Analysis of the Amazon.com Case Study in terms of the Michael Porter’s Five Competitive Forces Model
Threat of Substitutes
The threat of substitutes is high. Amazon.com is in the Internet Services and Retailing Industry. With the exception of its patented technology (such as 1-Click Ordering), there are quite a lot of alternatives to Amazon’s products and services. It is important to note that most companies, in addition to brick and mortar stores, have an online store. Both the physical store and online store act as a substitute for Amazon.com because brick and mortar companies do not compete in the same industry as Amazon.com and its direct competitors.
Amazon.com’s products can be purchased all over the internet; they are just spread out among different web sites. Some substitutes for Amazon.com could be Walmart.com, Kohls.com, Lowes.com and Bestbuy.com.
Books can be purchased at brick-and-mortar bookstores such as Borders (although Amazon runs their web site, its stores still constitutes as a substitute), Barnes and Noble Books, Books-A-million, and Half Price Books. Books are additionally sold at newsstands, drugstores, and discount stores like Walmart and Kmart. Books can also be borrowed for free at a community or university library. The music selection Amazon.com offers can be purchased at music and entertainment retailers like Trans World Entertainment or Virgin Megastores as well as consumer electronics retailers like Best Buy. Music can also be purchased at discount retailers; Walmart’s music department has a wide variety of products with competitive prices. People could also listen to and/or record local radio stations music. DVDs and videos can be bought at large consumer electronic/media retailers like For Your Entertainment (f.y.e.) or Best Buy. DVDs and videos are sold at discount retailers and there also is the option that videos and DVDs could be borrowed from the community library. Electronics (cameras, camcorders, cell phones, computers, and software) can be purchased at brick and mortar stores like Best Buy, Circuit City, Dell or
The threat of substitutes is high. Amazon.com is in the Internet Services and Retailing Industry. With the exception of its patented technology (such as 1-Click Ordering), there are quite a lot of alternatives to Amazon’s products and services. It is important to note that most companies, in addition to brick and mortar stores, have an online store. Both the physical store and online store act as a substitute for Amazon.com because brick and mortar companies do not compete in the same industry as Amazon.com and its direct competitors.
Amazon.com’s products can be purchased all over the internet; they are just spread out among different web sites. Some substitutes for Amazon.com could be Walmart.com, Kohls.com, Lowes.com and Bestbuy.com.
Books can be purchased at brick-and-mortar bookstores such as Borders (although Amazon runs their web site, its stores still constitutes as a substitute), Barnes and Noble Books, Books-A-million, and Half Price Books. Books are additionally sold at newsstands, drugstores, and discount stores like Walmart and Kmart. Books can also be borrowed for free at a community or university library. The music selection Amazon.com offers can be purchased at music and entertainment retailers like Trans World Entertainment or Virgin Megastores as well as consumer electronics retailers like Best Buy. Music can also be purchased at discount retailers; Walmart’s music department has a wide variety of products with competitive prices. People could also listen to and/or record local radio stations music. DVDs and videos can be bought at large consumer electronic/media retailers like For Your Entertainment (f.y.e.) or Best Buy. DVDs and videos are sold at discount retailers and there also is the option that videos and DVDs could be borrowed from the community library. Electronics (cameras, camcorders, cell phones, computers, and software) can be purchased at brick and mortar stores like Best Buy, Circuit City, Dell or