Amazon Company Case Study Paper Example

7 pages
1793 words
Carnegie Mellon University
Type of paper: 
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Bezos founded Amazon Company in 1995. It is one of the leading e-commercial shops across the world. The company provides customers with various products online. The Company activities to a large extent receive massive influence from different factors. Such factors affect the business activities at both local and internal market. Such factors include the growth in internet connection, expansion of technology and innovation in the market. The companys brand name and level of competition also impact on its activities with Singapore internationally. The company performance in the market is good due to its high level of innovation as well as good marketing plans.

Brief History of the Company

The idea about the formation of Amazon company started way back in 1994 after Bezos resigned from his work as a vice-president of the Wall Street firm. Bezos got motivated after learning about a report published on matters of annual growth of the Web. Bezos developed an interest in looking for an opportunity over the internet and through that he was capable of identifying individual products which he thought would have high demand over the Web (Filson, 2004, pp.S135-S154).2004). Since many literature materials are available in the market, Bezos settled on selling books on The Web and that marked the formation of Amazon Company. The company initially opened its first office in Seattle since the management felt that they could easily access technology, human capital as well as full distribution point found in Oregon (Rossman, 2016). However, during the year 1994, the company was still named Cadabra until 1995 when named was changed to Amazon Company.

During the year 1995, a lot of events happened that shaped the future of Amazon Company. During this period, Bezos together with his team managed to build the companys website which enabled them to roll out the plan of selling books on the Web. The company was able to achieve a robust growth both regarding market accessibility and revenue generation (Haucap and& Heimeshoff, 2014, pp.49-61).2014). Notably, Amazon was able to operate exclusively as an online bookstore for a much extended period which implies that they did not face any direct competition in the market.

Today Amazon Company operates in a global arena as one of the leading online stores. Amazon Company offers its customers an opportunity to access various products such as music CDs, toys, softwares as well as sporting goods among others items (Laudon and& Traver, 2013). The recent innovation of the company includes Kindle e-book which enables customers to access books online.

Amazon opened its branch in Singapore to as a way of continuing with its international expansion plan. As a result, the company will unveil its prime services to customers in Singapore. Such decision was at after carefully considering the favorable environment that Singapore offers (Chauhan, 2015, pp.1021-1026). For instance, within Singapore, there are scores of people who have access to the internet as well as increasing number of individuals who prefer to use online shop outlets. Jeff Bezos is currently the richest individual in the world according to report by Bloomberg. Bezos took the number one slot after the shares of his company shoot by 1.3 % to $ 1,065.92 (Singh, Jain and Madan, 2016, pp.3-11). Besides, the company acquired more investment in the past such as whole retailer food at the cost of $ 13.7 billion that shows that its business portfolio has short up. Amazon Share of Music Sales In Comparison With Other companies as per the year 2009.

As indicated in the chart Amazon is competing fairly in the music market. The company market share has since increased due to the adoption of better strategies as well as increasing their innovation. The company is likely to archive more sales after the introduction of various loyalty programs.

Growth in Internet Connection

Growth in internet connection is one of the opportunities that favored the expansion of Amazon Company. From the period of 1990s countries across the world have continued to have more access to internet connections. Besides, some people are increasingly in possession of laptops and other devices such as smart phones which can easily be used to access the internet (Laudon and& Traver, 2013). Further, evidence shows that more companies are also venturing into internet connection because of the opportunities that come with such platform. Based on the number of full opportunities that internet offered, Jeff Bezos through his company, Amazon invested heavily on the choices and opportunities that e-commerce offer (Filson, 2014, pp.S135-S154).2014).

Increase in Other Technological Innovation

Changes in technological innovation affect the business locally and internationally. The Company invests a lot in research to as to identify the best possible way of meeting customers needs that keep changing with time as well as identify trending issues which can enable them to stay on top of their competitors in the market (Chauhan, 2015, pp.1021-1026).2015). Haucap and Heimeshoff (2014) notes that the company obtains such information through the various feedbacks as well as reviews that they get from their customers. The companies believe that using feedbacks from other customers helps them in building products that satisfy their target markets.

The company also has a strategy of maintaining their innovation more simply and attractively. For instance, the company through their sites gives their customers an opportunity to create a list of wish where they can suggest the kind of products that they are interested in buying (Singh, Jain and& Madan, 2016, pp.3-11).2016). Still, the company has improved their technology in a way that they are capable of offering their clients a variety of products on the same platform. Amazon also gives list customers an opportunity to sell their products through their website (Laudon and& Traver, 2013). Such developments point to the fact that technology has a tremendous impact on company especially on enabling it to understand the needs of their customers at the moment and in the future.

