Preview

Discuss the Importance of Changes in the External Environment to an Organization Like Walmart

Better Essays
Open Document
Open Document
2479 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Discuss the Importance of Changes in the External Environment to an Organization Like Walmart
2. How does Amazon.com compete on the web?

Amazon.com can not be the great on-line bookstore if it lacks of good founders as well as its core competence. The founder, Bezos , is a creative and dynamic man who can keep pace with the dynamic world. The company also pays much attention to its customers, suppliers and base on technology. It has an attempt to manage and build itself to be better, easier, faster and cheaper in order to compete in the world so this became its core value to compete on the web. These are categorized in four propositions.

1. Convenience:
Because Amazon.com is an on-line bookstore, anyone interesting or customers who live anywhere can contact with the company by only done through its webpage or email and the firm is open for business twenty-four hours a day. Everyone can search, buy and pay for the product via the internet, and then books are delivered to you in shortly, like a one-stop service.
One of the company success is it understands consumer buying behavior.
In the technology world, customer behavior can change all the time. They want more comfort and convenience and Amazon can provide this for them. When the consumer wants to purchase product, they can search for information through its website or by email. Then when they decide to purchase, they can buy by search for a specific book, topic or author or they can browse their way through the book catalog feature. Then they can browse, fill up a virtual sopping basket and entering their credit card information or by placing their order on line and then phoning in their credit card information, customers' order are processed immediately and book in stock are packed and mailed the same day. The sale process does not take much time and customers instead of going outside to buy books, they can only buy via internet elsewhere.

2. Price and discount:
All books are discounted. Bestsellers books are sold at 30 percent discount and other books at a 10 percent discount.

You May Also Find These Documents Helpful

  • Better Essays

    Amazon.com is a publicly traded worldwide online retail company founded by Jeff Bezos on July 5, 1995 in Seattle, Washington. The company originally began as an online bookstore as Bezos felt there was a high demand for literature, and books had a low price point and a huge selection of titles available in print. Technological innovation drives the growth of Amazon.com to offer customers more types of products, more conveniently and at lower prices. Since 1995, Amazon has significantly expanded its product selection, international retail websites, and worldwide network of fulfillment and customer service centers. Today, Amazon retail websites offer everything from toys and video games to MP3 downloads and collectible items (amazon.com, 2014). Amazons business model is fairly simple; to sell various products and goods online at an affordable cost to consumers. Amazon has managed to not only achieve this business model but they have also managed to consistently expand and become the largest online retailer to date. To keep up with global demand, Amazon had to expand its products and services offered while continuing to forecast consumer’s needs. “In 2000, Amazon.com began to offer its best-of-breed e-commerce platform to other retailers and to individual sellers. Today, hundreds of thousands of world-class retail brands and individual sellers increase their sales and reach new customers by leveraging the power of the Amazon.com e-commerce platform. Partners work with Amazon Services to power their e-commerce offerings from end-to-end, including technology services, merchandising, customer service, and order fulfillment. Other branded merchants leverage Amazon.com as an incremental sales channel for their new merchandise. Over 2 million third-party sellers participate in Amazon where they offer new, used, and…

    • 891 Words
    • 3 Pages
    Better Essays
  • Satisfactory Essays

    With technological evolution of digital media, eBooks and an abrupt rise in tech savvy readers there had been a dire need to understand change in consumer need and fulfil the growing gap. With the failure of its NOOK e-reader, declining tradition hardcover readers and constant pressure by competitor such as Amazon, it is no wonder why it is so difficult for them to compete. Apparently Barnes & Noble's present strategy is not working and is bringing…

    • 160 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    Bus 320 Final Paper

    • 1741 Words
    • 7 Pages

    Founded in 1995 by Jeff Bezos, Amazon.com has become one of the largest known online stores in the world. In 1995, Amazon.com sold its first book online, which was shipped from Bezos’s garage in Bellevue, Washington (Amazon.com Mission Statement, 2012). Many may not know that Amazon.com had a slow start because their online layout was not appealing. Within a few years Bezos attracted a few investors who took interest in his venture and invested approximately $140,000. Bezos decided to use the money to create a more appealing website to attract more customers. The sales for the next three years surpassed Bezos’s expectations. After analyzing the sales data, he found that people were not only purchasing domestically, but also from around the world. Amazon.com has grown from a small company to a worldwide business in just a few short years. This rapid growth requires a company to reevaluate how it does business if it plans to expand or maintain its marketplace for the future.…

