Filed under: amazon.com, strategy, SWOT, value chain — Song @ 5:05 pm
Continued from (2).
As a online retailer, Amazon’s resources are primarily intangible: Customers recognize its brand and website as synonym of online shopping. As a result of perennial evolution, the friendly web interface guaranteed unique shopping experiences. Unparalleled quantity and quality of user reviews attract potential customer, and provides rich information on merchandise popularities as well as user preferences. A mature and sophisticated logistics and operation systems minimize the storage and shipping costs. By looking into amazon’s value chain, the following activities are identified as value-creating: In primary activities, the marketing is the most value-creating activities; also the operations and logistics are value-adding. In support activities, the technology development is undoubtedly the most value-adding. In addition, a proper firm structure is also value-adding. Therefore, Amazon’s core competitive advantages lies in two aspects: Low prices: secured by its relatively low costs because its operational model saves significantly on human resources and logistics costs; Unique customer experience: originated from its website and database design and the knowledge of customer preference.
Long established customer loyalty.
Well-developed software helps improving customer experience. Knowledge of customers and merchandise from historical purchase information and feedback. Sophisticated logistics system reduce the cost.
Online shopping lacks sensible experience of the product.
Ordering online incurs unavoidable delivery delay.
Company is unfamiliar with its non-traditional territories.
Commodities are more and more diversified.
Customers need more information before purchase.
Information technology based on...