Abstract Science Construction’s business is in planning, developing and building road projects. The major of its clients are municipalities, city governments, and other public sector entities. While the bankruptcy rates for these clients is very low, when economic downturns happen, their ability to pay in a timely fashion also suffers. This leads to businesses such as Science Construction needing to take on additional debt and to find creative methods in order to stay afloat during times of recession. Methods such as selling accounts receivables at discounted rates and taking larger lines of credit through banks and other lending institutions are some of the ways organizations can remain viable when their cash inflows have turned into a trickle. Science Construction is asking the Turkish Courts to postpone their bankruptcy proceedings for a year while they attempt to restructure. Through this, suggestions such as forcing shareholders to pay their debt to the organization, gaining credi
Develop a case report for the Amazon.com case using case report rubric and guidelines
Case report must integrate your concepts and include some of the input of your peers from the discussion assignment conducted in the previous unit.
According to REIFF (2019), "Amazon.com, Inc. (AMZN) is an e-commerce and cloud computing company headquartered in Seattle, Washington. It is known as the largest Internet retail company in the world. The company started as an online bookstore but has diversified to sell DVDs, software, video games, electronics, apparel, furniture, food, toys, and jewelry. The company also builds and sells its own consumer electronics such as the Amazon Kindle and Amazon Echo”.
To develop a report for the Amazon.com, we will talk about its competitive forces, value chain models, business strategy, as well as its market expansion and the marketing 5P’s.
Amazon’s Competitive forces.
In concurrence with several other companies, such as Alibaba, eBay, Walmart, and even the smallest online retail stores, Amazon.com today with the global reach of e-commerce are exposed to a diverse set of external forces. Thus, Amazon.com must ensure that it is adapting to changing economic conditions in the online retail sector. Porter's five-force analysis model is the model on which the intensities of external factors that affect Amazon are based.
According to GREENSPAN (2019), the 05 Porter’s Five Forces Analysis model is:
1- Competitive rivalry or competition (strong force)
2 - Bargaining power of buyers or customers (strong force)
3 - Bargaining power of suppliers (moderate force)
4 - Threat of substitutes or substitution (strong force)
5 - Threat of new entrants or new entry (weak force)
1- Competitive rivalry or competition (strong force)
In competition with powerful competitors, Amazon needs to be better prepared with its external factors that are responsible for competition or the competitive environment that are:
- High aggressiveness of firms (strong force)
- High availability of substitutes (strong force)
- Low switching costs (strong force) GREENSPAN(2019)
2-Bargaining Power of Amazon’s Customers/Buyers (Strong Force)
Amazon.com has entrenched its e-commerce vision and mission on the customer. Consumers have access to high-quality information regarding the services of online retailers and the products they sell. This aspect of Porter's five-force analysis model determines how consumers influence businesses and the industry, and the following external factors support the strong influence of Amazon:
- High quality of information (strong force)
- Low switching costs (strong force)
- High availability of substitutes (strong force) GREENSPAN(2019)
3- Bargaining Power of Amazon’s Suppliers (Moderate Force)
The availability of supplies or materials that Amazon.com Inc. requires for its e-commerce operations, such as hardware components of information systems are controlled by vendors whose influence on the retail environment Online is described in this aspect of Porter's Five Forces Model of Analysis.
According to GREENSPAN (2019), Amazon feels the moderate intensity of suppliers' bargaining power based on the following external factors:
- Small population of suppliers (strong force)
- Moderate forward integration (moderate force)
- Moderate size of suppliers (moderate force) GREENSPAN(2019)
4 - Threat of Substitutes or Substitution (Strong Force)
Several subtitles in the online retail market are competing with amazon.com Inc., so Porter's five-strength model of analysis identifies the effect of substitutes on the industry's environment, and so in the case of Amazon, the following external factors confirm the high intensity of the threat of substitution thus allowing Amazon to continually face the strength of substitutes, which threaten its performance of the e-commerce company:
- Low switching costs (strong force)
- High availability of substitutes (strong force)
- Low cost of substitutes (strong force) GREENSPAN(2019)
5 - Threat of New Entrants or New Entry (Weak Force)
With increasing competition, Amazon is seeing its market in online retailing potentially reduced by new businesses, however, the effects of new entrants are factored into this aspect of the five-business model. Porter's forces.
Because of the ease of Amazon consumers to transfer their activities to new businesses, these new companies can impose a powerful force on their business.
