Iii competition in each of the three pillars of its

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entrants as Amazon already enjoys a huge market share. iii) Competition In each of the three pillars of its operations, Amazon is facing stiff competition. In the AWS business segment, the company is facing out with giant tech companies like Microsoft, Google who have lately been investing in their cloud computing services. AWS is facing stiff competition from China’s Alibaba which has plans underway to invest 1 billion Dollars in cloud computing services (Aliyun) to face out AWS. Alibaba has a competitive edge over Microsoft and Amazon in China considering its wide consumer base and its strategic ties with government agencies. However, AWS and Microsoft’s Azure have plans in place to increase their web presence in China. In fact, for the past 10 years, Amazon has been working to increase its Chines customer base by setting up a Chinese website, Amazon.cn (Pandit, & Poojari, 2014) . Amazon Prime is another segment that has been growing rapidly over the past few years. However, this is not without competition from eBay, WalMart and Target. However, Amazon Prime has kept ahead of its competitor by offering exclusive deals, fast and free shipping and delivery, videos and music. Amazon Prime has also extended its services to online grocery and restaurant delivery. The company has a competitive edge over its competitors in these areas considering its expansion of the one- hour delivery services in 10 markets already. In its Prime Video product that mainly allows consumers to stream video content, there has been increased
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subscription to these services which has in turn increased the number of subscribers to Prime (Stevens, 2016). This segment has performed better than its competitors as indicated in the chart below. iv) Potential of growth Amazon operates in a technology-driven company and as such, potential of growth is very high. The company has witnessed consistent growth owing to its increasing sales from its e-commerce business as well as increased growth in cloud computing services. Although the company has reported both losses and profits, it has been able to manage its fortunes and registered operating margins that were consistent for the last four quarters. It is expected that the company’s earnings will rise by 43.2% per year for the next five years. Considering the success of its AWS, Prime and Market place, Amazon will remain a market leader for a long time .
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v) External and Internal Analysis This is as earlier analyzed using the SWOT analysis. Recommendations From the above analysis, there are several recommendations that will help Amazon to stay ahead of its competitors. First, there is need for the company to continue embracing innovation in its business segments. In a global era that is characterized by uncertainty and dynamism, innovation is the only way a company will be able to deal with uncertainties in the business environment and turn them into business opportunities. It is also recommended that Amazon continue partnering with more retailers and manufacturers to increase the variety of products to its customers. The marketplace has been fetching good revenues for the company and getting more partnerships will mean more products for the customers.
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