Question

1. , the PESTEL and the FIVE FORCES models to analyze the situation and structuring the  Amazon’s rise is forcing laundry detergents to shrink.

Answer 1

# PESTEL and the FIVE FORCES Models-PESTEL is an analytical tool that identifies how various factors may affect an Organization and its competitive standing. it stands for Political,Economic,Sociocultural, Technological,Legal and Environmental. this method looks at the factors in a Nation or Marketplace and examine how those factors affect the Consumer.

# Amazon's rise is forcing Laundry detergents to shrink-the Downsized detergents are a sign of Amazon's growing Influence. Companies that have designed products for decades to stand out on store selves are now being pressured by online retailers to make their packaging lighter to cut down on Shipping costs.

Amazon may drop products from its website that cost too much to ship and aren't making it enough money. Retailers decide How much to charge Shoppers, but both Tide and seventh Genration said they Expect the lighter detergents to cost the same as traditional ones.

# Analysis using Porter's Five forces model : they are all external, so they have little to do with the internal structure of a corporation.

1. Industry Competition-A higher degree of competition means the power of competing companies decreases. when competition is low, Companies can do whatever they need to in order to increase their Profits. here in this situation Amazon is creating competition by cutting down the shipping costs, by reducing the Packaging weight.

2. New Players in the Industry-New( and more) entrants into the market means a Company's power also decreases. Most companies prefer to operate in a Market or Industry where there are Fewer Players. Amazon has Several competitors, thats why it was required to cut down the costs to face the competition.

3. Supplier(Seller) Power-this Factor Examines How suppliers can use their Power to increase the Price of Goods and services. the fewer suppliers there are in market, means they have more Power. in this case when Amazon create the New detergent Packaging, with less weight( with Tide) the competitors were forced to cope up.

4. Buyer(Customer) Power- When Consumers have more Bargaining Power, they may be able to affect the Price of Goods and services, Driving them down. Amazon's huge customer base is the driving force in this situation.

5. The Threat of substitutes- Product and services by a rival, that can easily be substituted are also a threat to a Business Profitability.

Amazon's Management, by doing this, created ways to take better advantage of this situation of strength and avoid making mistakes that would Provide someone else a competitive edge.