Amazon.com – A Detailed Study

This document provides a detailed study of Amazon.com, the largest e-commerce marketplace worldwide. It includes information on the company's current customers, product offerings, strengths, weaknesses, and recommendations for improvement.

Running head: AMAZON.COM – A DETAILED STUDY
Amazon.com – A detailed study
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1AMAZON.COM – A DETAILED STUDY
Chosen company: Amazon.com
Amazon is known as the largest marketplace of e-commerce worldwide. The founder
of the company is Jeff Bezos. It was founded in 5th July, 1994.
Current customers of the company
Amazon.com has various sorts of current customer namely consumers, vendors,
enterprises, and content providers.
According to a research partner regarding the intelligence of the consumer, 45% out
of all the customers of amazon are a registered user of Amazon prime i.e. approximately 40
million of customers around the world. One-day delivery and a better loyalty program is the
benefits which they are getting because of their prime membership (Amazon.com 2019). On
the other hand, roughly 39% out of the total customers of Amazon in U.S. are using amazon
kindle e-readers or tablets which are owned by the company amazon itself, 7% are using
Kindle fire sticks or TV boxes and amazon fire smartphones are used by less than 1%
(Sumner-River 2015).
Demographic and psychographic: Well-known e-commerce company amazon try to use
their segmentation of demographic & psychographic to segment their market. This process is
completely based upon the purchase behaviour of the customers.
Buying behaviour: Customers are buying the product online through the internet. They
directly buy any items or goods or products from a registered seller over the internet.
Price sensitivity: Amazon changes the price of their product frequently almost 2.5 million
times in each day. For this, some customer is getting annoyed whenever they saw the price
drop just after they have purchased it, but at the same time it also helps them to boost their
profit by 25%.

2AMAZON.COM – A DETAILED STUDY
Customer satisfaction: It is generally known for the best customer satisfaction. Currently,
Amazon is the no. 1 rank holder in satisfying their customer.
Customer loyalty: This is the thing that will attract the targeted customer. So that the
particular product is being repurchase by them.
What do the customers buy/use?
Amazon customer literally have so many options to buy. As it sells more than 200
million of products across 35 categories of department in the US alone. Amazon offers quite
a large number of departments namely clothing department, sports and outdoors departments,
office products, jewellery department of amazon, departments of electronics, beauty, baby
products, quite a large number of grocery items and much more. These are all the
departments offered by amazon to all their customers from which they can use or buy.
Expectations of the company in the future
We can assume to see even more growth in Amazon’s future (Gloor et al. 2015).
Amazon’s has a long-term plan that includes “ramping up its shipping services and
continuing to have a predictable delivery system”. Three areas of focus include an
uninterrupted growth momentum, expanding services such as their drone project, and
diversification as they increase video-streaming service capabilities.
Opportunities
 There is a certain rise of the buyers on or over the internet
 In US e-commerce, there is an increase in forecasting.

3AMAZON.COM – A DETAILED STUDY
Threat
 There is a huge number of competitors of amazon in the present market and they are
potentially growing
 In the world economy, regulations and rules of the government posing a threat to the
company
Strengths as well as weaknesses of the company
There are several strengths of Amazon.com. Few of them are as follows: -
 Brand is literally so strong
 Product mix is widespread
 The collections of revenues is at its peak in the industry
In todays online retail markets, Amazon.com has the strongest brand name. This is
referred to as the strength that is partially blameable for the immense growth of their business
in initial times. Because of the presence of the widespread of product mix makes it easier for
its customer to find out the products which they are in need or the products which they want
on the website of the company. In this process, they are fulfilling their statements of vision
and mission. This strength supports the attractiveness of the services, which consider to be a
vital in the maintenance of the success of the firm. Other than that, the collection of revenues
is at its peak in the industry and it is referred to as a strength within the company. If we take
an example, it allows amazon to do their investments in the newly starring business ventures
or in the production of any of their new product. That the company is having a strength are
shown by the facet within the SWOT analysis which is very necessary to maintain its position
in the market within the e-commerce sector (Khan and Sagar 2015).

