Industry Analysis of Amazon: Market Positioning, Global Presence, and Size

Strategic management

TABLE OF CONTENTS
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Strategic management mainly accounts for the strategic utilization of the business
resources in order to accomplish the business goals in an effective manner. It is a continuous
process which undertakes planning, organizing, monitoring all the necessities g the
organization for meeting its objectives. Any change in the business environment will incur
the need for the organization to assess its strategies for attaining success. This essay provides
an industry analysis of the Amazon company with respect to the market positioning, global
presence and size. It also covers the comparison with its competitors in terms of innovation,
governance and ethics.
Company background
Amazon is the leading online retailer and an American multinational company which
is headquartered in Seattle, Washington. It is considered as an iconic example for the
manufacture of e-books, readers along with the web service provider. It is was funded by Jeff
Bezos in Bellevue, Washington, in the year 1994 with just selling books online. It then
expanded its to selling electronics, home appliances, furniture, food and health products, toys
and jewellery (Amazon.com. 2020). Amazon is having presence in not only e-commerce
industry but also in AI, Cloud computing and self driving car. The major strength of the
Amazon is its lower cost structure, large range of merchandise and large number of the 3rd
party sellers associated with it. Also, the synergies lying between the marketplace, AWS,
prime and the subscription services. The main weakness of Amazon is its imitable business
model, restricted positioning in the growing and emerging market and the limited physical
store presence.
Industry structure and market of Amazon
It can be stated that Amazon is world's top organizations as per the market value that
have resulted in increasing overall profit margin and sales of firm. As on 9 August, 2020, It
had $1.6 trillion market share in ecommerce business that have contributed in growth and
success of firm. The organization's net gain almost multiplied YOY in Q2 2020, which
finished June 30, 2020. Overall gain has increased from 99.7% to $5.2 billion for the
subsequent quarter contrasted with a similar three-month time span a year back
(AMAZON.COM, INC. 2020). Working salary became 89.5% to $5.8 billion. It have been
analysed that overall sales revenue or net sales, rose from 40.2% to $88.9 billion for the
quarter.