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Case Study on Amazon (pdf)

   

Added on  2021-06-22

6 Pages1400 Words396 Views
Amazon case study

Analyze Amazon.com using the competitive forces and value chain models. How has it responded to pressures from its competitive environment? How does it provide value to its customers?Amazon is in the leading position as online retailers (lunden, 2018). The company expanded during the period 1900 and its products were mostly books, electronic equipment’s, CD’s. Amazon succeeded in their venture because of high emphasis on customer service. Technology assisted them because their operations were mostly online rather than physical services. The company has a lot of competitors starting from reputed brand organizations to small scale online stores. The company has a better competitive advantage over the rivals. The competitive forces are:Bargaining power of buyers: Amazon gives high emphasis on customer service, demands, superior quality products. Customers are provided lots of opportunities to choose brand new products or unique used products sold by various users. The bargaining power of Amazon customers is extremely high. Bargaining power of suppliers: The power of suppliers can be considered as average. Amazon takes overall control of quality in terms of supplies. They deal numerous suppliers and puts restrictions which are bound to be followed by the suppliers. Threat of substitute commodities: Threat of substitute products and commodities can be considered as medium. The company faces competition with rival online stores. Physical stores are a threat but Amazon has huge brand recognition and loyal customers to overcome these issues.

Threat of new entrants: New entrants won’t affect Amazon. The company has flourished for a long period of time because of their unique services and response to customer needs. To surpass this brand will be extremely complex. Loyal customers continuously purchase from this brand. Threat of Rivals: Threat of rivals is high among online retail firms. Amazon constantly faces rivalry from both small and large retail companies such as Walmart. Even though the level of completion rises, Amazon has still maintained top position in the industry. Value chain model of Amazon includes: Inbound logistics, outbound logistics, operations, marketing and sales, service (Dudovskiy, 2018). Amazon is facing huge pressure due to technology evolution. The company is constantly improving new methods to defeat rivals. The management employees and technicians are constantly upgrading services. Failure to take hold of online commerce market, the company inaugurated voice command gadget known as Echo. This gadget provides various services such as listening music, weather updates. Greater achievement over competitors was evaluated by this gadget initiative. Amazon provides values by offering unique products and services and meeting satisfaction of customers. Quicker deliveryof products are initiated. Greater commitment initiatives and constant update of technology in services make the brand loyal to the customers. Describe Amazon’s evolving business strategy. Why did the company change its strategy?Amazon’s business strategy was to mature with the evolving changes of technology(Keller, 2018). With the expansion of growth, the needs and demands of customers increased. Amazon met these needs by providing variety of products. Long term business decisions were taken. The key to earning profit in any retail business is learning to adapt with the changes. Technology

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