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Case Analysis

INTRODUCTION

The first part of this paper discussed about the Amazon company firm description. The firm’s business model was discussed including the mission statement, vision and long term objectives. The history of Amazon was also explained and the core values and how they relate to the business model. While analyzing the firm, both industrial and external environmental analysis was outlined. The competitive analysis of the company and key success factors were also explained in detail.

This part will go further to discuss the firm’s internal environmental analysis including the SWOT factors, product portfolio, miles and snow typology and financial analysis. The industrial specific strategy will be explained in details based on the product life cycle, spatial matrix and SPACE matrix. While discussing about the success of any large firm like Amazon, it is important to analyze the strategy in details using ANSOFF matrix which includes the product development, market penetration and diversification. These matrixes help understand how the company competes with other online retailers.

FIRM/INTERNAL ENVIRONMENT ANALYSIS

While evaluating and analyzing the internal environmental analysis of Amazon.com, there is need to identify the SWOT factors of the firm at large. This will help the company to understand its strength, weaknesses, opportunities and strength in penetrating the e-commerce market.

Strength

Amazon.com has a lot of internal strength which makes it the leading online retailer across the world. These strengths include the business name of the firm and diversity. Almost everyone across the world knows about Amazon.co as the leading online book retailer. The marketing strategy and publicity of the company has made it to be at the top in this sector. Amazon has taken a different strategy from other companies by marketing its brand name and uniqueness in what it does. The one-click shopping used by Amazon is a strength that no other e-commerce business company has identified. The company has taken a different shift of low cost structure which has seen it to the top of other companies of selling at low costs increase sales which results in massive profit. Also the company has no investment in physical store but relies on online business hence, saving a lot to boot the profit.

Weakness

While the cost structure earns great profits, it is noted that this has affected Amazon.com in one way. Failing to balance between the expenses becomes a liability to the company. Besides not having a physical store, the company has spend a lot in streaming, movies and TV shows which should be account for.

Opportunities

Amazon.com already has a name to market itself. The company is a world-wide brand which has consumed the confidence of many people across its business territory. Source state that with future advancement in technology, the company will revolutionalize the grocery shopping. The company should explore the opportunity of technology with advancement of robotics to improve its way of shopping cart. Amazon has also invested much in the massive production of electronics which is trending on the market today.

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