Amzon.com, Inc. operates as an online retailer in North American an internationally and now it is the largest internet-based retailer over the world. The the company serves consumers through its retail web sites and focuses on selection, price, and convenience.it also offers programs that enable sellers to sell their products on its web sites. The company serves developer customers through their web services, which provides access to technology infrastructure that developers can use to enable virtually various type of business. There is a high entry barrier for e-retailing industry because of high capital requirements. Amazon has invested heavily to set up their storage and development. Amazon also has strong networking to access to distribution and have economies of scale they could sell products for less than their competitors. It also has high fixed cost to exit barrier. The supplier power is relatively low because the relative industry …show more content…
On the one hand, Amazon could avoid many new competitors by high entry barrier. On the other hand, it has great cost advantage and differentiation to be better than its competitors. Amazon provides extensive product and service lines at low prices as possible. Amazon always welcomes addition of new products to its site and the wide range of products availability has created a very strong customer base. Additionally, Amazon have really strong IT system to support operations. However, Amazon needs to face many competitors in different industries if it wants to expand its scale and entry new industry. Amazon may have limited or no experience in its newer market segments, it may present new and difficult technology challenges. Profit in its newer activities may be lower than in their older activities and may not be successful enough in these newer activities. Amazon is exposed to significant inventory risks that may adversely affect its operating results as a result of seasonality as