EBiz
E-Business
In- and After-class Assignment
E-BUSINESS ASSIGNMENT
!1
Five-force Analysis
Amazon is a common online bookstore that provide customers with a fast, user- friendly and enjoyable platform to shop on the Internet. It is one of the most successful Web retailers that are able to generate enormous revenue. Its growing speed is rapid that it quickly becomes a popular web retailer. It eventually becomes a place that offers everything people want to purchase using the fast-growing technology. The reason why Amazon can successfully expand its share in the industry will be revealed by the following Five-force Analysis.
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Supplier Power
Most of the products are not charged when the publishers provide them to Amazon. Amazon will pay the suppliers after the item is sold. This can prevent the products from stocking up. Moreover, Amazon will only keep a maximum quantity of 5 of their products online for customers to purchase so as to avoid excessive stocks. Also, most of the suppliers regard Amazon as an crucial and leading company in the industry. Therefore, they will continuously approve the orders from Amazon and transfer their products to customers through it. Besides, Amazon provides 24-hour online service that bring convenience to buyers who used to shop at midnight. This is an important advantage for them to stand out and attract more suppliers. Publishers have only limited resources to set up their own bookstores that they are less likely to build outlets by themselves. Hence, it is not favourable for them to undertake forward integration. !
Buyer Power
Amazon has a stronger buyer power when compared to traditional bookstores. One of the advantages is that Amazon is in the form of a website. It can minimise the operating cost such as rent, electricity, maintenance and those related to setting up a traditional stores. Therefore, without these expenses, Amazon can sell their books at a lower price than that of their non-online competitors. Also, it
In- and After-class Assignment
E-BUSINESS ASSIGNMENT
!1
Five-force Analysis
Amazon is a common online bookstore that provide customers with a fast, user- friendly and enjoyable platform to shop on the Internet. It is one of the most successful Web retailers that are able to generate enormous revenue. Its growing speed is rapid that it quickly becomes a popular web retailer. It eventually becomes a place that offers everything people want to purchase using the fast-growing technology. The reason why Amazon can successfully expand its share in the industry will be revealed by the following Five-force Analysis.
!
Supplier Power
Most of the products are not charged when the publishers provide them to Amazon. Amazon will pay the suppliers after the item is sold. This can prevent the products from stocking up. Moreover, Amazon will only keep a maximum quantity of 5 of their products online for customers to purchase so as to avoid excessive stocks. Also, most of the suppliers regard Amazon as an crucial and leading company in the industry. Therefore, they will continuously approve the orders from Amazon and transfer their products to customers through it. Besides, Amazon provides 24-hour online service that bring convenience to buyers who used to shop at midnight. This is an important advantage for them to stand out and attract more suppliers. Publishers have only limited resources to set up their own bookstores that they are less likely to build outlets by themselves. Hence, it is not favourable for them to undertake forward integration. !
Buyer Power
Amazon has a stronger buyer power when compared to traditional bookstores. One of the advantages is that Amazon is in the form of a website. It can minimise the operating cost such as rent, electricity, maintenance and those related to setting up a traditional stores. Therefore, without these expenses, Amazon can sell their books at a lower price than that of their non-online competitors. Also, it