Amazon Strategic Analysis
Contents
1. Introduction 2 1.1 The overview of Amazon.com 2 1.2 Amazon’s business model and primary business 2
2. Strategic position of Amazon 3 2.1 PESTLE analysis 4 2.2 Industry and competitive environment analysis — Porter’s Five Forces Model 7 2.3 Internal environment analysis- SWOT 11
3. Suitability of Amazon’s corporate strategy 12 3.1 Growth through lower cost structure and lower prices. 12 3.2 Creating value for customers by using their technology expertise 14 3.3 Diversification and Expansion 16
4. Conclusion 17
5. Reference list 19
Introduction
1.1 The overview of Amazon.com
Amazon.com is an e-commerce company from America. The company was found by Jeff Bezos in 1994 and was one of the first major companies to sell goods on the Internet. It began as a solely online bookstore. With years of successful development its main business diversified into many other products and services in a wide range. Today Amazon.com has become one of the biggest online retailers and web services provider in the world. The chart below shows the financial performance of Amazon in recent years. From 2007 to 2011, the revenue increased dramatically in contrast with the net income. According the latest data revealed, by the end of 2012, Amazon’s revenue was over 61 billion US dollars. Under the strategy of internalization Amazon.com has developed separate websites for Canada, UK, Germany, France, China and so on. It also has many customer service centers and fulfillment & warehouses in many countries.
Figure 1
[pic]
Source from: http://healthcare.globaldata.com/expertinsightdetails.aspx?prid=985
This report is divided into a few sections. The first section is to analyze Amazon’s strategic position through a deep research of its external environment. In this section, approaches like PESTLE and Porter’s Five Force Model are deployed to find out Amazon’s competitive environment. The second section is to investigate the
1. Introduction 2 1.1 The overview of Amazon.com 2 1.2 Amazon’s business model and primary business 2
2. Strategic position of Amazon 3 2.1 PESTLE analysis 4 2.2 Industry and competitive environment analysis — Porter’s Five Forces Model 7 2.3 Internal environment analysis- SWOT 11
3. Suitability of Amazon’s corporate strategy 12 3.1 Growth through lower cost structure and lower prices. 12 3.2 Creating value for customers by using their technology expertise 14 3.3 Diversification and Expansion 16
4. Conclusion 17
5. Reference list 19
Introduction
1.1 The overview of Amazon.com
Amazon.com is an e-commerce company from America. The company was found by Jeff Bezos in 1994 and was one of the first major companies to sell goods on the Internet. It began as a solely online bookstore. With years of successful development its main business diversified into many other products and services in a wide range. Today Amazon.com has become one of the biggest online retailers and web services provider in the world. The chart below shows the financial performance of Amazon in recent years. From 2007 to 2011, the revenue increased dramatically in contrast with the net income. According the latest data revealed, by the end of 2012, Amazon’s revenue was over 61 billion US dollars. Under the strategy of internalization Amazon.com has developed separate websites for Canada, UK, Germany, France, China and so on. It also has many customer service centers and fulfillment & warehouses in many countries.
Figure 1
[pic]
Source from: http://healthcare.globaldata.com/expertinsightdetails.aspx?prid=985
This report is divided into a few sections. The first section is to analyze Amazon’s strategic position through a deep research of its external environment. In this section, approaches like PESTLE and Porter’s Five Force Model are deployed to find out Amazon’s competitive environment. The second section is to investigate the