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Amazon.com - Research Paper Example

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Amazon.com Key Industry Success Factors In any industry, planning and strategy are paramount to success. Thus, in order to come up with good strategies, certain elements are critical. One of such elements is the critical success factor. The critical success factor helps an organization to meet the objectives of the project it is pursuing…
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Download file to see previous pages Success factors determine the success of both current and future operating activities within an organization. There are different success factors that define the success of an organization. The key industry success factors depend on the nature of the organization and they vary from one organization to another (Rockart 81-93). For instance, market share is one factor that determines the success if an organization. Depending on the market share, some companies will have a competitive advantage over the rest. For example, Amazon, the biggest online retail shop that also deals with other products such as electronic commerce is the world leader in selling various products online. With a market share of 29 percent, Amazon has a competitive advantage as compared to other competitors such as eBay, eMusic, Bol and many more. Another key industry success factor is customers. Organizations that have mastered the art of meeting the demands of the customers are successful and they understand market segments well (Daniel 111-121). Competition is also another industry success factor. Here, just like the competitors, Amazon strategizes on how to dominate the market by beating their competitors. For example, with retails shops all around the world, Amazon controls over 30 percent of the world’s consumer electronics and other online retail products due to its burly distributive and networking power. Lastly, the corporation itself is a key industry success factor. Amazon has huge resources and thereore; this makes it more competitive in the market. Additionally, the burly innovativeness experienced in Amazon is vital to its market dominance and has made it to have a competitive advantage over its rivals (Boynlon and Zmud 17-27). Company distinctive competences and competitive advantages Organizations, for example Amazon, which enjoys massive sustained profits within an industry, always have a competitive advantage over competitors. However, it is paramount to note that in order to have a prolonged competitive advantage, business strategy is vital. There are two forms of competitive advantage: cost advantage and differentiation advantage. The company’s distinctive competencies exhibit when the company is able to generate the same revenue as those of the rivals but at lower operating costs—cost advantage. On the other hand, a company that acquires more benefits than those of other rival companies experiences competitive distinctive competencies—differentiation advantage. Thus, competitive distinctive competencies are useful to the company since they help it to fashion better-quality value first for itself, and secondly, the buyers. It is competitive advantage based on cost and differentiation that defines the company’s success history and business success strategies. Through resources and capabilities, big firms such as Amazon have had a competitive advantage over their rivals in the consumer electronics market and sporting products, which has led to advanced value creation (Porter 3-24). In order to create a company’s distinctive competences, there are two things to consider: resources and capabilities. A company with superior resources and capabilities is already having an edge over its competitors. For example, with market share of 29 percent, Amazon already has a competitive adv ...Download file to see next pagesRead More
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