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Amazon’s Global Strategy

STEEPLE

Technology Kindle-unveiled in 2007, to enable customers get easier access to download; Amazon web services-data are accessible via internet and lastly digital contents-digital music for a non-restricted music. Accessibility-the main function for technology invention is customer accessibility.
Economic Advertisements of its activity across the world, new sites launch for customers with specific requirements, free shipping especially at night, phone support 24 hours a day. one stop shopping ,taxes,250 and 15000 plus styles of handbags and shoes, two music stores, classical and go Indie music stores
Environment Friendly packaging, internet pollution ,electricity consumption
Strategy Structure and prices at a lower cost, sellers, traffic, customers experience, convenience as well as selection
Competitors Physical world retailers, vendors, publishers, manufacturers,  distributors and producers of Amazon products. Some of the competitors are the wall-mart, Barnes and Noble. Other competitors are Mobile and online e-commerce sites. also sites that sell and distributes content in digital form
Alliances and Acquisitions Led to access to capital, Amazon wide customers and the management expertise, sewing tools, patterns as well as accessories
employment/educational Training of employees on how to use available technology, creation of jobs
Legal Illegal copy of publications, Playing and downloading mp3 music
political No influence

 

Porter’s five forces

Bargaining power of the customers

  • High bargaining power of the buyers
  • Many different products  and services online
  • Low enough prices to fit the customers’ pockets
  • Little over head costs
  • It is the highest customer centric company and bears an excellent tactics for customers. new tactics to customers attracts customers

Suppliers’ bargaining power  

  • The company has medium bargaining power for the suppliers
  • Amazon is busy  large products in order to offer everyone everything
  • Amazon can not compete with suppliers therefore they have higher power

Threats of new entrants

  • Low threat for entrant competitors ,since it is difficult for a new entry to shoot to the level of the and magnitude of the Amazon.com
  • High threats for substitutes
  • High Competitions

Threat of substrate services and products

  • High threat on the Amazon substrates, most company has online stores
  • Purchase is online therefore, they can easily get substrate, and one of the known Amazon substrates in the U.K is the Argos
  • Music entertainment store do offer what Amazon is selling
  • Kitchen products can be purchased at the IKEA

Intensity of competitive

  • High rivalry among the competitive firms
  • Indirectly competes with online retailers
Strength

  • Amazon is known as a well  established company , this was a strength since many customers did trust the company unlike the other new companies in the market
  • A million dollar company, engaged in a marketing operation of four-activity type
  • classified as one of the online retail due to the strategy of utilizing a generic marketing type
  • perfect brand, for identification, reliable and spread almost 10,00 items of different sizes
Weakness

Scarcity in resources, no ground representatives to get in touch with the customers, late deliver to the customers outside U.K, lack of adequate knowledge in the technology used by the Amazon.com

Opportunity

Good ideas by the management team

Extensive coverage in developing certain sites for certain specific products

 

Threat

Insecurity form internet frauds, many sprouting competitors ,Change in the technological world, other related stores that sell music and  kitchen products

Resources and capabilities

Resources

DVD,CDS, used books as well as other products in line with  the new versions

capability

Good operating capability, depends on the creditors for the maintenance of the high growth rates, high financial and liquid flexibility.

Key success factors of Amazon.com

  • Competitive prices
  • Webb design that is straightforward
  • Friendly interface
  • System that is convenient when it comes to payment
  • The Company had a unique shopping experience

Sustainable competitive advantage and Strategy

Since Amazon was main an online company they strategized the shipping process. Where customers could be shipped to their destination. Besides, they had a central stage in countries as like the North America, Europe and Asia. The above did facilitate the sustainable capability where the company staged a well strategy to beat their competitors and achieve the above phenomena.

  Sales ( USD) Employees Market cap Net income(USD) Net profit Margin

 

eBay 2 4 5 8 6
Amazon.com 1 4 6 9 8

Comparison SFA analysis of two development directions

It is evident following the above information that the above analysis shows clearly how Amazon.com had many employees during the year 2008.due to many employees and several technological involvements, the company y did not experience as much profit as eBay, which had few employees and ran on a small scale. Further, it is pertinent to note that Amazon, did divide the whole company in several parts. Some of the parts are the development and technological content, distribution and supply chain. Distribution represented the distribution centers where the Amazon ensured a good relationship between the business-to-business options of the client. Lastly, another part was the product development. Here, there were several departments as the marketing, editorial, pricing, website designing, ecommerce solutions, navigational sites and kindle. The above are the parts that propelled Amazon to its heights.

SPACE Matrix Model:

Internal Strategic Position External Strategic Position
Competitive (CA)

Product Quality

Service and Transaction with Consumers

Brand and Image

Market Share

 

-1

-1

 

-3

-2

Industry (IS)

Barriers to Entry

Growth Potential

Consolidation

Expansion and Development

 

+6

+4

+4

+5

Financial (FS)

ROA

Leverage

Liquidity

Cash Flow

 

+5

+4

+6

+5

Environmental (ES)

Technology

Communication

Demand Elasticity

Taxation

 

+2

-1

-2

-4

 

Noted from this particular plotting of values indicates that the strategic growth of the company lies more on the conservative level of development whereas Amazon is supposed to take on traditional yet innovative conditions of business operation to be able to retain in the industry of online selling. [first quadrant: conservative/second quadrant: Aggressive/third quadrant: defensive/fourth quadrant: competitive]

Porter’s generic model

Advantage

Target scope Low cost Product uniqueness
industry Cost leadership strategy Differentiation strategy
market Focus strategy

(low cost)

Focus strategy

(differentiation)

 

Strategy attractiveness

It involved a well analyzed technological plans, where people could get what they need by a simple click. The above was proved influential since many customers were interested and so they gained more trust in the company.

Implication and option for the future

It is of importance for companies to know the trend of technological arena so that implications and options of the future, to be stable and maintained at the peak. Option-to maintain a strong cash flow and not only stable but also potential customers. Implication-more employees and domination of the market networks. Option-to produce quality publication and good services to the customers. Implications-maintain the trust of customers to the company as well as promotion of revenues.