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Amazon.com - Essay Example

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Amazon.com is one of the most well-known internet-based booksellers. The main strength and unique image of the company can be explained by entrepreneurial nature of business and innovative ideas of its Jeff Bezos. Today, Amazon.com is a leading online bookseller which has 30 million customers around the world…
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Download file to see previous pages Amazon advertises extensively on the internet to help raise awareness of their brand. Also, Amazon maintains high-speed growth introducing new products and services available online. Innovations and adaptation policies help to appeal to a particular target audience in diverse markets. The main weakness of Amazon is a negative image of online banking and financial transaction. Many customers do not buy products online afraid of fraudulent actions of companies. Undeveloped banking sector in less developed countries prevent the company from rapid international growth. The opportunities included: high potential to growth based on the technological change and increasing number of internet users. The choice of communications mix should be the most cost-effective solution for achieving the organization's communication objectives. Call centers and the Internet give online booksellers great opportunities to promote its services. Competition and possible legal changes is the major threat forAmazon (Amazon Home Page 2009).
In his book "Competitive Advantage" Porter identifies five forces that drive competition within an industry (Johnson and Scholes 54). The threat of entry by new competitors is possible but they will create a real threat for Amazon. The intensity of rivalry among existing competitors has a great impact on Amazon facing with strong competition (Barnes & Noble and other small online companies). Thus, Amazon has positioned itself as a superstore. Pressure from substitute products will not have a great impact on Amazon's activity. Today, Amazon proposes a wide range of e-texts and CD-ROMs which can be regarded as substitute products. The bargaining power of buyers is crucial for Amazon. The aim of customers is to pay the lowest possible price to obtain books or other products that they require. The advantage of Amazon is that it purchase in such large quantities that its suppliers are dependent on the customers' business. The bargaining power of suppliers does not have a great impact on Amazon because most firms are highly differentiated and need an effective distribution channels for their products (Amazon Home Page 2009).
For Amazon, the most successful of four growth stages was the Growth stage. This success can explained by a strong web culture and environment created by its team. In order to be effective Amazon is responsive to external environmental influences. Amazon operates within a dynamic environment and it requires a structure and culture that are sensitive and readily adaptable to change (Johnson and Scholes 55). Amazon's organizational climate influences the level of morale and attitudes which members of the organization bring to bear on their work performance and personal relationships. Also, strong web culture attracts millions of buyers to this store. Web culture is based on non-price competition and strong brand image (Amazon Home Page 2009).
Amazon.com is a leading internet-based company operating on a global scale. Amazon.com becomes the first mover in the e-retailing market proposing a wide product range to diverse customer targets. E-business allows the company to connect customer service and good levels, increases customer satisfaction and decreases retention artistries. The main strategy is a virtual bookshop which helps the company to promote and sell its products to customers. Similar to traditional marketing, a virtual bookshop ...Download file to see next pagesRead More
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