Case Study

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Summary

Amazon.com is without a doubt the world’s largest ecommerce outlet. It grew from an online bookstore into one of the largest e-commerce platforms in the world. People can find and anything they are looking to buy online in a more convenient way. Every person who has access to the internet must have come across an Amazon service.

With its headquarters in Seattle, the company was established in 1994 and is now the leader in online retail industry with $89 billion in revenue. With the passage of time, they expanded their product choices as well as built a number of distribution centers around the world i.e. Canada, UK, Germany, France, Italy, Spain, Japan, China, Mexico, India and the list goes on.

Amazon has always considered their customer’s requirements and strived to be the best and economical online retail in the market. Amazon was the first organization in the online shopping business that introduced customer feedback feature on their website.

Amazon SWOT Analysis

Amazon is world’s biggest online retailer. Amazon’s amazing growth has made the company achieve this landmark. The company earned US$140.235 billion in 2018 based purely on online sales. In 2016, it was predicted that Amazon would soon become world’s second largest retailer. There are a number of reasons behind Amazon’s successful business model. One of them is the low-cost structure. Comparatively lower rates result in a wide range of products which results in positive customer experience. CITATION Gud19 \l 1033 (Gudat, 2019)

Financial Analysis

The primary source of revenue of Amazon is the sale of its items and services. The website sells everything that comes to mind, from books to electronics, toys, food jewels etc. Amazon was one of the organizations that sell its merchandise on the internet. The income generated was around $42000 in 2014 and $65000 in 2016. Which clearly shows that the product income of the organization is growing by more than 40% annually. CITATION Fin17 \l 1033 (Financial Analysis, 2017)

Strategic Issues

With so many online shopping business being established every day, it is challenging to maintain a standing in the market. It requires constant reforms in the business model and strategies to keep up with changing trends. Other than that, keeping a balance between investments and profit for such a large organization is not a piece of cake. Some countries like France and Germany have made changes in regulations and taxation procedures for a number of tech companies, including Amazon.

Strategic Plan

Amazon’s business strategic plan is based on the belief that their customers are loyal to them right up until the second somebody offers them a better service. It’s designed in such an amazing manner that it has a huge number of independent revenue sources.

One of their biggest business strategies is that they make partnerships with other brands in the world. For Example Apple users can access books on their devices. As a result, it creates bigger consumer markets for Amazon. By pairing up with competing companies, Amazon has the capability to boost its brand and technologies which has helped it maintain control over its current market.

References

BIBLIOGRAPHY Financial Analysis. (2017, May 4). Retrieved from Financial analysis of Amazon.

Gudat. (2019, March 23). Amazon business strategy. Retrieved from Customer communications: https://www.customer.com/blog/retail-marketing/amazon-business-strategy/