BUS3005: Comprehensive Analysis of Amazon Company's Innovation

This report provides a comprehensive analysis of Amazon, examining its business strategies, market position, and innovation capabilities within the context of the Australian market. The report delves into Amazon's history, industry structure, market position, and market size, highlighting its strategic innovations such as the virtual dressing room. It explores the company's corporate social responsibility (CSR) initiatives, governance, and ethical practices. Furthermore, the report analyzes the internal and external factors influencing Amazon's innovation and development, including human resources, political conditions, technological advancements, and legal considerations. The report concludes by emphasizing the crucial role of innovation in maintaining a competitive advantage and recommends that Amazon continues to adopt effective strategies to stay ahead of its competitors and capitalize on new technologies to maintain a strong market position.

bus3005
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Table of Contents
Introduction.................................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK...............................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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Introduction
Main objective of this essay is to better understand the concept of business. A
business is a group of people which is formed for the purpose of achieving
maximum profitability. It was analysis that for achieving higher success an
organisation will require to adopt effective competitive advantage in market.
Achieving competitive advantage in market is not an easy task as because of
increase in the development of economy the level of competition will also increase
(Castela and et. al. 2018). There are many other organisation who sell the same
product and services as the other organisation. For achieving higher success they
are require to adopt an effective and innovative strategies. Innovation will play an
essential role in the growth and success of a business. Innovation means offering
something new and unique to their customers which will help an organisation to
achieve competitive advantage in market. It will help them to make higher
profitability and create a good brand image through their unique products. Now a
days organisation will expand their business in other country for expanding their
target market but they will also face a huge amount of competition for that they are
require to effectively analysis the internal and external factors which will influence
their growth. For this report Amazon Company is taking into consideration. It is an
American multinational technology company which main focus is on e-commerce,
cloud computing, digital streaming and AI. It was founded by Jeff Bezos in 1994. It’s
headquarter is in Seattle, Washington, U.S. more than 1298000 numbers of workers
are successfully work with them throughout the world. This report will include a
brief background of selected company. It will include the various factors as compare
to its closest competitors. Other than this it will also include the internal and
external factors which will influence the terms innovation and development.
MAIN BODY
TASK
Company background
Amazon was founded by Jeff Bezos in July 1994. He will chose Seattle
because of technical talent as Microsoft is also located there. In 1997 Amazon went
public company. It will start to sell music and videos in 1998 & that time company
will start their operations at international level by acquiring online sellers of books
in UK and Germany. It is consider as one of three big company in the U.S
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information technology industry. The selected company will referred to as one of
the most influential economic and cultural forces in the world, as well as it was
consider as the world most valuable brand. It is a multinational company will
achieve higher growth through their effective strategies and innovation. Company
will use various kind of innovation technology which will assist them to achieve
competitive advantage in market. Company will expand their market size by dealing
in various products such as to sell electronics, software’s, video games, jewellery,
toys, food, and furniture and so on. In 2017, company will acquire the whole food
market in US$13.4 billion, which will help them in increasing its footprints as a
physical retailers. Amazon is well known for its disruption of well-established
industry through technological innovation and mass scale. It is consider as world
largest online marketplace company. It is also the largest internet company in
terms of revenue in the whole world. For this report market of Australia is taking
into consideration (Gerlach, Hundeling and Rosing, 2020).
Industry structure-It refers to the various attributes that is the enduring
features which will give different character to an industry. In other words is the
basic underlying characteristics which will assist in shape the competitive strategy
for a group of firms which are producing the close substitutes for each other. It was
analysis that structure of technology industry will very large in Australia which will
assist selected company to achieve higher growth and profitability. It was analysis
that more than 600000 people are work under this type of industry in 2014 but in
2022 it will increase up to 722000. The service sector will make up the large part of
the Australia economy. The country is consider as to have world advance
technology, data, analytics, machine learning and various robotics devices will help
an organisation in achieving the competitiveness and productivity. By operating
their business selected company will gain knowledge about various type of
technology which will help them to use these technology in other country and
achieve competitive advantage in market. As per the level of their industry the level
of competitors will also increase (Kumar and Murray, 2019).
Market position- It will define the ability of an organisation to influence the
customers perception exist in the market. It will help an organisation to achieve
superior margins regarding brand or products of their competitors. It was analysis
that company will reveals so that their customers will perceive it in a certain way.
Market position will define the strength of an organisation. It will how the loyal
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customers of company and brand image of company. In context of selected
company, they have a good market position in the Australian market. As because it
was analysis that its sales are reach around 10 billion Australian dollars in 2026. It
was analysis that after the COVIDE-19 situation its sales will double because people
are more prefer to buy products online. Other than this it was analysis that amazon
sales are increased by 60% which is around 2.6 billion in 2020. It was analysis that
selected company will make an effective position in the Australian market through
its large physical stores.
Country markets and size- The market and its size will be analysis with the
help of total number of potential customers to which as organisation will sell its
products and services. In other work market growth and size will be determine
through numbers of buyers and how fast their taste and preferences are changes.
The size of a market will be measured either as unit of sales or the turnover of a
product in a specific period of time. In context of selected company, it was analysis
that their site will attract around 14.3 million viewers which is based on the similar
web data. Company will cover a large market size which will assist them to attract
more and more customers towards their products. Amazon will cover a large target
market by providing various types of products such as toys & games, electronic
gadgets, camera, books, cloths, beauty products and so on. This will increase the
sales of their product and help them to achieve better profitability (Boone, Kurtz
and Berston, 2019).
