Amazon Case Analysis
This is probably because usually stocks of a company become attractive when it achieves above its speculations. In Amazon’s case, this year, it achieved 470 Million dollars less than its expected 25.59 billion Revenues and 15 cents less in its EPS than what was expected by analysts.
Another strategy is innovation. Amazon has remained innovative by focusing on its customers more than its competition. Jess Bezos, CEO of the company, uses core competence in technology to study information about its customers to understand individual users’ needs and then target company’s goods and services to satisfy those needs. That’s how Amazon can offer shopping convenience, ease of purchase, speed, decision-enabling information, wide selection, discounting pricing, and security for their users. In addition, Amazon follows Internet tax avoidance tax. They refuse to collect sales tax in states where it has no physical presence. It lets the company to sell goods at lower prices than local brick-and-mortar competitors such as Barnes & Nobles, which artificially turns the market in Amazon's …show more content…
If Japanese users are looking for a book on the American site, there is no indication that he or she can find the same book from Amazon.co.jp. It will be advisable to add a linking strategy for users. Linking the websites together for a larger database for all users around the world might open a new market. This might mean an increase in shipping costs or a more complex logistics but can be compensated by a minor increase in prices in these special cases. For instance, Amazon can include links to its different international database to allow users in France to access the American or Spanish store and buy from it. An important recommendation is to maintain their global competitive advantage and to enhance their core value. Amazon is best known for its prices and its simplicity. Achieving higher levels of economies of scale with regards to sales and transportation costs will allow it to take an even more dominant place in the ecommerce market and will make it absolutely impossible to compete with. With regards to international shipping and the proposed international strategy above, it is recommended that Amazon stores its goods where the least taxes apply within Europe, Unites States, South America, and