Competitors
Amazon's main competitors are the book retailer, Barnes and Nobles and third parties retailing non-book related good. BN and EBay are engaged in the similar industry as Amazon, which is online business and catalogue retailing of single and diversified product lines. In terms of market capitalization, Amazon has the highest at $59.57 billion and followed by EBay and BN at $30.59 billion and $1.21 billion respectively. This indicates that Amazon has greater stability and low risk compared to the competitors. Amazon had stiff competition from Barnes and Noble between 1997 and 1999. An as a result Amazon entered into a promotional and strategic relationship with internet players like Yahoo.com, America Online, Excite and Dell Computers
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In order to capture the competitiveness of such firms within the online retail industry, amazon strategic group analysis places emphasis on product line breadth and geographic markets. EBay.com remains a top player within the group with over 29 geographic locations and 22 product categories. Amazon.com boasts of 7 geographic locations and 11 product groups. Amazon quickly intensifies their expansion in product line and market presence, in its competition with the leader eBay.com. In compare with the competitors, Amazon's Return on Equity was high in 2015 at 135% but drastically dropped throughout the years to 40% and 20% in 2013 and 2014 respectively. The main reason for the decrease was due to the yearly increase in the business's equity. As at 2008, Amazon's ROE is equivalent to the competitors and is expected to be in line with the competitors in the future. Meanwhile the ROA showed that Amazon is generating more income from its assets compared to its competitors. In comparison on the ROE and Return on Assets, Amazon has the highest growth among its competitors as it has a smaller capital base than EBay and a higher profit level than BN. The high ROE is indicates that Amazon is continuing to …show more content…
However, Amazon.com has a wider product collection. Wal-Mart.com Similar price and wider product collection like pharmaceutical, contact lenses and photo printing services. Ebay.com wider product selection and geographic scope and competitors like Wal-Mart and Tesco pose more competitive threats since they have physical stores meanwhile eBay.com has a wider geographical scope and product portfolio. The competitive rivalry amongst the e-retailing industry is intense from some of the largest to the smallest companies. Due to the abundant businesses it makes competition intense. Amazon.com competes directly with big firms such as Barnes and Noble and EBay and some smaller firms. The threat of new entrants that are able to compete with Amazon.com is low. The strong brand image of Amazon should be an advantage in any price