Thus, the following external factors allow Amazon to whether the threat of a new entry into the market. -
- Low switching costs (strong force)
- High cost of brand development (weak force)
- High economies of scale (weak force) GREENSPAN(2019)
Amazon Value chain models
According to Dudovskiy (2018), "Value chain analysis is an analytical framework that assists in identifying business activities that can create value and competitive advantage to the business. This figure illustrates the essence of Amazon value chain analysis."
- Amazon Inbound logistics and outbound
Fulfillment by Amazon (FBA) is one of the options available from Amazon and is the cornerstone of Amazon's incoming logistics for the company's retail business. With this option available to sellers, they use it by storing their inventory in Amazon distribution centers, which thereby assumes full responsibility for product returns, logistics, and customer service. (Dudovskiy,2018)
Amazon outbound logistics integrates the following: Fulfilment centres, Co-sourced and outsourced arrangements, Digital delivery, Physical stores. (Dudovskiy,2018)
- Amazon Operations
Amazon operations are organized into three segments: North America. This segment operates North America-focused websites such as www.amazon.com, www.amazon.ca, and www.amazon.com.mx. International. This segment operates internationally focused websites such as www.amazon.com.au, www.amazon.com.br, www.amazon.cn and others. Amazon Web Services (AWS). This segment deals with global sales of computing, storage, database, and other service offerings for start-ups, enterprises, government agencies, and academic institutions. (Dudovskiy,2018)
- Amazon Marketing and Sales
Several components of the marketing communication mix such as print and media advertising, sales promotion, events and experiences, public relations and direct marketing are used in an integrated way in order to communicate the marketing message to the target customer segment. (Dudovskiy,2018)
- Amazon Service
Amazon Marketplace and Prime has two types of customers – sellers on and buyers from Amazon platform. For sellers, Amazon offers Selling Coach program “alerting sellers about opportunities to avoid going out-of-stock, add selection that’s selling, and sharpen their prices to be more competitive”. (Dudovskiy,2018)
Amazon Business Strategy
The combination of economies of scale, the innovation of various business processes and a constant diversification of activities are economic models allowing thanks to extremely thin profit margins to compete in an increasingly competitive market. Amazon in its commercial strategy has put in place a cost control pushed to the extreme allowing him to integrate effectively these economic models, which allows him to establish himself as one of the leaders today.
Amazon's business strategy can be described as cost control pushed to the extreme. The global online retailer operates with extremely thin profit margins and succeeds through the combination of economies of scale, innovation in various business processes and constant diversification of its operations.
According to Dudovskiy (2018), "Amazon's business strategy is guided by four principles: the customer's obsession over the competitor's, the passion for invention, the commitment to operational excellence, and the long-term reflection. term."
Amazon has therefore implemented four steps that define its business strategy
1. Regularly entering new niches and segments.
2. Strengthening Amazon ecosystem.
3. Uncompromised focus towards customer service.
4. Focusing on Amazon leadership values. (Dudovskiy,2018)
Amazon Marketing Mix
5 P's are key marketing elements designed for years allowing companies to think strategically. Considered as a mix of business activities, its goal is to develop the company's brand as well as a good consistency in its operation and facing competition with a strong proposal of products or services different from those of competitors. It suggests that there are five points of a business: Promotion, People, Price, Product, Place.
Promotion
Print and media advertising, sales promotion, public relations and direct marketing are marketing strategies used by Amazon to develop its brand by posting a consistent message about its products.
People
The people element refers to the Amazon staff and its different customers. This covers Amazon's service levels to her clientele, as well as effective communication and training of her staff.
Price
In the amazon price proposition, the fact is that profit margins for products and services are very slim and affordable, which is part of its overall pricing strategy (cost control approach, penetration price, price reduction , psychological price, product line price and geographic price strategies) (www.mindtools.com).
Product
In Amazon's wide product range, we have proposals such as literature, music, movies at the online grocery store, cloud computing and film and TV production, with a convenient and easy package. To manipulate. This extensive product range gives it a huge competitive advantage. (Fleerackers, T., 2010) Place With the world becoming a global village thanks to technology, Amazon has opted for an online business, which is very convenient for buyers around the world who buy a variety of items more easily. The speed in delivery of these different products at affordable fees makes Amazon more and more competitive. (Fleerackers, 2010).
In conclusion, with its agility and diversity, Amazon maintains its leading position in its sector and will certainly remain so for a long time.
Amazon's strategic relationship with its suppliers, its standard operating practices being the same regardless of the purchase are assets that make everything very easy and allow it to keep its customers loyal. And although it has a competitive rivalry Growing intensely with competitors such as Etsy.com, Walmart, eBay, Alibaba, Flipkart, and others, Amazon remains the leader.
Reference.
- Dudovskiy, J. (1018). Amazon Value Chain Analysis.
