Amazon Inc. has its future well focuses through quantified strategic objectives. To make it more competitive in future, plans for acquisitions have been laid down. Amazon Inc. hopes to up its game and venture into chains like Staples…
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To sustain this new venture, Amazon Inc. has a good start off, as its traffic is attractive to buyers and sellers into Amazon market place. Firms likely to be acquired in this endeavor include Diapers.com, Zappos and Soap.com.
Amazon intends to buy Quaidis, the parent company to Soap.co and Diapers.com for $540 million. The capital that was collected to fund this acquisition amounts to $78 million. In another strategy for up its competition with CPG companies, Amazon Inc. intends to acquire Zappos at a projected price of $1.1 billion. To compete with Google and Apple, Amazon Inc. intends to upgrade its Kindle to support mobile phone applications and functions. This will enable the incorporation expand from just providing physical goods to digital goods. The low margins strategy has been employed by Amazon regardless it is downcast by other companies. Amazon is offering its products and services at low prices as a strategy to attract more customers and increase its market share. This is a strategy aimed at increasing value to customers rather than increasing its value through high prices and high profits. Increased market share will see Amazon reduce its costs through economies of scale, as the costs will be spread through many customers. For instance in 2011, Amazon had operating expenses of 91% expressed as a fraction of revenues. This demonstrated its big market share compared to Walmart. Amazon had revenue streams of up to $48 billion. Most of this is attributed to online retail store where it has managed to attract millions of shoppers and sellers to its website. This has led to a cost advantage for Amazon in relation to Walmart and Costcos. Amazon has grown from just a book retailer to be the largest online retail shopping for physical and digital goods and services. This has not stopped the company from further growth and development. The company is seeking to contract Google, which will see it use the Android technology. Although Amazon and Google are market rivals, Amzon seeks to cross the gap between the two and build its new devices on the Android operating system. 8. Implementation strategy: From a range of reasonable options (build or “go it alone” strategy, partner via a joint venture or less formal business alliance, license, minority investment, and acquisition), indicate which option would enable the acquiring firm to best implement its chosen business strategy. Because of the nature of the course, you must indicate that an implementation strategy involving an acquisition is preferred to the other options and why. An acquisition is the best strategy for implementation. The acquiring firm’s stands an advantage of running a business that is well established compared to building up a new business. With an established business, the acquiring firm can use the existing financial records to forecast future performance to determine if the new firm to be acquired is profitable. This is not the case with a new firm being set up. Setting up a new firm may require more capital and time. The business’ future performance may not be correctly forecasted because there are many unseen occurrences, as the business has no experience. Partnerships on the other had result in legal disputes, as the partners are likely to disagree on decisions and business issues. Acquisition remains the
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Amazon.com’s Business Model Name University Instructor Course Date Abstract Amazon.com is regarded as one of the leading online book sellers in the entire globe. Since its inception in 1944, the company has continued to diversify its market space by launching a new website in Germany, France and Italy that provide varied services to the consumers.
After he had made the journey across the country from New York to Seattle, he wrote the Amazon business plan which led to him setting up the original company in his garage. The history of Amazon.com dates back to the founder Jeff Bezos who had a vision to benefit his community (Boom, 2008).
For example, big companies like Microsoft and Google have entered the online business market in recent times and they are raising stiff challenges to Amazon.com. They have already started diversification of their business and trying to penetrate into the business portfolios of Google and Microsoft.
In other words, these are activities that ensure success of an organization. This neither means that without these elements, a manager or an organization is nor assured of success. Critical success factors provide an avenue of managerial and enterprise performance, and, therefore, any organization that hopes to achieve its mission must give these elements special and continual attention.
This paper presents an analysis of the Amazon.com’s business situations in which the company operates, using the customer value funnel (CVF) approach. This approach is based on the value delivery through the micro/macro-environment, Amazon’s strategic analysis, the company’s value proposition and its customer value insights.
One of the famous techniques now a day for handling business is e-commerce. Electronic commerce is handling of different business transactions on Internet called World Wide Web (Web). General business transactions like selling, buying, & data transferring made on Internet provides profitable Revenue to business.
The product being launched is a handheld retinal scanning device that uses laser technology to instantly recognize the patient, offering hospitals, emergency crews and other clinical staff members an instantaneous patient profile and history. This device is
Kindle with the help of which the consumers can have multiple electronic books at their disposal with just one click (Amazon.com Profile - History of Amazon.com and information about Amazon.com).
Amazon.com was founded by Jeff Bezos who initially started the company in his