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Amazon.com: Analysis and study of strategic decisions

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Acepublisher .
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documents in English
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case study
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16 pages
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  1. Introduction
  2. External analysis
    1. Market Analysis
    2. Analysis with respect to shareholders
    3. Analysis of competition
    4. Assessment of threats & opportunities
  3. Internal analysis
    1. Forces
    2. Weaknesses
  4. Review of strategic directions
    1. Strategy cost/volume for the differentiation
    2. Diversification Strategy
    3. Internationalization Strategy
    4. Loyalty Strategy
  5. Conclusion

Human beings are often known for their ability to adapt. This is reflected particularly on the scale of the company, which, if it captures a large market share for a period, all things being equal, it can also be modified in a context growing in strategic reorientation.

The gradual emergence of new technologies for digital broadcasting, through the opening to the public Internet in 1990 (www), greatly upset many markets, this has tended to gradually create new sales channels, a new "place of purchase?.

For the players in the market, it did not change immediately, but in a new area where officers were not necessarily the most informed, were upset that the precursors pre-established organizations and imposed businesses.

In 1994, Jeffrey Preston Bezos, Seattle created amazon.com. The rise was phenomenal. Two years after its inception, the company went public at Nasdaq in New York. The explosion of Internet access enabled the company to become a global giant of culture. In late 2004, the enterprise made almost all of its revenue on the Internet, and had 9000 employees for a turnover of around 8.5 million dollars. The company also suffered some financial charges, and one will see that it is very interesting to see how Amazon has launched and how it has continuously adapted to the markets to maximize its advantage when starting.

This study will be articulated around this problem: "How Amazon was able to penetrate the market eventually, and adapt to remain a leader in e-business." In the first part, the focus will be on an external analysis of the company, with the support of an internal analysis, and it will make a complete study of the company's strategic directions.

In conclusion, it will recall a synthetic material, which then will lead to the identification of the key elements of the focus of this analysis, to finally provide a recommendation to the company.

It is interesting to note that in 1997, stores such as multimedia FNAC and Virgin showed the best results, while bookstores had seen their results decrease. These are the main victims because of the arrival of substitutes and also because of the changing profiles of consumers.

Indeed, one has seen in recent years technological developments occurring rapidly. This results in the emergence of new distribution media for leisure but also by creating new cultural product. The advent of CDs and DVDs came directly to compete with paper and go beyond as evidenced by the CD-audio music, DVD-Video for movies and even CD-ROMs for video games and software.

Also books in digital form are emerging as evidenced by the initiatives taken by the company Havas, which aims to broadcast all of its Internet offers in three years.

Moreover, this trend seems to be reinforced by the changing profile of consumers since through a survey conducted in 1997 on the French cultural practices, it was found that the proportion of strong players, that is to say, those buying products that are more than twenty-five pounds a year, tend to decrease and is only 14% now against 17% in 1988.

The emergence of substitute products is not foreign and the generation of 15-24 year olds, due to the expansion of the supply of cultural products, no longer consumes the same way as the older generation.

Tags: amazon.com, e-business, company analysis,

[...] At the start of summer 1998, Amazon expanded its offering to include music, video, software, equipment for the home, garden or car, luxury, beauty, and even the auction segment, with a joint venture with Sotheby's. The company became a real online shopping mall, and strengthened its e-business in Gross's book. Though Amazon was a pioneer in 1994, things changed in the following years with the arrival of dozens of competitors exerting strong competitive pressure. The company, once again, showed the ability to adapt intelligently to changing market conditions. [...]


[...] Forces Weaknesses Strong competitive advantage as - Computers and internet are not a pioneer and leader in online accessible to everyone sales - Payment by internet worries some Wide variety of products offered potential buyers Search mode easier for the - The need to secure transactions customer - Profitability negative until 2002 -Provision of information on many products, with personalized services Fast Delivery Competitive and attractive prices Lack of physical selling locations Advances in computer technology and Internet marketing through innovation Reputation, image Investor confidence Network of partners which is important Part III A study of the strategic directions III.A - Cost / volume strategy for differentiation A differentiation strategy should be considered when contemplating entry into a market that is already being served by competitors, or a market which is mature, and has a fiercely competitive business that sells standardized products to the same target, which generally responds in the same way. [...]


[...] In addition, the current intensity of competition and the limited possibilities of differentiation vis-a-vis the competition does not favor the entry of new competitors. Online booksellers While Amazon is considered the pioneer of this type of sale, many libraries have begun to appear since 1996, willing to try their luck in the sales on the net. This trend is explained by the absence of constraints on the establishment of a library. Here we can distinguish between the categories of distributors: - Virtual bookstores like Amazon and some of the libraries as alapage.com follow the will of the libraries that are diversifying their offer with other media (music, CD, CD-Rom, DVD) and other services (eg ticketing). [...]

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