Case Analysis Amazon
STRENGTHS
Amazon is the first major internet dot com retailer. Because of this, it established the first mover advantage over its rivals. Amazon has had a unique breakthrough in its Research and Development team, making them a pioneer in the online retailing business. This advantage may stem to the fact that the first entrant can gain control of the resources that followers may not be able to match thus, giving them a strong position in the marketplace together with their leadership on setting the standards in that industry.
Another strength of Amazon is its customer oriented systems. They are personalizing their relationship with their customers by providing them with more in-depth information about the nature of the …show more content…
It is indicated that the Amazon turned its first profit on 2002, because relative to the first weakness that was mentioned, the capital requirement is very high and it took them a long time to earn their first income. The expensive capital is the reason why the profit came in after approximately seven years. Amazon offers a lot of free services such as free shipping, to gain customers’ loyalty. However, this leads to the probability of losing its margins and erode profits, therefore Amazon might not be able to improve on costs because of the strategy Bezos implemented.
Amazon’s workers are fragile. They are located in different parts of the world. There are some places which the strategy implemented is not applicable in their location. They are just limited to their current location in developing innovations for Amazon, although it may be implemented by other places it is still restricted to its position. …show more content…
They chose countries like the United Kingdom, Australia, New Zealand and Germany who use English as a dialect. After entering into different countries they found ways to gain a strong foothold in the local domestic market by finding known Internet book retailers and acquiring them. An example is their acquisition of Bookpages.com in UK and installed their proprietary IT then renamed it as Amazon.co.uk. The opportunity of expanding their services globally will increase the size of the market that they cater as well as the potential source of their sales and
STRENGTHS
Amazon is the first major internet dot com retailer. Because of this, it established the first mover advantage over its rivals. Amazon has had a unique breakthrough in its Research and Development team, making them a pioneer in the online retailing business. This advantage may stem to the fact that the first entrant can gain control of the resources that followers may not be able to match thus, giving them a strong position in the marketplace together with their leadership on setting the standards in that industry.
Another strength of Amazon is its customer oriented systems. They are personalizing their relationship with their customers by providing them with more in-depth information about the nature of the …show more content…
It is indicated that the Amazon turned its first profit on 2002, because relative to the first weakness that was mentioned, the capital requirement is very high and it took them a long time to earn their first income. The expensive capital is the reason why the profit came in after approximately seven years. Amazon offers a lot of free services such as free shipping, to gain customers’ loyalty. However, this leads to the probability of losing its margins and erode profits, therefore Amazon might not be able to improve on costs because of the strategy Bezos implemented.
Amazon’s workers are fragile. They are located in different parts of the world. There are some places which the strategy implemented is not applicable in their location. They are just limited to their current location in developing innovations for Amazon, although it may be implemented by other places it is still restricted to its position. …show more content…
They chose countries like the United Kingdom, Australia, New Zealand and Germany who use English as a dialect. After entering into different countries they found ways to gain a strong foothold in the local domestic market by finding known Internet book retailers and acquiring them. An example is their acquisition of Bookpages.com in UK and installed their proprietary IT then renamed it as Amazon.co.uk. The opportunity of expanding their services globally will increase the size of the market that they cater as well as the potential source of their sales and