AMAZON.COM: EVALUATING BUSINESS STRATEGY AND COMPETITIVE ADVANTAGES

Amazon.com Analysis
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Amazon.com Analysis
Amazon.com operates in the retail industry where it offers products and services to customers, both online and offline. The following is an analysis of Porter’s five competitive forces, which will assist in identifying the strengths and weaknesses of Amazon.com.
Threats of New Entrants
The retail industry relies heavily on brand recognition and thus, new firms face a great challenge in establishing and growing their brands enough to compete with Amazon and other retail firms. Besides, Amazon has high economies of scale, which new firms cannot easily achieve.
Threat of Substitute Products/ Services
Amazon has to compete with other firms that offer substitute products, which, coupled with the low customers’ switching costs, makes substitute products a great threat to Amazon.
Bargaining Power of Suppliers
Amazon faces some modest force from the bargaining power of suppliers because suppliers can go to other rivalries of Amazon and offer them their services/ pro...