Amazon Analysis Report

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  • Published : December 12, 2012
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Executive Summary
Amazon.com is a Fortune 500 company that has revolutionized the retail industry. In recent years, Amazon has faced increased competition in the highly competitive online retail space as competitors invested heavily in their online storefronts and infrastructure. Positioned in a highly fragmented industry, Amazon must find solutions that can sustain its long term profitability and maintain its market share. To that end, Amazon should grow the Amazon Prime membership base and expand on its media and mobile offerings. While Amazon faces many issues in a rapidly changing economic, political and global environment, this paper will focus on how Amazon can increase loyalty among its customers and continue to differentiate itself in the largest retail market, the United States. The U.S. market accounts for over 56% of Amazon’s total revenue and also serves as a home base for Amazon to test the responsiveness of its technological innovations. To further differentiate Amazon from its competitors, Amazon needs to build a sustainable, personalized relationship with its customers in order to drive future profit and growth by significantly expanding the Amazon Prime membership base. Amazon also needs to assign additional resources to further develop its mobile and media offerings to better connect with its consumers and to lower the barrier of transactions. Through gaining additional Prime members and having a more robust offering of mobile and media products, Amazon can not only maintain but grow its market share in an expanding market and increase its profitability through greater revenues.  

1. Company Overview

Amazon.com is a major player in the ecommerce industry. Amazon was founded to be the Earth’s most customer-centric company and strives to be a virtual one stop shop where customers can find and discover virtually anything they want to buy online. Amazon’s focus on the customer and the customer experience has led to a number of...
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