Retrieved from https://research-methodology.net/amazon-value-chain-analysis/
- GREENSPAN, R. (2019). Amazon.com Inc. Five Forces Analysis & Recommendations (Porter’s Model)
Retrieved from http://panmore.com/amazon-com-inc-five-forces-analysis-recommendations-porters-model
- Dudovskiy, J. (1018). Amazon Business Strategy and Competitive Advantage: cost leadership & customer centricity
Retrieved from https://research-methodology.net/amazon-business-strategy-competitive-advantage-benefiting-cost-leadership-diversification/
- Fleerackers, T. (2010). Case: Amazon.com. Retrieved May 23, 2016,
Retrieved from https://flatworldbusiness.wordpress.com/flat-education/intensify/creating-a-flat-business/case-amazon-com/
- Business. (2018). The 5 Ps of marketing
Retrieved from https://www.business.gov.au/marketing/advertising/the-5-ps-of-marketing
Case report must integrate your concepts and include some of the input of your peers from the discussion assignment conducted in the previous unit.
According to REIFF (2019), "Amazon.com, Inc. (AMZN) is an e-commerce and cloud computing company headquartered in Seattle, Washington. It is known as the largest Internet retail company in the world. The company started as an online bookstore but has diversified to sell DVDs, software, video games, electronics, apparel, furniture, food, toys, and jewelry. The company also builds and sells its own consumer electronics such as the Amazon Kindle and Amazon Echo”.
To develop a report for the Amazon.com, we will talk about its competitive forces, value chain models, business strategy, as well as its market expansion and the marketing 5P’s.
Amazon’s Competitive forces.
In concurrence with several other companies, such as Alibaba, eBay, Walmart, and even the smallest online retail stores, Amazon.com today with the global reach of e-commerce are exposed to a diverse set of external forces. Thus, Amazon.com must ensure that it is adapting to changing economic conditions in the online retail sector. Porter's five-force analysis model is the model on which the intensities of external factors that affect Amazon are based.
According to GREENSPAN (2019), the 05 Porter’s Five Forces Analysis model is:
1- Competitive rivalry or competition (strong force)
2 - Bargaining power of buyers or customers (strong force)
3 - Bargaining power of suppliers (moderate force)
4 - Threat of substitutes or substitution (strong force)
5 - Threat of new entrants or new entry (weak force)
1- Competitive rivalry or competition (strong force)
In competition with powerful competitors, Amazon needs to be better prepared with its external factors that are responsible for competition or the competitive environment that are:
- High aggressiveness of firms (strong force)
- High availability of substitutes (strong force)
- Low switching costs (strong force) GREENSPAN(2019)
2-Bargaining Power of Amazon’s Customers/Buyers (Strong Force)
Amazon.com has entrenched its e-commerce vision and mission on the customer. Consumers have access to high-quality information regarding the services of online retailers and the products they sell. This aspect of Porter's five-force analysis model determines how consumers influence businesses and the industry, and the following external factors support the strong influence of Amazon:
- High quality of information (strong force)
- Low switching costs (strong force)
- High availability of substitutes (strong force) GREENSPAN(2019)
3- Bargaining Power of Amazon’s Suppliers (Moderate Force)
The availability of supplies or materials that Amazon.com Inc. requires for its e-commerce operations, such as hardware components of information systems are controlled by vendors whose influence on the retail environment Online is described in this aspect of Porter's Five Forces Model of Analysis.
According to GREENSPAN (2019), Amazon feels the moderate intensity of suppliers' bargaining power based on the following external factors:
- Small population of suppliers (strong force)
- Moderate forward integration (moderate force)
- Moderate size of suppliers (moderate force) GREENSPAN(2019)
4 - Threat of Substitutes or Substitution (Strong Force)
Several subtitles in the online retail market are competing with amazon.com Inc., so Porter's five-strength model of analysis identifies the effect of substitutes on the industry's environment, and so in the case of Amazon, the following external factors confirm the high intensity of the threat of substitution thus allowing Amazon to continually face the strength of substitutes, which threaten its performance of the e-commerce company:
- Low switching costs (strong force)
- High availability of substitutes (strong force)
- Low cost of substitutes (strong force) GREENSPAN(2019)
5 - Threat of New Entrants or New Entry (Weak Force)
With increasing competition, Amazon is seeing its market in online retailing potentially reduced by new businesses, however, the effects of new entrants are factored into this aspect of the five-business model. Porter's forces.
Because of the ease of Amazon consumers to transfer their activities to new businesses, these new companies can impose a powerful force on their business.
