Business Analysis of Amazon.docx - AMAZO N BUSINESS PLAN 2...

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A MAZO N B USINESS P LAN
2 Contents Company Profile: ............................................................................................................................. 3 Amazon’s Sales Strategy: ................................................................................................................ 3 Competitors Analysis: ...................................................................................................................... 3 Amazon & Competitor’s Business Strategy: ................................................................................... 4 SWOT Analysis of Amazon: ............................................................................................................ 5 Porter Five Forces Analysis of Amazon: ......................................................................................... 7 Success Factors for Amazon: ........................................................................................................... 9 Conclusion: ...................................................................................................................................... 9 References: ...................................................................................................................................... 9
3 Company Profile: Amazon.com Inc is engaged in the business of consumer products and international subscriptions along with subscription in North America. Company carry out its operations through web service segment, internationally and North America. Company is also engaged in manufacturing of electronic devices like Fire TV, Echo and Kindle –e- readers. Kindle direct publishing portal allows many writers to load their books in Kindle store. Company is also providing various products and services to individuals and companies including content subscription, co-branded credit card agreement services and advertisement. Company was founded in 1994 and having it’s headquarter in Washington. Based on its total sales volume and market capitalization, it is major online retailer. ( Steele, B. 2017) Amazon’s Sales Strategy: Amazon is surviving and attaining accelerated growth through its multi level sales strategy. Initially Amazon started with their focus on business to customer’s relationship between its customers and itself. Then they started business to business relationship between suppliers and itself. Finally they also started customer to customer transaction being intermediary to facilitate the customers. Some lager seller are also using company’s portal to sell their products. Amazon also allows drop shippers and Meta seller to use its portal. (James, Marcus 2004) Competitors Analysis: Amazon is aiming to increase the market share in the industry by introducing new products and services to its customers by keeping the cost low. To facilitate their goal they have adopted the strategy of low cost differentiation as the industry demands this from the market leader to have bigger market share. Amazon is keeping a balanced strategy in the industry to capture more clients as they are focusing on the differentiation in the products and the services they are
4 offering to their valued customers while keeping the coat at lower side. This balance strategy is helping the company in increasing the customer loyalty with the brand and to increase the customer base. eBay’s goal is to maximize shareholder value by adding customers to the customer base through value added services to vide range of customers. They have adopted the Porter generic strategy of Low Cost Leadership. They are capturing the market by keeping the cost at lower end but only

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