Company description
Amazon is a multinational corporation that started up as an online bookstore. Within a short time, it expanded and diversified its business which made Amazon become the leader of Internet based market. Amazon has both Business-to-Business (B2B) and Business-to-Customers (B2C) business models. Focusing on B2C model of Amazon, which is the online retailing platform, it is undoubtedly that Amazon is one of the most successful companies in the market. Amazon has a giant online retailing platform selling various types of goods including e-books, software, personal-care products, industrial supplies and etc.
Five Forces Analysis
Threat of New Entrants
It is believed that the threat of new entrants is low in the online retailing market. With the help of technology progression, it is easy for investors to set up e-business by only a few clicks nowadays. However, setting up an e-business platform which is as big as Amazon.com is difficult. In order to be comparable to Amazon.com, investors have to cooperate with numerous suppliers, such as electronic devices, personal-care products and Music providers. To achieve it, a large amount of capital is required. Huge initial investment is needed to successfully …show more content…
From the consumer perspective, they could change their buying habit whenever they want if they find that the origin platforms could no longer satisfy their needs since there are many other similar choices. In Amazon’s case, Amazon.com provide a more convenient and user-friendly online shopping platforms comparing to its competitors. Moreover, due to the help of economics-of-scale, Amazon is able to offer products at a lower cost. Thanks to it, high bargaining power of buyers could be avoided and maintained at a middle level unless Amazon’s service quality decreased or the price of products increased which make customers feel that there is no advantage using Amazon.com comparing to other
Amazon is a multinational corporation that started up as an online bookstore. Within a short time, it expanded and diversified its business which made Amazon become the leader of Internet based market. Amazon has both Business-to-Business (B2B) and Business-to-Customers (B2C) business models. Focusing on B2C model of Amazon, which is the online retailing platform, it is undoubtedly that Amazon is one of the most successful companies in the market. Amazon has a giant online retailing platform selling various types of goods including e-books, software, personal-care products, industrial supplies and etc.
Five Forces Analysis
Threat of New Entrants
It is believed that the threat of new entrants is low in the online retailing market. With the help of technology progression, it is easy for investors to set up e-business by only a few clicks nowadays. However, setting up an e-business platform which is as big as Amazon.com is difficult. In order to be comparable to Amazon.com, investors have to cooperate with numerous suppliers, such as electronic devices, personal-care products and Music providers. To achieve it, a large amount of capital is required. Huge initial investment is needed to successfully …show more content…
From the consumer perspective, they could change their buying habit whenever they want if they find that the origin platforms could no longer satisfy their needs since there are many other similar choices. In Amazon’s case, Amazon.com provide a more convenient and user-friendly online shopping platforms comparing to its competitors. Moreover, due to the help of economics-of-scale, Amazon is able to offer products at a lower cost. Thanks to it, high bargaining power of buyers could be avoided and maintained at a middle level unless Amazon’s service quality decreased or the price of products increased which make customers feel that there is no advantage using Amazon.com comparing to other