    • 1741 Words
    • 7 Pages
    Better Essays
  • Better Essays

    In planning their business, Amazon had to take into account all internal and external factors to avoid catastrophic troubles while beginning their company. The same concept holds true, even today. Internal and external factors affect the planning, organizing, leading, and controlling (four functions of management) functions of management involved in the successful and continual growth of Amazon’s company. Their company began as a planned rival to Google and Microsoft, for lead in the online retail industry. With their original focus, Amazon used four different key values to help their business off-the-ground, and stay focused on their personalized progress. Their ability to zone-in on customers, dynamic pricing, personalized service, and brand variety was their plan for success (Amazon, 2011). It became a primary goal for Amazon to make their customers’ online shopping experience easier and more enjoyable while supplying dynamic pricing options and the convenience of a ‘one-stop’ retail ordering system. The business model of Amazon included selling books, compact discs, movies, electronics, and games. Currently, Amazon has the largest online retail selection because it extends its inventory out to offer home goods,…

    • 1179 Words
    • 5 Pages
    Better Essays
  • Better Essays

    With competition on the rise, the retail book industry has gone through numerous changes over the years, creating few opportunities and more threats. New developments in technology in the past decade and more businesses expanding their product offering have created intense rivalry between on-line based organizations and storefront organizations. “Intense rivalry among established companies constitutes a strong threat to profitability.” (Hill & Jones, 2010). Organizations such as Amazon.com and Barnes & Noble not only compete with each other, but also must fight to gain market share over retail stores such as Wal-Mart and Sam’s Club.…

    • 1656 Words
    • 7 Pages
    Better Essays
  • Better Essays

    Beginning in 1994, the widely popular Amazon was just a small, unknown online bookstore. Although you wouldn’t have known it back then, but Amazon soon became the business model for online retailing (Kroenke 29). But books weren’t…

    • 1735 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Barnes & Noble is a key player in the Book Retail Industry. This mature industry has been experiencing slow growth over the last several years, much slower than overall retail sales. Barriers to entry into this industry are quite high, and suppliers have modest influence over booksellers. The introduction of the Internet has brought about many changes to this industry. It has increased rivalry, buyer power, and substitutes. Spending time "surfing the net" is one of many substitutes to reading books nowadays. Other technological advances, such as VCR 's and video games, have replaced time otherwise spent reading. Buyers have greater influence over the industry, because they have more buying options and faster price comparison ability.…

    • 6747 Words
    • 27 Pages
    Good Essays
  • Good Essays

    Amazon is an online based selling business. Amazon.com sells thousands of items ranging from clothing, beauty products, books, electronic, plus so much more (“Essortment”, 2011). Amazon was founded by Jeff Bezos in 1994, focusing on the selling of books (“Essortment”, 2011). Following the creation of Amazon investors took interest, putting money into website design and expanding the range of items sold (“Essortment”, 2011). The decision to sell a variety of items brought success but in 2001 revenue had dropped and employees were being laid off (“Essortment”, 2011). Bezos, the original founder, came up with the idea of recruiting companies to sell their products through the Amazon website, this move generated the needed sales to get Amazon back on its feet and generate profits for all companies involved (“Essortment”, 2011).…

    • 517 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    In 1994, Jeff Bezos was a 30-year-old hedge fund analyst with a degree in computer science and electrical engineering from Princeton University. It was at this time Bezos decided to put his business plan in play. Jeff pulled up a file that had the business model he intended to use, which had been write in early that year in the passenger seat of a 1988 Chevy Blazer (A Retail Revolution Turns 10, 2005). Amazon.com opened its virtual doors on the World Wide Web in July 1995 and offers Earth’s Biggest Selection. The company seeks to be Earth’s most customer-centric company. Amazon.com is now a digital strip mall branching beyond books into music, DVDs, electronics and toys (Penenberg, 2000). Many people wonder how Amazon became on of the few dot-com companies to survive the dot-com bubble burst that took effect during 1997-2000. One of the best ways to evaluate Amazon’s performance is to complete a thorough review of its financial statement, pro forma financial statements, ratio analysis, return on equity, its calculated economic value added projects, and its financial policies.…