4AMAZON.COM – A DETAILED STUDY
Some of the weaknesses of Amazon are:
 Having a business model which can be easily imitable
 There is a very less presence of brick as well as mortar
 There is a limited penetration in markets which are under developed
Amazon has a business model which can be easily imitable by others. By taking an
example, an online retailing website can be easily initiated by any other firms which sells
nearly each and everything. It is also known to us that most of the revenues which is being
generated by amazon are mostly came from the developed countries, for example the United
States. At present generation where other firms becoming fully established in the market of
developing countries, it is becoming difficult for amazon to enter and compete with each
other in such kind of a market. The company must maintain in a strategic way the online as
well as offline competitive benefits in order to overcome the adverse effects faced by them of
its weaknesses.
In what manner can the company improve their weaknesses as well as how
can they maintain or have a rise in their strengths
New products can be added by amazon to its stake of goods. The brand name of the
company is such an established one. But it will be rather helpful to the company if they use
their potential in order to achieve the desired profits. The brand can make an initiative to
concentrate on selling their own products more. One of their own product named fire
smartphone was unsuccessful but that should not be the cause for any encourage issue of
amazon. There are some reasons behind the unsuccessful story of their own smartphone.
They were offering very less product which is not sufficient living in a period where nothing
is said to be sufficient. For now, this gives a strong lesson to amazon and due to this they
came to know more about the expectations of its registered customers. The company should

5AMAZON.COM – A DETAILED STUDY
have launch products that are of great quality like they did in the past with their most
successful own product namely ‘kindle’. By keeping an eye on the markets of the Asian
countries where they can get a higher rate of sale of production. The use of smart store also
can boost their sales which can be an alternative way. It seems like amazon is trying to make
a plan for doing something big by pushing up its grocery stores. Nevertheless, the company
itself could try for modification in order to increase their profits as well as to generate
revenue regarding the new sources.
Business environment of the company
The company named Amazon.com and e commerce can be called as the only industry that is
growing and job growth as people are getting more jobs (Girotra and Netessine 2013).
Political factors: The hurdles which is faced by e-businesses are not at all same if they are
compared with the traditional one.
Legal factors: Amazon has a separate legal team which is looking after the legal issues as
well as challenges.
Economic and technological: - Amazon can get better sales as well as higher profits if the
market’s economic condition is good. Better technology will help in betterment of the
company.
Social factors: - The increase in the use of mobile phone and the sudden growth in digital
technology will directly effect on the sales of Amazon.
Details about the business partnership of the company
The term business partnership can be defined as an exact legal kind of relationship which is
formed in between more than two or exactly two individuals who have the ability to carry out
a business playing as a role of co-owners (Zhu and Liu 2018).

6AMAZON.COM – A DETAILED STUDY
Yes, Amazon have a current partnership. Nike is the other brand which might be a
good partner for them. Their partnership appears to be a successful one for each of the
company (DaSilva 2013).
Key competitors of Amazon.com
There are a lot of competitors in the current market. They are:
1) Walmart
2) Alibaba
3) eBay
4) Otto
5) Priceline
6) Costco
7) Home depot
8) Kroger
9) Walgreens
10) Tesco
Three key recommendations based on the above analysis
1) I would like to recommend the management team of Amazon is to concentrate more upon
the market of Asian countries. As the Asian market is progressively growing at a higher
rate. As there is a chance to expand their market they should invest more on the Asian
market and therefore there is a chance to increase their profit margin.
2) I would like to recommend Amazon to consider expanding its operational needs even in a
far better way. By increasing the product which they are offering will help Amazon in a
far better way to fought against their competitors such as Walmart and Alibaba.

7AMAZON.COM – A DETAILED STUDY
3) I would like to give another recommendation to Amazon that they should deal more with
the innovation in their working technology. If the company deals more with innovation, it
will gradually help them to remain a tough competitor in the market of today’s
generation.

8AMAZON.COM – A DETAILED STUDY
References
Amazon.com. (2019). Amazon.com: Online Shopping for Electronics, Apparel, Computers,
Books, DVDs & more. [online] Available at: https://www.amazon.com/.
DaSilva, C.M., Trkman, P., Desouza, K. and Lindič, J., 2013. Disruptive technologies: a
business model perspective on cloud computing. Technology Analysis & Strategic
Management, 25(10), pp.1161-1173.
Girotra, K. and Netessine, S., 2013. OM forum—business model innovation for
sustainability. Manufacturing & Service Operations Management, 15(4), pp.537-544.
Gloor, M., Barichivich, J., Ziv, G., Brienen, R., Schöngart, J., Peylin, P., Cintra, L., Barcante,
B., Feldpausch, T., Phillips, O. and Baker, J., 2015. Recent Amazon climate as background
for possible ongoing and future changes of Amazon humid forests. Global Biogeochemical
Cycles, 29(9), pp.1384-1399.
Khan, M.A. and Sagar, P., 2015. Emerging trends and advanced SWOT analysis of e-
commerce in Indian context. International Journal of Science Technology &
Management, 4(2), pp.150-159.
Sumner-Rivers, R., 2015. Amazon’s Prime Ambition. Parcelhero Industry Report.
Zhu, F. and Liu, Q., 2018. Competing with complementors: An empirical look at Amazon.
com. Strategic Management Journal, 39(10), pp.2618-2642.