Competitive Analysis Nokia, Amazon- Dan Saguy, Shai Zamir

Strategy Assignment 3 Competitive Analysis

Shai Zamir Dan Saguy

Introduction

, Inc. is an American multinational electronic commerce company in the online retail market. Its’ headquarters is in Seattle, Washington, United States. It is the world's largest online retailer, with different websites for large countries. Amazon was founded by Jeff Bezos in 1994 (the site went online in 1995). It started as an online bookstore, but soon diversified, selling DVDs, Music, software, games, electronics, apparel, furniture, food, and toys.

From

a

papermill

company

founded

almost

150

years

ago,

Nokia

is

a

multinational communications corporation that is headquartered in Finland and engaged in the market of manufacturing of mobile devices and in converging Internet and communications industries, with over 132,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of over €42 billion and operating profit of €2 billion as of 2010. Nokia produces a wide range of mobile devices and offers Internet services such

as applications, games, music, maps, media and messaging through its OVI platform. Its global device market share was 23% in the second quarter 2011.

This paper will offer a competitive analysis of the two companies using the model of sustaining superior performance.

Competitive advantage 1: Discount retailing Amazon has a reputation for offering the lowest prices in most of the products. This gives a great advantage over its’ competitors and creates value for the company. It's competitive strategy has been to outperform its' competitors by achieving lower operating costs and higher asset turns. 1. Imitation By buying in bulk quantities, and operating on a worldwide level Amazon is able to offer very low prices (size economies). A competitor in the market will have to reach a large scale of sales in order to compete. Amazon is doing an excellent job with analyzing the retail... [continues]

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