Amazon Case Syudy
AMAZON.COM
Q. 1:
A. Analyze Amazon.com using the competitive forces and value chain models.
Five competitive forces shape fate of firm
According to Porter's Five Forces Model, in my opinion, competition has increased overall as a result of the internet and e-Commerce. The internet and IT has made it possible to both focus on the top and bottom lines and market share is expanded and costs are cut. Many products and services exist just online, major companies have gone online to successfully augment the brick and mortar corporations, and the playing field is all the way to edges of cyberspace, wherever that is
Traditional competitors
Amazon has strong competitors like online retailing stores and a large number of physical stores(Books, Grocery,Electronics,Video games etc).
Examples : Barnes & Noble, Inc., Wal-Mart.com USA, LLC (privately held), Catalog & Mail Order Houses
High – As search engines are becoming the first choice for consumers when shopping on-line e.g. Google. This increases the opportunities for other retailers.
High – There is an increasing amount of dotcom companies due to the little capital needed to start up. Smaller niche affiliate online stores when combined create even more competition
New market entrants
Threat of new entrants is high when it is easy for new competition to enter the market. As the technology is increasing and facilitating the businesses more and more so it is becoming easier for any business to start online retailing operations.
Low – For online established retailers a strong brand image generates consumer trust.
Low - Economies of scale – Retailers that have refined technology and processes and are able to buy in bulk can offer the lowest prices. This is a major competitive advantage as there is much choice online.
Low - Strong experience in the online retail industry gives e-retailers advantages in terms of cost and customer loyalty.
High - Capital requirement entry is a low for online businesses’ as
Q. 1:
A. Analyze Amazon.com using the competitive forces and value chain models.
Five competitive forces shape fate of firm
According to Porter's Five Forces Model, in my opinion, competition has increased overall as a result of the internet and e-Commerce. The internet and IT has made it possible to both focus on the top and bottom lines and market share is expanded and costs are cut. Many products and services exist just online, major companies have gone online to successfully augment the brick and mortar corporations, and the playing field is all the way to edges of cyberspace, wherever that is
Traditional competitors
Amazon has strong competitors like online retailing stores and a large number of physical stores(Books, Grocery,Electronics,Video games etc).
Examples : Barnes & Noble, Inc., Wal-Mart.com USA, LLC (privately held), Catalog & Mail Order Houses
High – As search engines are becoming the first choice for consumers when shopping on-line e.g. Google. This increases the opportunities for other retailers.
High – There is an increasing amount of dotcom companies due to the little capital needed to start up. Smaller niche affiliate online stores when combined create even more competition
New market entrants
Threat of new entrants is high when it is easy for new competition to enter the market. As the technology is increasing and facilitating the businesses more and more so it is becoming easier for any business to start online retailing operations.
Low – For online established retailers a strong brand image generates consumer trust.
Low - Economies of scale – Retailers that have refined technology and processes and are able to buy in bulk can offer the lowest prices. This is a major competitive advantage as there is much choice online.
Low - Strong experience in the online retail industry gives e-retailers advantages in terms of cost and customer loyalty.
High - Capital requirement entry is a low for online businesses’ as