Report on Business Analysis of Amazon

UNIVERSITY OF HERTFORDSHIRE
Session: 2020/2021
BUSINESS SCHOOL
Business Administration SDL
Module Code: 6WBS0036
DIGITAL ECONOMY
DURATION OF EXERCICE: 3 HOURS + 0.5 HOUR submission
Student UH ID: .....................

PLEASE, TYPE YOUR ANSWER TO THE QUESTION ON THIS PAGE.
USE AS MANY PAGES AS NECESSARY.
Present your answers in a report format using heading and subheadings.
Maximum recommended word count is between 1500-2000 words
Amazon
The online retail purchasing services provided by Amazon.com, Inc. It offers services to four main
customers: consumers, sellers, businesses and producers of content. Other promotional services, for
example internet advertising and co-branded credit card agreements, are available from the
Company. It offers consumers choices, affordability and convenience through its retail websites. It
builds its websites to allow its items to be offered through dozens of product categories by the firm
and by third parties. It also makes and sells the Kindle e-reader and aims to provide consumers the
lowest possible price by offering cheap daily products and free delivery (Anon., 2021). There are
quite a few major issues they are currently facing are the rapid increase in competition they already
had large competitors like Walmart also now it has become much easier for other online retailers to
enter the e-commerce market so new entrants are also a major threat to Amazon. Also having high
competition increases the threat of substitute products for consumers as consumers would have lot
of choices to choose from and can easily find a substitute product for any other e-commerce retailer.
Also, major threat is coming from Asian e-commerce companies which are expanding in US and
Europe for e.g. Alibaba this becomes a major threat for Amazon. Despite being a giant in e-
commerce Amazon has not proven themselves in Asian market and have to come up with a
marketing strategy to prove themselves in Asia market. Also low margins are one the issues for
Amazon despite having a good cashflow margin on products are not good. Considering all these
issues the major issue amazon faces is the competition from other e-commerce companies like
Walmart and Alibaba.
Future e-business/ Digital strategy
We have already examined the swot analysis of the amazon in CW1 so by taking that into account
we have to make digital staretgy for amazon for that we will be using TWOS to have better future
digital plans for amazon
Amazon Strenghts
Third most popular brand of
the world
Commands superior buying
power
Huge range of products
available
Weaknesses
Has yet to prove themselves in
asia
Amazon has yet to develop a
leading brand of hardware
products
Bad press and coverage about
employee treatement is
damaging the brand
Opportunitites
Growth opportuinties. Exist in
developing markets e.g
SO Strategy
Partner with leading AI
hardware for better customer
WO Strategy
Should target growing markets
in Asia like Pakistan

Pakistan
Expand range which in turn
will provide higher margin
opportunities
Enter new market such as
healthcare which is a huge
market
experience
Adding new products giving
customer more choice
Bangladesh and india
Threats
Large global players are
aggressively attacking Amazon
e.g Walmart and Alibaba
Several Asian competitors
couls expand in US and Europe
Several goverments are
investigating Amazons
practices and policies with
regard to fair play and anti
competitive practices
ST Strategy
Adding new and unique
products can give them
competitive edge towards
their competitors as they have
loyal customers and huge
market share
WT Strategy
Can use didtal marketing and
social media to penetrate in
Asian market as it is
developing and can also gain
advantage over its competitors
Amazon already have an competitive advantage over their competitors by having huge market share
other than that they could use different digital strategy. It follows that the Amazon technology
infrastructure must readily support this culture of experimentation and this can be difficult to
achieved with standardised content management (Chaffey, 2021) Amazon has achieved its
competitive advantage through developing its technology internally and with a significant
investment in this which may not be available to other organisations without the right focus on the
online channels. We now have a strategy to concentrate our development efforts on continuous
innovation through the development and development of specialised, exclusive proprietary software
for our business and to licence or acquire commercially developed technology for other applications,
where appropriate and available. (Willden, 2020)
Social Media Prescence
To assist grow its use of the social media more strategically, a firm should evaluate the sort of
content marketing it employs! Amazon is a B2C e-commerce company that focuses on content for
sale to its products. The use of the content marketing framework at Chaffey would thus be as follows
Content Engagment value  Celebrity endorsments
Content Media  Mobile app
 Podcast
 Hosted and streamed videos
Content Syndication  Content provided through feeds to
third party websites
Content Participation  Customers surveys and comments
 chatbots
Content Access Platform  desktops
 mobile
 laptops/tablets