Amazon Social Forces Analysis

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Social forces have played a major role in the strategy that companies, such as Amazon and Mattel, have had to adopt to remain competitive or gain a competitive edge in their industry. According to Parnell (2014), social forces influence an industry’s behavior and potentially its performance. Social forces can embody anything that has the potential to cause change. Both companies have implemented many changes over the past decade in an attempt to accommodate the social forces that they are up against.
Hailed early on as “the world’s largest bookstore”, Amazon has grown exponentially and is now considered “one of the most successful web-based retailers” (Parnell, 2014). Credit for the tremendous growth goes to Jeff Bezos who is a master of disruptive innovation. Parnell (2014) states “a good business model begins with an insight into human motivations and ends in a rich stream of profits”. Based on this statement, Jeff Bezos has established himself a good business model. He has the ability to foresee what it will take to disrupt an entire industry; and he successfully does just that. According to Rao (2011), “Bezos has the ability to figure out which game to play; against which company”. He further explains that Amazon has the
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They look primarily for companies that are in competition with them or companies that have strengths that align with their own strengths; who if owned or working together would dominate a market. When Zappos was recognized as a serious e-commerce competitor, Amazon made swift action to acquire the company (Amazon Acquires Zappos, n.d.). Their partnership with Toysrus.com was a direct result of the complementary strengths in which each company specializes in (Masterson, 2000). Toys R Us is recognized as one the leading names in toys and Amazon specialized in distribution, the partnership will give customers the best of both worlds (Masterson,

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