks service in 2007 as it is an excellent strategy to move forward with technology.
References
Adam. (2009, November 14). Amazon SWOT Analysis. Retrieved from MBA Tutorials:
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1. This strategy can provide customer with more choices and attract new customers to Amazon’s online retailing, through which Amazon’s customer base is spreading. Amazon originally only sold books, but now it also sells Kindle, MP3 and so on.
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).
Amazon.com is a customer centric company. They put more effort in improving their system to make the experience of customer more comfortable so that he keeps on returning to the website. Jeffery Bezos who is the founder of the Amazon.com started this company after seeing the use of internet increasing rapidly.
It appears that e-book publishing may have a future (PWC, nd), but many book stores are slow to acknowledge and appreciate that fact.
Pros – Amazon has a massive amount of content for to consume. Largest online retailer and the Kindle Fire can be used to access/purchase merchandise.
2-B&N and the book publishers are changing their business models to deal with the Internet and e-book technology by B&N developing its own e-readable devised called Nook. In order to meet demand and supply, they started to be actively in control of its supply chain by developing,
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Amazon is a company that sells many open product categories online by allowing customers to take the time to search and shop through the product offerings. Many product categories that are offered on Amazon may include device accessories, kindle devices, beauty, books, electronics, health & personal care, etc. The foremost product category that can offer the greatest advantage compared with a retail store chain is most definitely the books category. Reason to this is that the company has expanded the customer’s online shopping experience by offering such a wide range of physical and electronic books, depending on the preference of the customers. They are able to search for the top-rated selling
Despite these drawbacks, we think the firm should go ahead with the IPO. Risk of failure is slim since many investors are excited about the IPO, as Covey saw during her tour. Moreover, the firm needs recognition and growth to become a major player before traditional bookstores or other competitors competitors invest in the online book commerce.
Amazon¡¦s idea of selling books online on such a grand scale, though, has brought online retailing to a new level. Following is a look at Amazon¡¦s online retail process and how information systems played a role in the overall process.
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 proliferation of communication and information technology, particularly the Internet, most business organizations have been at the forefront to join the e-commerce platform. Amazon is considered as one of the existing and largest e-business platform in the world. This report outlines Amazon’s strategic intent and key resources and capabilities. In addition, the report will also include an analysis of the company 's assets and capabilities that have provided it a sustainable competitive edge as well as, the recommended future strategy of the giant online organization. Amazon defines its line of business operations based on product and service sales, fulfillment, digital content subscriptions, publishing, and co-branded cards. The company 's line of business is defined as an online store, Internet service provision, and the Kindle ecosystem. This project will explore the truth that has made the online company to be considered as the top online retailer, which mainly focuses on strategy. This report also outlines how inventories play a fundamental role in the organization 's business or corporate strategy. The other issues covered in the report include the approach used by the online company deal with the supply chain and the reason behind fast shipping fast. The paper will outline the finance statute of the company and whether the finance effect will bar the organization from developing in future. In order to achieve the answer to the questions