    • 2357 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    Foremost among the existing objectives of Amazon.com is to achieve market leadership as a priority over the attainment of short-term profitability goals (David, 2003). Jeff Bezos founded Amazon.com in 1994. From the beginning, Amazon.com was a Web-based company that focused on B2C (business to consumer) operations. The company's Web site became functional in July 1995. By September 1995, sales at Amazon.com were averaging $20,000 per week. Operationally,…

    • 747 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Barnes & Noble, Inc. operates as a content, commerce, and technology company in the United States. It provides access to books, magazines, newspapers, and other content through its multi-channel distribution platform. The company sells its products directly to customers through its bookstores and on barnesandnoble.com. Barnes & Noble conducts its online business through Barnes & Noble.com, one of the Web’s largest e-commerce sites, which also features more than 3 million titles in its eBookstore. Through Barnes & Noble’s NOOK eReading product offering, customers can buy and read eBooks on the widest range of platforms, including NOOK eBook Readers, devices from partner companies, and hundreds of the most popular mobile and computing devices using free NOOK software.…

    • 1177 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Jeff Bezos

    • 2133 Words
    • 9 Pages

    Jeff Bezos, the leader, had a wide set of values that he obviously followed in all the different decisions he took. The clearest ones are that he is creative, ambitious, broad minded, adventurous, courageous, intellectual and helpful. He has been creative as he thought out of the box and used some statistics about the internet usage rate along with the idea that books isn 't a thing that people would need to see and try before buying to mix them together and start the all new idea of selling books online, and thus started a small company based on a dream from his house and then shifted to an office. That was clear in the Harvard business review quoting "Given the attributes of the product and the structure of the supply chain, a no bricks retailer could clearly make it and make it big!”. Along with creativity came ambition and adventure where his ambition took him a step at a time into new opportunities of renting storage spaces, and allowing bidders to jump in, and compare their prices, which made it clear to customers that Amazon cares a lot about them and wants for them the best bid generating more customer loyalty and satisfaction. He was an intellect when he needed to be one as clear in the Fortune magazine interview saying " he concocted a business plan" meaning he wasn’t all dreamy without facing reality, he also cared about figures and plans to guarantee the idea 's success. Helpfulness also came along the way mentioning in the New York state university interview that his parents are currently running the Bezos family foundation which is focused on…

    • 2133 Words
    • 9 Pages
    Good Essays
  • Good Essays

    Amazon’s mission statement is “to be earth’s most customer-centric company where people can find and discover anything they want to buy online.” Amazon is now the world’s largest online retailer selling just about any product, even when they do not make a profit from them. Jeff Bezos (Amazon’s CEO) uses a cost leadership strategy to produce products and services with a lower cost than the competitors do. By offering the lowest prices he gains market share and brand recognition. For this strategy to succeed Amazon has to provide the widest range of products to achieve the economies of scale and benefit from the low costs of displaying those products online. Customer service is “first class” in Amazon. They have a reputation for being reliable, convenient, offers one of the lowest and fastest shipping, and once again the lowest prices. Strategic acquisitions by Amazon have also helped them thrive. They have acquired many small e-books companies to software companies and even Zappos, and Audible.com.…

    • 920 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Executive Summary of Amazon

    • 3297 Words
    • 14 Pages

    Amazon.com is a customer centric company. They put more effort in improving their system to make the experience of customer more comfortable so that he keeps on returning to the website. Jeffery Bezos who is the founder of the Amazon.com started this company after seeing the use of internet increasing rapidly.…

    • 3297 Words
    • 14 Pages
    Best Essays
  • Powerful Essays

    The operation of Amazon is different from traditional book store, as in a bookstore books are purchased directly from the publisher and are stored in anticipation to customer’s orders. Since Amazon sells books directly from distributor to customer, lots of costs such as transportation fee, loading/unloading fee, hiring people to serve in bookstore and other retailer running fees…

    • 979 Words
    • 4 Pages
    Powerful Essays