Question

In your own words, 700 words, write an analysis of Amazon's strategy, and how they implement/executing the strategies, and the management decisions

Answer 1

Amazon’s business strategy and this strategy has unbroken leading the complete to success. Competition has unbroken exasperating within the E-commerce business and Amazon has preserved its client focus so as to stay competitive. However, the complete has continued to grow its investment into innovation and analysis to produce the shoppers a far better overall expertise. despite its low operative margins, it continues to stay investors’ favorite. Memberships have grownup quicker since the launch of prime and Prime video continues to drive client attraction and retention. The complete is additionally growing through acquisitions and incessantly investment in technology to alter the face of the retail game. However, challenges too abound and except the rising competition and restrictive pressures, there area unit alternative challenges within the manner of Amazon’s growth.

Amazon strategy-

1- talks power of suppliers:
The talks power of Amazon suppliers is low as is that the case with most huge brands. this is often as a result of whereas these suppliers area unit scattered and little in size, Amazon holds higher talks power due to its giant size and complete image. The suppliers being terribly smaller in size as compared to Amazon area unit unable to dictate their terms and it's principally the e-commerce complete that has the superiority.

2- talks power of customers:
The talks power of Amazon customers is moderately high. notwithstanding a private client doesn't create considerably giant purchases attracting new ones additionally as holding individual customers is a vital focus at Amazon. except selling and client service, the complete additionally spends loads on client engagement and retention. these items area unit of predominant importance during this era of cutthroat competition. Moreover, every client has many choices before him as well as physical retail and could be a well au fait client. These area unit the foremost vital factors that have junction rectifier to talks power within the hands of the shoppers within the twenty first century.

3- Threat from substitute products:
The threat from substitute merchandise or brands chiefly comes from retail and e-retail brands like walmart, Ebay etc just in case of Amazon. There area unit many giant retail brands in USA additionally as some commerce brands like Ebay. except that in alternative components of the globe too retail and retail brands like Flipkart and Alibaba area unit competitor with Amazon. Amazon incorporates a terribly giant vary of distinctive merchandise seeing on its web site whose variety ranges somewhere in many millions and that could be a essential leverage for the complete. However, an oversized vary of those merchandise also are offered with alternative brands like Walmart, Costco, Ebay, Flipkart, Alibaba etc. the threat from the substitute completes is moderate owing to Amazon’s brand image, giant product vary and international presence.

4- Intensity of competitive rivalry:
The intensity of competitive competition within the commerce business is growing with the entry of retail brands like Walmart coming into commerce. except it, Amazon has many alternative notable competitors like Ebay, Alibaba cluster, Flipkart etc. of these e-commerce websites area unit adding to the intensity of competitive competition within the business. Walmart and Costco have additionally entered e-retail that has junction rectifier to extend within the level of competitive competition among the present brands.