Innovation and strategic innovation- It refers to a significant positive
change which will assist an organisation in achieving their goal. While strategic
innovation is an organisation process of reinventing or redesigning its company
strategies and help them in enhancing the business growth & generate more
revenue and values for their customers & company. In context of selected
company, they are innovate new virtual dressing room for their customers. Which
will provide something unique to their customers as compare to Walmart. It was
analysis that Walmart is the biggest competitor of selected company but with the
help of their innovation strategies Amazon will achieve competitive advantage in
market (Wang and et. al. 2017).
CSR- It was stand for corporate social responsibility. It was analysis that an
organisation will consume the society resources so, it was the duty of company to
conduct activities for the welfare of community. Fulfilling social responsibility will
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create a strong brand image of company. In context of chosen company, they are
successfully fulfil their corporate social responsibility. They will implementing
frustration free packaging program which will promote low waste, easy to open and
also 100% recycle packaging material. Which will assist in reducing their carbon
footprints and also save the environment from pollution. They are also try to use
electric delivery vehicles on the road of Australia which is another contribution of
company. While on the other hand its competitor will also adopt various strategies
which will reduce their carbon footprints (Uyarra and et. al. 2020).
Governance and ethics- Amazon corporate governance will define that
board of directors of company are responsible for the overall control on company
various activities and provide effective direction to company. It will represent the
accountability to their shareowner. Main aim of the board is to build a long term
value for shareowner. While on the bases of ethics of amazon they are promote a
safe and healthy workplace which is free from harassment and danger. They will
promoting the freedom or their employees to perform their duty effectively. While in
context of Walmart, their corporate governance experts and engages with
important stakeholders for promoting more values and in terms of ethics company
code of conduct will include three basic points which are respect for the individual,
services to the customers and striving for excellence (Pustovrh, Rangus and
Drnovšek, 2020).
Strategic landscape- It refers to the critical uncertainty which will change
the future business environment in which an industry will operates. It will include
disruptive technology, societal shift, demographic change, economic change and so
on. It was analysis that selected company will adopt a theory of Greenway strategic
landscape planning. It refers to a strategic action of an organisation which include
various theories and methods of landscape planning that will assist in the
achievement of goal. In other words it is a category of sustainable design in
concerned with the planning and design of the built and natural environment. Their
re various methods are used by selected company such as recycling, restoration
and so on. This will help company in effectively fulfilling their CSR activity which will
attract more and more customers towards company and help them to generate
more profit (Padró and et. al. 2017).
Analysis internal and external landscape influencing the innovation and
development of company.
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There are various internal and external factor which influence the growth and
success of an organisation. Internal factors are available inside the business and
organisation will have some control over these factors. While external factors are
the factor which are available outside the business and influence the innovation and
development of company. Company have no control over these factors. In context
of selected company, it was analysis that human resource of company will influence
the innovation and development of company most. It was analysis that company
have highly skilled and trained employees which will positively influence the
innovation as such they are providing various new ideas which help company to
introduce new innovation in their company and achieve the competitive advantage
(Lavrenova, 2019).
In case of external factors there are some factors which will positively
influence the innovation and development of company but also have some negative
factors. Such as good political condition will promote innovation, and because of
increasing awareness related to sustainability of resources and rapid rate of change
in technology will help company to innovate something new. While on the other
hand legal factors will negatively influence the company. It was analysis that any
change in the legal policies will directly influence the growth and operations of
business (Huiying, and et. al. 2017).
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CONCLUSION
From the above discussion on this report it was analysis that innovation will
play an essential role in the growth and success of a company. As because it will
assist in achieving competitive advantage in market. Innovation means offering
something unique and creative which will attract more and more customers towards
company and assist them in generating more profit. It was analysis that there are
various internal and external factors which will influence the growth and innovation
of company. It was recommended that select company will require to adopt an
effective strategy which will assist them to effectively compete with their
competitors and timely innovate new technology will assist them to maintain a
strong position in market.
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REFERENCES
Books & Journal
Castela, B.M., and et. al. 2018. Assessing the innovation capability of small-and
medium-sized enterprises using a non-parametric and integrative
approach. Management Decision.
Gerlach, F., Hundeling, M. and Rosing, K., 2020. Ambidextrous leadership and
innovation performance: a longitudinal study. Leadership & Organization
Development Journal.
Huiying, L., and et. al. 2017. Brownfield Redevelopment Based on Theories of Urban
Regeneration and Landscape Urbanism: A Case Study on Changchun Tractor
Factory. China City Planning Review. 26(1).
Kumar, P. and Murray, G., 2019. Innovation in Canadian unions: Patterns, causes
and consequences. In Paths to union renewal (pp. 79-102). University of Toronto
Press.
Lavrenova, O., 2019. Genesis of Culture in Space. Conception of Cultural Landscape
in Context of Cultural and Philosophic Research. In Spaces and Meanings (pp. 11-
52). Springer, Cham.
Padró, R., and et. al. 2017. Does your landscape mirror what you eat? A long-term
socio-metabolic analysis of a local food system in Vallès County (Spain, 1860–1956–
1999). In Socio-metabolic perspectives on the sustainability of local food
systems (pp. 133-164). Springer, Cham.
Pustovrh, A., Rangus, K. and Drnovšek, M., 2020. The role of open innovation in
developing an entrepreneurial support ecosystem. Technological Forecasting and
Social Change. 152. p.119892.
Tseng, F.C., Huang, M.H. and Chen, D.Z., 2020. Factors of university–industry
collaboration affecting university innovation performance. The Journal of Technology
Transfer. 45(2). pp.560-577.
Uyarra, E., and et. al. 2020. Public procurement, innovation and industrial policy:
Rationales, roles, capabilities and implementation. Research Policy. 49(1).
p.103844.
Wang, C., and et. al. 2017. Green insurance subsidy for promoting clean production
innovation. Journal of cleaner production, 148, pp.111-117.
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