Amazon’s faults Amazon is killing America’s economy and is destroying retail companies everywhere. A lot of America’s finance situation is in the hands of Amazon. The website is developing a monopoly over almost every retail company. This creates a real threat to America's jobs. In fact, over the span of a two month period, over 60,000 retail jobs were lost.
Everyone has a favorite store that they prefer to shop at like Wal-Mart, Target, and BestBuy to name a few. However, when talking about favorite big name stores, Amazon can’t be left out of the equation. Amazon was founded in 1994 which put it as the youngest of retailers. However, with the boom of modern technology and internet, Amazon is now one of the biggest name when it comes to major retailers and is still continuing to grow bigger every year.
As the Financial manager it is my job and responsibility to ensure the financial health of the company that I am recommending my clients to invest in Amazon. During my research on Amazon, I discovered the following data that lead me to believe that it is a good company that should be considered for any investor’s portfolio. First, it is a company lead by the founder of the company, CEO Jeff Bezos founded Amazon in 1994. He not only knows the company, but it was his vision that created this magnificent company. Researchers say that a company that is led by its founder tends to outperform in the stock market.
Amazon has taken over and made itself a formidable opponent because it is easy and convenient to use according to most users. This came into play when Borderers book store had to compete with them. Borders failed to compete effectively online, went bankrupt, and had to close all of its stores. After this anyone who wanted to compete had to change their pricing strategy and to move into online territory. Most stores had this problem, so to compete, they started their own websites, but were not as prepared as Amazon.
They benchmark themselves and their teams against the best” (Amazon). As can be seen, Amazon does not elevate them beyond others, but instead creates an equal playing field for all
Best Buy is in the consumer electronics industry. Best Buy is a lean interpersonal service, similar to that of Garage. I received a Best Buy gift card from my grandmother and grandfather for Christmas. It took me a while to decide what I wanted to use the gift card for and I decided to buy the Amazon Echo Dot. Once I got home, I realized that I did not need this product.
Amazon has become the one of fastest increase company in the American. What did Amazon do in the past? For almost 22 years, Amazon' stock has risen 400 times,1400 dollars per stock right now. Amazon is no longer the online bookstore, the huge e-commerce resources, which can help the giant has more choices. It introduced a lot of new technology products to attract more and more users, Such as Kindle, prime, and echo.
Their focus on customer experience, “Customer Obsession” as they call it is shown by the way they consistently outperform other retailers. 4. Being the world’s leading online retailer, Amazon derives its strengths primarily from a three-pronged strategic thrust on cost leadership, differentiation and focus. This strategy has resulted
Amazon was one of the top online bookstores, which soon converted to the top online retailer across the world, and currently, even though it has a lot of competition, Amazon has a strong base of loyal customers who repeatedly buy from the online retailer. 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. Here is the SWOT analysis of Amazon. Amazon.com sells in 11 countries and ships internationally. It is one of the biggest retailers and is steadily growing every year.
Amazon’s competitive strategy is cost leadership. Amazon has achieved a lot on a great scale that it gets the best prices from its vendors so they can operate in very flexible and thin margins and sell their items easily at retail prices and make money. They also provide shipping products for a reasonable cheap price. They also have improved their warehouses by giving some space to other sellers who want to sell their items through Amazon. They differentiate and provide better quality than their competitors across the industry.
The strategic issues of Amazon indicates that its strategic position requires a shift from increasing market share and growth to achieving higher profitability if it wants to be competitive in the future. However their strategic capabilities and core competencies such as technological infrastructure, software development, inventory control and economies of scope has enabled high competitive advantage which presents the opportunities to undertake new investment options to overcome challenges to facilitate achieving greater profit margins and keeping ahead of
All three companies have spent a great deal of time and marketing effort to highlight their relative simplicity next to their competitors. Until recently, “it just works” was a phrase you heard very frequently in Apple presentations. The biggest initial selling point of Netflix was its simplicity — a great online entertainment service that saved you time. Amazon has invested a great deal of resources into making its sales, shipping and return processes as simple and reliable as possible. Because these companies offer a simpler, more reliable product or service than the competition, their customers are incredibly loyal.
Amazon is extremely market-oriented. For instance, Amazon was positioned by its leader as global customer-centric company where virtually anything that people are looking for can be successfully found and ordered. The most attractive sides of Amazon‘s business strategy are low prices, vast selection, and more importantly convenience for their customers. Therefore, with these strong qualities, the company continues to grow as a world-class web commerce giant.
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
They are the prominent general retail stores with a physical presence. Both of these retailers have emerged as e-commerce centric due to the early adoption of e-commerce strategies. However, even those retail chains proved to be of no use to generate a tight competition with Amazon. In the long run, the growth of the e-commerce versions of these supply chains can pose a threat to Amazon. (Wahba, Phil) Advantages for an Amazon Customer Amazon adds value for money for the customer.
