Threats And Threats Of Amazon

Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage

The low cost product can also change customers buying behavior. Some customer who prefer to buy goods in the physical stores might decide to buy Amazon’s online product if they see it is in so low a price.

Amazon intended to benefit from cross selling on the basis that it already has a loyal installed base in place. (Krishnamurthy, 2004) Amazon also benefited from economies of scope as its basic infrastructure is already in place and highly scalable.

Amazon.com has successfully managed to make its customers to feel that anything they could possibly want could be found on their website. Additionally, its products are marketed at a competitive price. Another important factor is their speedy delivery with their usage of UPS and FedEx (United States) and Royal Mail (United Kingdom). The company also caters for people that prefer online shopping with extra services such as Amazon Prime - a service with a yearly payment, customers are eligible for free next day delivery. Even though Amazon.com is known to be an online seller of most things, it still excels in its original market of book selling. Evidence of such is

Globalization is a growing part of everyday businesses. This is the process of interaction and integration among people, companies, and governments of different nations. With the world of online retail, the buying and selling to one person to another has grown drastically. There has also been a substantial change in technology and what we as people can do in today’s time rather than in the past. Amazon is a huge retail giant and buying and selling items is one of their key functions. The impact made on Amazon is nothing but an advantage. Amazon currently is the 56th largest company in America by market capitalization. Being one the largest retailer around, 15th in the nation at that, Amazon has made a name for themselves. Amazon has made some very substantial growths and with these opportunities they face they can make even more advances in the future. (Globalization 101, 2016)

It must not be forgotten that most of those companies failed and were shut down soon. Amazon had been successfully operating for almost two decades because of its unique business style. Amazon has ensured all this time that it must make customer preferences its preference and must cater to them accordingly.

Amazon focuses on global reach, putting customer first,, and extensive selection of products through its vision which is “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online” (Gregory 2016).

This sort of global expansion adds great complexity to the functionality of Amazon’s management, personnel, operation systems, technical performance, financial resources, and internal financial control and reporting functions. With the perplexity of current situations, Amazon may not be able to sustain growth effectively, which ultimately could bring damage to their reputation and limit their operating growth as well. .

Many consumers go for what appears to be cheapest and most convenient. The reality is, Amazon’s increasing dominance comes with high costs. “These consequences have gone largely unnoticed thanks to Amazon’s remarkable invisibility and the way its tentacles have quietly extended their reach” (LaVecchia, 2016). It is vital that consumers are aware of this superpower that is taking over.

By using this facility, sellers can ship their products to customers along with Amazon owned inventory items. This significantly enhances the delivery efficiency of sellers on Amazon platform. The online Marketplace of Amazon incorporation is significantly huge where merchants from different 100 countries offer their products and the Amazon platform helps them to effectively connect with customers living in different 185 countries. The analysis of Marketplace Amazon platform suggest that around 20% of the overall third party sales are made outside the home countries of sellers which signifies the importance and scale of Amazon incorporation online Marketplace. The Amazon Prime facility of Amazon incorporation enable the company to deliver the product quickly and also help to provide free shipping facility mainly due to economies of scale. Amazon Web Services is being used by different organizations as a platform for the creation of applications and businesses which include TATA Motors, major League baseball, and Qantas. Marketing segment is considered to be one of the most significant aspects in Amazon incorporation. Different marketing techniques are used in mixed manner such as sales promotion, events and experiences, print media, advertising, direct marketing, and public relations. These marketing techniques are being used in order to effectively communicate the formulated message of Amazon incorporation to targeted market. During the year 2013, Amazon Incorporation was in the top of the list of 100 globally known brands. This was mainly due to significant increase in the marketing budget of Amazon incorporation and its effective implementation

Amazon.com is a worldwide American-based electronic company founded in 1994 by Jeff Bezos, the actual chairman and CEO. At the beginning, Amazon was just a small online book retailer, but thanks to the development of Internet at the end of the 90s, it grew quickly into a huge online retail store. Today, in the United States, one out of three online sales are made through Amazon’s website.

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

Many United States products are not sold or distributed in other countries for various reasons such as bans and trade barriers. Amazon, for example, is the largest internet provider for goods and services in the world. But, many of its items are not readily available abroad. In India, the Amazon Dash which is a small device used to order items already pre-selected from Amazon is not available. Since Amazon is a worldwide producer of goods it should ultimately be offered for sale. India has flourished in the past couple of years through their economy and business ethics. Trade is more readily possible and their taxes have lowered due to economic changes in the years 2017-2018. Since their country is rich in culture and vast throughout, business is further possible, and current events have proven that.

Amazon faces threats that the company cannot ignore. First, the company has competition from various rivals, which include Salesforce.com, eBay, Wal-Mart stores, Best Buy, Apple, Netflix, International Business Machines, Barnes and Nobles, among many others. For example, Wal-Mart introduced a shipping policy to compete with Amazon’s Prime membership service. With this new policy, customers receive free two-day shipping on all orders of $35 or more. Second, cybercrime is present and Amazon should find ways to ensure that it always guarantees that customer privacy and security are protected.

Amazon.com, Inc. (Amazon.com), incorporated on May 28, 1996, is an American electronic commerce company with headquarters in Seattle, Washington and is the largest Internet-based retailer in the United States (Ungar, 2014). Amazon.com started as an online bookstore, but soon diversified, selling DVDs, Blu-rays, CDs, video downloads/ streaming, MP3 downloads/streaming, software, video games, electronics, apparel, furniture, food, toys and jewelry (Ungar, 2014). The company also produces consumer electronics—notably, Amazon Kindle e-book readers, Fire tablets, Fire TV and Fire Phone — and is a major provider of cloud computing services (Ungar, 2014).