What Is Amazon's Power?

This case study is concerned with the continual roll-out of Amazon’s global strategy through the development of resources and strategic capabilities. It is about global dominance through the development and use of technology and acquisitions and alliances to offer an increasing array of products and services and continually enhancing customer experience. The case discusses the widening of Amazon’s business through serving three distinct and different groups of customers. The case highlights a number of potentially disruptive technologies including Kindle and cloud computing.

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.

Amazon.com Inc. was initiated by Jeff Bezos in 1994 after realizing the rapid rate at which the internet and websites were growing in popularity among business organizations and individuals. In 1995, the company started operating its website for selling books, videos, compact discs, computer software and computer hardware before being incorporated in1996 as an e-commerce company (Reuters, 2015). Apparently, the company offers may products and services for sale; these products include merchandise for resale products offered by third parties. In this regard the

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.

Have you ever played monopoly? Not just the game Monopoly but the exclusive possession or control of something. Remind you of any company? Amazon. Amazon mostly cares about being on the top along with the other Tech Giants. Also, Amazon doesn’t care much about their workers and they’re allowing access for strangers to receive others information. Amazon is becoming too powerful!

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 has a bunch of growth strategies in place. Their number one strategy is the fact that they start with the customer and work their way backwards. To them as a company they live by what all companies should live by – customer satisfaction is their number one goal. Amazon.com themselves even said that even if that makes third-party sellers angry about low-priority placements (James). Another one of their strategies is instant gratification. The way they are pursuing this strategy is by keeping up with their Kindle device that they

Amazon runs on four principles: “customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking” (https://www.sec.gov/Archives/edgar/data/1018724/000101872416000172/amzn-20151231x10k.htm).

Amazon is known for taking over the e-commerce marketing platform. It sells almost everything; from vacuum cleaners to vitamins. Every couple of months, it seems like Amazon is taking over a new market. People today are arguing that Amazon is taking away competition. Some are questioning their ethics and antitrust processes and others feel that Amazon has not exhibited traits that typical monopolies express.

The threat of substitutes for Amazon is high. With the exception of its patented technology, there are quite a lot of alternatives to Amazon’s products and services. In addition to physical presence, most companies have an online store as well. Amazon’s products can be purchased all over the internet and they are just spread out among different web sites. The companies operate in brick-and-click mode providing the similar product categories and competitive prices have become the biggest threat for Amazon. However it is extremely difficult for Amazon to establish physical stores or launch price

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.

The company has many strengths. First, Amazon is the world’s leading online retailer. According to the 2016 Annual Report, Amazon had total net sales of US $135, 987 million in 2016. These total net sales include three segments which are North America, International, and AWS. Second, in comparison to many companies, Amazon has a superior logistics and distribution system, which allows the company to actualize improved customer fulfillment. Third, with its prolonged strategic drive on low-cost, differentiation, and focus, Amazon offers a wide range of product at low prices to customers. Fourth, Amazon enjoys global recognition from its customers. As stated earlier, Amazon built a strong brand in very little time. Finally, the

Amazon is a relatively small player in the bookstore industry, and its main competitors are Barnes & Noble and Borders. Despite the difference in scale, the company shows great promise, because its business model overcomes many of the competitors’ drawbacks.

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

The purpose of this video is to inform the viewer about all the different categories Amazon provides for the consumer and related news. When people think of Amazon, they most likely think of just the online shopping platform. However, the company has expanded into much more. Galloway predicts in his video, Amazon will be the first one trillion-dollar market capitalization company by 2020. Within the past couple of months, Amazon purchased Whole Foods. This is a win for the consumers because it will drive the price of groceries down at Whole Foods. Not only has Amazon captured the grocery market, but they are on track to pass the most dominant company in screen television, Netflix. Amazon is the fastest growing media company in the world in 2016-2017. They will soon be capturing big sporting events like NFL football games, The Olympics, and March Madness. This will put a huge strain on television companies causing them to slowly go out of business. Amazon also had the most innovative tech-product this year over Apple. They created a smart speaker in 2015, what is known as an Amazon Echo. The Echo is capable of voice interaction, music, setting alarms, telling jokes, providing the forecast, and other