Amazon.com Write Up About This E-Commerce Sector

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Amazon Case Study
Amazon is currently the leading company in the e-commerce sector, whose success can be attributed to several factors. The company’s success and growth are attributed to the strategies that it has adopted since its inception in 1994. Initially started as an online book store, the company has diversified into online retailing, offering a wide range of products for third party companies. The Amazon business model has proven effective as evidenced by the success achieved, but the current business environment is characterized by stiff competition, which poses a threat to Amazon.
Amazon’s external environment is characterized by stiff competition. The online retailing business has grown tremendously with the invention of the internet and revolutionized the 21st-century marketplace. Amazon’s competitiveness has been rooted in its ability to change its business strategies based on market trends. For instance, as internet companies increased in the 90s, the company launched its amazon.com Advantage, which only focused on sales of specific publishers and authors. This was followed by Amazon.com Kids for teenagers and kids. In the years that followed, the company focused on exploiting the popularity of the internet-based services such as the acquisition of IMDB in 1998 and within the same year, the company became the leading online video retailer. The company is the leader in the online retail business, with major rivals such as Alibaba and eBay posing a major threat. Thus, the intensity of rivalry is high. Also, since the company operates in a technology-driven sector, it faces the threat of new entrants. With the increased innovation, the company has intensified its rate of innovation.
Internal Analysis focuses on distinctive competencies and generic strategies. Amazon’s key strength originates from their focus on what customer’s need. From the start, the company focused on making e-commerce easy, secure, and attractive for online buyers. The company has achieved a wide pool of resources, which has enabled its expansion into different product categories and regions globally. The resources have enabled the company to invest in research, which enables it to align its objectives and activities with the projected trends.
Amazon’s corporate strategy can be termed as conce...