The situation is also the same in Singapore where Amazon Company emphasizes on delivering most innovating products. For instance, using innovation, the company rolled out Prime Video as one of its primary products in Singapore. This kind of service aims at ensuring that more customers can be able to subscribe to the various video at a lower price. Besides, the Company has also ventured into a new product called Kindle (Keller, Parameswaran and& Jacob, 2011). Therefore, the expansion of technology does not only impact on Amazon within its local operation in Singapore but also on a global frame work due to the gradual introduction of new products.

Increasing In Online Shopping Trends

Notably, many people prefer to shop for products online not only in Singapore but also in other parts of the world (Ritala, Golnam and& Wegmann, 2014, pp.236-249).2014). Within Singapore, there are other companies such as Alibaba-owned Lazada that conduct most of its activities online thereby creating a safe space for Amazon to compete favorably with other businesses (Kumar and& Vijayalakshmi, 2016). Such growing number of online customers enables the company to establish its operation closer to potential clients found in Singapore as well as other countries in the world.

The Brand Name

Amazon company has developed its brand over the years to the extent it many consumers of its products considers the Company reliable. The company system of operation is efficient, and they deal in genuine goods (Keller, Parameswaran and& Jacob, 2011). Such conducts transformed positively to consumers by making them like Amazon products. In Singapore, the company started a loyalty program that has since attracted more customers. Such kind of strategies where the business uses loyalty programs to sell its brand succeeded in other parts of the world such as the United States (Amit and& Zott, 2012, p.41).2012). Therefore the brand name of the company has significant effects on the business activities at a local level and at global arena. Brand name should attract customers as well as responds well to their needs.

A graph showing Amazon Company Revenue Performance vs. its competitors in $ 1bn (2013) (source, Evercore Group research)

Intense Competition operates in the market together with other strong competitors. Stiff competition when it comes to e-commerce business is both available locally and internationally. Some of the factors that make the business so competitive include the availability of alternatives in the market, high aggressiveness of other related firms as well as low switching costs (Kumar and& Vijayalakshmi, 2016). Businesses that operate using such structures both locally and internationally have aggressive retails which compete with one another. For instance, Wal-Mart has an e-commerce website that is expanding very fast. Again, Wal-Mart offers customers an alternative destination since they also stoke quality products and clients can buy online (Chauhan, 2015, pp.1021-1026).2015). To survive, Amazon must continue to change and develop its strategy in a way that can respond to the level of competition in the market. According to Amit and Zott (2012. p.41),(2012), the issue of low switching cost is a big challenge for the company since consumers find it easier to transfer from one firm to other alternative market destinations such as Wal-Mart. For instance, instead of ordering a product through Amazon website, a customer might decide to walk to physical stores strategically located across various countries. Thus, competition is a primary issue that impacts on the performance of the company both at its present and future activities.

In conclusion, several issues indicate that Amazon Company is performing pretty well in the market. The company share of the market is significant because of their superior marketing strategies. Factors such as the competitor, improvement in technology as well as the brand name among others mainly influence the performance of the company at its local and international market. The company needs to maintain a high level of innovation and good marketing to maintain or expand their market share.

Reference ListReferencesAmit, R. and, & Zott, C., 2012. (2012). Creating value through business model innovation. MIT Sloan Management Review, 53(3), p.41.

Chauhan, P., 2015. (2015). A Comparative study on consumer Preferences towards online retail marketers-with special reference to Flipkart, Jabong, Amazon, Snapdeal Myntra and fashion and you. IJAR, 1(10), pp.1021-1026.

Filson, D., 2004. (2004). The Impact of ECommerce Strategies on Firm Value: Lessons from Amazon. comCom and Its Early Competitors. The Journal of Business, 77(S2), pp.S135-S154.

Haucap, J. and, & Heimeshoff, U., 2014. (2014). Google, Facebook, Amazon, eBay: Is the Internet driving competition or market monopolization?. International Economics and Economic Policy, 11(1-2), pp.49-61.

Keller, K. L., Parameswaran, M. G. and, & Jacob, I., 2011. (2011). Strategic brand management: Building, measuring, and managing brand equity. Pearson Education India.

Kumar, V. S. and, & Vijayalakshmi, N., 2016. (2016). Emerging Trends in E-Commerce. ITIHAS-The Journal of Indian Management, 6(2).

Laudon, K. C. and, & Traver, C. G., 2013. (2013). E-commerce. Pearson.

Ritala, P., Golnam, A. and, & Wegmann, A., 2014. Coopetition-based (2014). Competition-based business models: The case of Amazon. com. Com. Industrial Marketing Management, 43(2), pp.236-249.

Rossman, J., 2016. (2016). The Amazon Way: 14 Leadership Principles...

Have the same topic and dont`t know what to write?
We can write a custom paper on any topic you need.

Request Removal

If you are the original author of this essay and no longer wish to have it published on the website, please click below to request its removal: