AMAZON
Amazon.com has 66 millions active customers in the world. Amazon has used the internet in order to create a truly global business platform in which its growth is significantly increasing. Majority of the consumers consider it as the internet superstore that sells various products in over forty categories. It starts with books, music, electronics, auto parts, jewelries and groceries. In fact, nowadays, the company has gone beyond from its simple and humble business platform. It is already a giant e-commerce and internet technology platform now. It even already fulfilled a platform in the logistics area, as well as in e-commerce, so as in the internet technology platform. This company was founded in 1995 by Jeff Bezos. It started as an online bookstore; but as the time flies, Amazon has already expanded into its diverse business in the internet market. As strong evidence, today Amazon has marked its mission and goal … and that is to become a discoverer of anything that consumers from different countries might want to buy online. The major attractive factors of this online company is its low price, as well as it provides a total convenience shopping experience to all online shoppers. In the same manner, it has a wide range of product selections that many customers can choose from regardless of wherever they are in the globe. The company worldwide availability is associated with the virtuous cycle; and both of them has able to create an amazing growth that made Amazon from a bookstore and now has already made into a B retail machine store.
(http://www.amazon.com/TrendQualificationTradingTechniquesIdentify/dp/0470889667)
Furthermore, the outstanding ability of Amazon to develop into an internet platform in online business sector has given it a dominant position over bricks and mortar retailer such as HMV, Barnes & Noble and Water stones. In comparison to bricks and mortar retailers, Amazon Company has a small input costs when it comes to space rental, utilities and labor increase. Amazon and other technology dependent internet retailers reap the benefits and profits through the help of technological progress by the use of computational power, bandwidth, and data storage technologies that all improve the quality of the products and services and ablest to decline the cost all over the years of operation online. And, the most important thing is Amazon gets paid by the customers by its products before it pays its suppliers. Additionally, it has managed to build a retail business with a very minimal operating cash flow cycle due to its sophisticated inventory forecasting, fast inventory turns and overall operational efficiency and effectiveness. Working capital has effectively become a source of investment cash for the company. Correspondingly, the category growth rates comes from media categories such as 64 percent of its worldwide revenue comes from books, music and video. Amazon’s product footprint in the US has expanded into over 40 categories. New product categories represent significant growth opportunities for the company, given the lower online penetration rates in many of these categories. Revenue and growth rates for these categories have regularly outpaced the growth in media categories both in the US and other countries. In this regards, the Amazon’s digital media store has seen as important investment from the management and investors are anxiously waiting for the management and investors to launch new initiatives, downloadable music, video and text. (http://www.wikinvest.com/stock/Amazon.com_%28AMZN%29)
In some way, Amazon is not just in the business of selling products via the Internet such as:
1. It also sells its technology to other retailers (E-commerce platform sales)
2. It also sells fulfillment and customer services capabilities to sellers through Fulfillment by Amazon.
3. It also sells technology infrastructure via web services technologies for the developers such as EC2, S3 and SQS.
4. It also operates other website affiliates like:
- A9.com (search subsidiary)
- Alexa.com (web search and metrics subsidiary)
- IMDb.com (Internet Movie Database)
- Endless.com (shoe and handbag store)
- Clickriver.com (internet advertising platform)
- Mechanicalturk.com (human task marketplace)
- Askville.com (question/answer marketplace)
- Amapedia.com (product wiki)
(http://www.wikinvest.com/stock/Amazon.com_%28AMZN%29)
In the final note, Amazon has very discreet about its new initiatives and financial developments and projects it is working on. What is most important is the company has been able to show its determination to go with the online business trend nowadays, and that way it makes Amazon a major success in the online business together with its great profit potentials by the help of technical approaches and strategies. Nevertheless, According to Johnson and Scholes (2006) it is important to conduct external and internal business analysis in order to avoid the risk of a business failure. A strategic drift occurs when business strategies are consecutively fail to meet the financial standing of the company as well as the company performance declines. Therefore, to avoid this to happen Amazon.com must have a strategic change that may compliment with the environmental changes and setting to be able to avoid the threats of strategic drift. (http://www.scribd.com/doc/24854038/Amazon-Strategic-Plan)
References:
(http://www.amazon.com/TrendQualificationTradingTechniquesIdentify/dp/0470889667)
(http://www.wikinvest.com/stock/Amazon.com_%28AMZN%29)
(http://www.scribd.com/doc/24854038/Amazon-Strategic-Plan)
Credit:ivythesis.typepad.com
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