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Essay On Amazon's Strategic Strategy

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Market Development is a crucial aspect in Amazon’s competitive strategy. The use of its existing products for capitalizing on new market areas through its core competencies such as faster delivery time, new channels and distribution methods have facilitated greater market expansion for Amazon. Amazon Fresh offers same-day delivery service on grocery food items and toiletries while Amazon Prime provides a free two-day delivery service on purchases and access to a library of streaming movies and music where customers pay an annual subscription fee of $99 US/£79 Britain for the service. Amazon Prime members also have access to free deliveries on Sundays as well. Amazon recently partnered with Britain Fashion retailer AllSaints to offer Prime members free next-day shipping, where Amazon charges the company for every time their customer clicks through Amazon.com resulting in additional revenue. Amazon’s critical success factor – efficient supply chain and logistics has allowed Amazon to gain competitive advantage as fast and free delivery has lead to an increase in sales thereby incurring higher market share. This is due to the high preference of convenience by customers and their high …show more content…

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

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Based on this estimate, CIRP estimates that in the US, Amazon prime has 85 million members. Amazon prime membership encourages much more repeated shopping, likely because the free shipping benefit knocks down a key partition to buying online often and makes Amazon their first stop for online purchases. Amazon prime

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Walmart, Amazon, and EBay 1. Analyse each of these companies using the value chain and competitive forces models. The value chain model of Amazon in itself is internally and operationally the best that adds value and maintains competitive advantage. The primary activities include Inbound logistics for example quality control, receiving, raw materials, control and supply schedules; Operations for example packaging , maintenance, quality control; Outbound Logistics for example

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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.

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The prime video membership price stands at $8.99/month, a dollar less than the standard plan of Netflix. It provides 30-day free subscription to new users. Along with this, at an additional price of $2/month, a consumer can get full access to amazon prime membership which includes several unique benefits like free two-day shipping, music streaming, e-books and even one-day delivery of purchased products on Amazon in selected areas. Prime video also provides the option of downloading latest movies and TV shows for offline

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Analyze Amazon.com using the competitive forces and value chain models. How has it responded to pressures from its competitive environment? How does it provide value to its customers? a) Competitive forces analysis i) Entry of competitors It is easy for competitors to enter the market by establishing an e-shop and Amazon laid the groundwork for competitors (Flat World Business, n.d).

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Investors in Wal-Mart were aware of the obstacles that the giant retailer would face due to the changing consumer preferences and behaviors. However, the financial reports showcased that its online strategy was successful. At the end of the second quarter in 2017, Wal-Mart reported revenue of $123.4 billion, which was an increment of about 2.1% over the previous year quarter. There was also an increase in comparable sales by 1.8% year over year. Wal-Mart has significantly focused on structuring its online sales, while using its already well-established brick and mortar stores and excellent supply chain and logistics to its big advantage.

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5 – Main risks going forward for Amazon.com are to loose its competitive advantage because of opportunities that Internet offered to its competitor : low prices, deliver, costumer’s service, etc. Moreover, if the business develops, it may encounter logistical problems and limits : geographical and logistical constraints (energy, delivery and connection and some contries) and legislative constraints (censorship, taxes and state agreement : Corea, Sri Lanka, Indonesia, etc). Founded in 1994, Amazon started as an online bookstore and quickly became popular as it received high marks on several Internet rankings. Today, Amazon.com, Inc. is the world's largest online retailing company headquartered in Seattle, WA

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The delivery system of Amazon is a class apart. They have their own delivery system which is fast and reliable. Amazon has made another crucial and innovative step in product delivery by announcing its new drone delivery system called Amazon Prime Air. The system projects to use robotic drones which fly to your doorstep to deliver products. The company is awaiting a nod from the legal regulations and other authorities to start with the new delivery

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Amazon has achieved many milestones from starting in the founder’s garage in 1994 to the growth in revenue to US$147.8 million in 1997 and then to the revenue growth of US$177.866 billion in 2017 (Amazon, 2018a, Amazon, 2018b and Jurevicius, 2018). These milestones were achieved through tenacious focused strategies of meeting their customers’ needs and wants. These strategies have maintained and expanded their customer base locally and internationally and have increased its market shares and profit over the last two decades. In addition, projection for the company’s growth and expansion for the next three to five years looks positive as it predicted to grow at the same rate with its expansion internationally and continued focused in satisfying consumers’ wants (Amazon, 2018a). Although, some factors such as governmental policies, legal issues and natural disasters could pose a threat to Amazon’s growth plans, the management team led by the founder and Chief Executive Officer (CEO) are working on mitigating the risk (Amazon, 2018a).

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Amazon is a domination force that all other retailers have to compete with and they will only get better. When they began to dominate the market, some retailers followed suit and increase their online presence like Walmart and EBay. They even began to lower their prices to compete with Amazon. This resulted in several other retailers, who did not

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Amazon is the pioneer of e-commerce. Walmart, its soon-to-be rival, has built its success in traditional brick-and-mortar. Amazon has decimated other traditional retailers, yet Walmart has found a way to thrive. The two companies are preparing to face off on Amazon’s turf. Walmart just ended a subscription program and now offers free two-day shipping on any purchase above $35.

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Today, many people prefer to order products from Amazon instead of going to stores or malls. c. DESCRIPTION OF MY SUBJECT (AMAZON.COM): Amazon (Amazon.com) is the world’s largest online retailer and a prominent cloud services provider. The company was initially a book seller, then later it expanded to sell a wide variety of consumer goods and digital media as well as its own electronic devices, such as the Kindle e-book reader, Kindle Fire tablet and Fire TV, a streaming media adapter (Rouse, 2018).

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Amazon Prime is a membership that offers many benefits to an online shopper by providing free two day shipping as well as exclusive access to multiple genres of music and movies (Perez). This membership allows the public to listen to many different types of music and watch a large range of movies for only $99 a year. Being a large shipping store, Amazon has to stay ahead of the competition by creating programs that increase the

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The company also promote aggressiveness among employees and because of that, the employees consider each other as competition and not as a team. Since the social context is becoming really important, Amazon is forced to change their corporate culture. Their culture had brought a lot of success to the company, but it is now however time to change towards a positive environment and a positive culture that

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