It is often referred to as the online equivalent of Wal-Mart because of its reach and global footprint as well as its aggressive pricing strategies. SBlack Friday the Friday after the Thanksgiving holidayand in the several weeks leading up to Christmas, Amazon receives an overwhelming number of visitors to its sites.
In many ways, Amazon is to online retailing what Wal-Mart is to brick-and-mortar retailing. Amazon follows a cost leadership strategy, but so do many other online and offline retailers.
The high availability of substitutes and the low costs of their product offerings further increase the influence of substitutes against the company. What is the key to such success? Another recommendation Amazons competitive analysis for Amazon to address counterfeiting and cybercrime through intensified information technology measures for organizational and consumer security and protection.
As such, Amazon has tremendous brand awareness and compliments its online storefront with an extensive network of over 50 distribution centers worldwide.
Low switching costs correspond to low barriers for consumers to transfer from one retailer to another, or from one company to a substitute provider. It is recommended that the company must address the strong force of competitive rivalry by emphasizing competitive advantage and strengths of the e-commerce organization.
For example, the company must continue enhancing the usability of its website to optimize user experience. This strategy has resulted in the company reaping the gains from this course of action and has helped its shareholders derive value from the company.
Buyers Historically, online shoppers have been fickle.
Amazon can leverage on several opportunities in the emerging markets and can ensure that its global supply chain of networked warehouses deliver substantial value for itself and its stakeholders. Based on this aspect of the Five Forces Analysis of Amazon, the external factors emphasize the moderate significance of suppliers as a strategic determinant in the online retail industry environment.
Thus, the company must ensure that it remains resilient amid changes in the conditions of the online retail industry environment. Moderate forward integration equates to a moderate degree of control that suppliers have in the sale of their products to firms like Amazon.
To run an e-commerce website with millions of visitors each day the company had to invest heavily in its server infrastructure. We also provide easy-to-use functionality, fast and reliable fulfillment, and timely customer service.
Why then does Amazon outperform them? The global scope of the e-commerce business also exposes Amazon to a diverse set of external forces.
Now the company operates retail sites for companies like Target, bebe, Timex, and LaCoste. We strive to offer our customers the lowest prices possible through low everyday product pricing and shipping offers, and to improve our operating efficiencies so that we can continue to lower prices for our customers.
Five Forces Analysis of Walmart ].
For example, the company must continue enhancing the usability of its website to optimize user experience. As an incumbent of this magnitude, the ability for competitors to imitate Amazon is incredibly slim.
There are currently more than 90 million Prime members worldwide who use Amazon as their primary non-grocery retail store. Auction websites like ebay.This item: Strategic and Competitive Analysis: Methods and Techniques for Analyzing Business Competition by Craig S.
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Amazon Business Strategy and Competitive Advantage: cost leadership & customer centricity. Amazon Inc. Report contains a full analysis of Amazon business strategy.
The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis.
Key words: competitive analysis information, competitive marketing decision making A bstract Despite the strategic importance of understanding competitive structure and the dynamics of competitive behavior, there has been almost no empirical study of how managers perform these analyses.Download