Amazon Business Practices Essay

AbstractThis sweetsprint provides strategic research for virago.com, starting with the mess and military complaint statements and an outer assessment of the emulous forces using the hall porter Five Forces model. overly included in this research is an evaluation of the intensive strategies used by virago in the areas of trade penetration, market and ingathering development. Additionally, a SWOT compendium is provided with the recommended five-year incarnate scheme.Strategic Research Project for virago.comvirago. com, an meshwork merchandise selling giant founded by Jeff Bezos, opened its virtual doors to its online store in July 1995. The partnership was incorporated in 1994 in the state of Washington and reincorporated in 1996 in Delaware. The Companys principal corporate offices are located in Seattle, Washington. amazon.com stainless its initial public offering in May 1997, and its common stock is listed on the Nasdaq Global Select musical scoreet to a lower place the symbol AMZN. ( amazon.comFAQ) Mission and Vision tiltThe mission/ resource statement of the bon ton is very simple and direct Our vision is to be earths more or less client centric company to show a place where people terminate come to ferret out and discover anything they readiness want to buy online. However it placid manages to tuck many of the characteristics of an effective mission/vision statement (1)Customers, it intends to the most customer centric company on earth. (2)Product or improvements It is broad and no precise about any particular service or point of intersection. (3)Markets Amazon intends to build a place where people can find anything they want to buyonline. (4)It is very brief.The broad(a) statement and vision is summed up in 2 sentences. Overall the company is accomplishing their mission and realizing their vision. Amazon is a global company and their name has become associated with online buying. Amazon.com, Inc. (Amazon.com) serves consu mers finished its retail Websites and focuses on selection, price, and convenience. The Companys quartette customer sets include consumers, sellers, enterprises and pith creators. It similarly manufactures and sells provoke devices. It offers programs, which enable sellers to sell their harvestings on its Websites and their own branded Websites and to fulfill orders through it. (Amazon.comINC, 2012) Competitive summaryThe industriousness that Amazon competes in is very competitive and changes quickly. An external assessment of the competitive forces using the Porter Five Forces model looks at competition among the competitors, potential unfermented competitors, potential ministration products and bargaining power for suppliers and consumers. (David, 2009).1.Competitors Amazon has grow in the gentlemans gentleman of birth control pills and is competing with Apple and Google, the Kindle is a direct competitor to Ipad. In the publishing and book world save Barnes and Noble is even comparable and Amazon is far more successful. In early(a)(a) areas Amazon is out performing its competitors comparable Walmart, Netflix also. (Amazon.comINC,2012)(Amazons Competitive Advantage, appendage Opportunities suffer It A Buy, 2012)2.New competitors there are endlessly youthful companies emerging in the mesh retail affair however Amazon has remained a giant and very profitable. (Amazons Competitive Advantage, Growth Opportunities Make It A Buy, 2012)3.Potential Substitute products innovation is the name of the plot of ground in the internet so Amazon always has the threat of the next trump thing but they stick around to be innovative as with their entry into the tablet world.4.Bargaining power with Suppliers and consumers Amazon is a relatively inexpensive way for suppliers to offer their product as head as a convenient one stop fail for consumers. Intensive StrategiesMarket penetration, market and product development are commonly referred to as inten sive strategies. They require intense efforts if a firm intends to improve its competitive margin with its products. (David, 2009). A market penetration strategy attempts to summation the market share of menstruationproducts. Amazon has a healthy relief sheet and is positioned to benefit from the continued bump in commerce from offline to online. Retail bankruptcies could continue to shift sales online. (Forbes.com 2012) A market development strategy involves introducing authentic products into new geographic areas. Amazon is experiencing growth in its international sales and is leveraged to two of the fastest growing platforms on the Internet, online search, and the Chinese e-Commerce market.A product development strategy seeks to increase sales by improving or changing present products. Amazon introduces Amazon Prime, a membership site for trusty customers that offers faster shipping of products and through a deal with Marshall Cavendish, one of the worlds leading book pub lishers and classroom digital solutions providers, Amazon has acquired over 450 titles of its US Childrens trade books business, a live on that will allow expansion into fork over books, chapter books and Young Adult novels.SWOT AnalysisStrengths, Weaknesses, Opportunities and Threats (SWOT) analysis, which provides information to analyze and evaluate the organizations strengths and weaknesses, is presented for Amazon.com. This is wide used as a strategy formulation technique and to help in identifying the most beneficial targets and strategies to pursue. Strengths Brand recognition, an industry leader in online sales. Customers satisfaction, very fast(a) Diversified, large variety of products, profitable business model, offered in different geographical markets. Weaknesses throw in shipping and all hold openy is outsourced. treble competitors, Consumer demand can trigger losses in revenue. International markets and currency, time to deliver versus a local bookstore Opportunit ies Expanding geographical markets, advances in technology, new products (the kindle), increase suppliers. Threats Competitors, the e-commerce field evolves rapidly and is highly competitive, companies much(prenominal) as EBay, Wal-Mart, Google and Yahoo. Lack of inventory to meet demand, no control over suppliers and pitch shot services, weakened economies foreign and domestic. Conclusion condescension all of the constant competitors that Amazon faces for its up-to-date and future market share it continues to befool a profit. With of constantevolution current business practices and continued innovation of new ones, Amazon should maintain its lead on its nearest competitors. I believe still expansion into international markets as well as more collaboration with other firms such as Microsoft to insure that its new innovations and products are main-stream, will continue to be profitable.ReferencesAmazons Competitive Advantage, Growth Opportunities Make It A Buy, (2012, 20 Jul) s eek Alpha.com Retrieved from http//seekingalpha.com/article/735201-amazon-s-competitive-advantage-growth-opportunities-make-it-a-buy Amazon FAQs, Amazon.comRetrieved from http//phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-faq14296 Amazon.com INC, (2012, 04 Dec) New York Times OnlineRetrieved from http//topics.nytimes.com/top/ news show/business/companies/amazon_inc/index.html AMAZON.COM INC (NASDAQ AMZN) Buy/Hold/ make out Analysis, Forbes.com Retrieved from http//finapps.forbes.com/finapps/BuyHoldSellAnalysis.do?tkr=AMZN David, F. R. Strategic management concepts (12th ed.), 2009 Upper commove River, NJ Prentice Hall Johnson, Mark W (2010, 12 April) Amazons Smart Innovation Strategy, Bloomberg Businessweek Retrieved from http//www.businessweek.com/innovate/content/apr2010/id20100412_520351.htm Order It Online, And Voil, (2012, 3 December) Wall avenue Journal Online Retrieved from http//online.wsj.com/article/SB10001424127887324712504578133602774225678.html?KEYWORDS=amazoncom articleTabs%3DvideoSWOT Analysis of Amazon, (2010, 9 September) MBA LecturesRetrieved from http//mba-lectures.com/marketing/swot-analysis-marketing/1157/swot-analysis-of-amazon-com.html