Thus, the following external factors allow Amazon to whether the threat of a new entry into the market. -
- Low switching costs (strong force)
- High cost of brand development (weak force)
- High economies of scale (weak force) GREENSPAN(2019)
Amazon Value chain models
According to Dudovskiy (2018), "Value chain analysis is an analytical framework that assists in identifying business activities that can create value and competitive advantage to the business. This figure illustrates the essence of Amazon value chain analysis."
- Amazon Inbound logistics and outbound
Fulfillment by Amazon (FBA) is one of the options available from Amazon and is the cornerstone of Amazon's incoming logistics for the company's retail business. With this option available to sellers, they use it by storing their inventory in Amazon distribution centers, which thereby assumes full responsibility for product returns, logistics, and customer service. (Dudovskiy,2018)
Amazon outbound logistics integrates the following: Fulfilment centres, Co-sourced and outsourced arrangements, Digital delivery, Physical stores. (Dudovskiy,2018)
- Amazon Operations
Amazon operations are organized into three segments: North America. This segment operates North America-focused websites such as www.amazon.com, www.amazon.ca, and www.amazon.com.mx. International. This segment operates internationally focused websites such as www.amazon.com.au, www.amazon.com.br, www.amazon.cn and others. Amazon Web Services (AWS). This segment deals with global sales of computing, storage, database, and other service offerings for start-ups, enterprises, government agencies, and academic institutions. (Dudovskiy,2018)
- Amazon Marketing and Sales
Several components of the marketing communication mix such as print and media advertising, sales promotion, events and experiences, public relations and direct marketing are used in an integrated way in order to communicate the marketing message to the target customer segment. (Dudovskiy,2018)
- Amazon Service
Amazon Marketplace and Prime has two types of customers – sellers on and buyers from Amazon platform. For sellers, Amazon offers Selling Coach program “alerting sellers about opportunities to avoid going out-of-stock, add selection that’s selling, and sharpen their prices to be more competitive”. (Dudovskiy,2018)
Amazon Business Strategy
The combination of economies of scale, the innovation of various business processes and a constant diversification of activities are economic models allowing thanks to extremely thin profit margins to compete in an increasingly competitive market. Amazon in its commercial strategy has put in place a cost control pushed to the extreme allowing him to integrate effectively these economic models, which allows him to establish himself as one of the leaders today.
Amazon's business strategy can be described as cost control pushed to the extreme. The global online retailer operates with extremely thin profit margins and succeeds through the combination of economies of scale, innovation in various business processes and constant diversification of its operations.
According to Dudovskiy (2018), "Amazon's business strategy is guided by four principles: the customer's obsession over the competitor's, the passion for invention, the commitment to operational excellence, and the long-term reflection. term."
Amazon has therefore implemented four steps that define its business strategy
1. Regularly entering new niches and segments.
2. Strengthening Amazon ecosystem.
3. Uncompromised focus towards customer service.
4. Focusing on Amazon leadership values. (Dudovskiy,2018)
Amazon Marketing Mix
5 P's are key marketing elements designed for years allowing companies to think strategically. Considered as a mix of business activities, its goal is to develop the company's brand as well as a good consistency in its operation and facing competition with a strong proposal of products or services different from those of competitors. It suggests that there are five points of a business: Promotion, People, Price, Product, Place.
Promotion
Print and media advertising, sales promotion, public relations and direct marketing are marketing strategies used by Amazon to develop its brand by posting a consistent message about its products.
People
The people element refers to the Amazon staff and its different customers. This covers Amazon's service levels to her clientele, as well as effective communication and training of her staff.
Price
In the amazon price proposition, the fact is that profit margins for products and services are very slim and affordable, which is part of its overall pricing strategy (cost control approach, penetration price, price reduction , psychological price, product line price and geographic price strategies) (www.mindtools.com).
Product
In Amazon's wide product range, we have proposals such as literature, music, movies at the online grocery store, cloud computing and film and TV production, with a convenient and easy package. To manipulate. This extensive product range gives it a huge competitive advantage. (Fleerackers, T., 2010) Place With the world becoming a global village thanks to technology, Amazon has opted for an online business, which is very convenient for buyers around the world who buy a variety of items more easily. The speed in delivery of these different products at affordable fees makes Amazon more and more competitive. (Fleerackers, 2010).
In conclusion, with its agility and diversity, Amazon maintains its leading position in its sector and will certainly remain so for a long time.
Amazon's strategic relationship with its suppliers, its standard operating practices being the same regardless of the purchase are assets that make everything very easy and allow it to keep its customers loyal. And although it has a competitive rivalry Growing intensely with competitors such as Etsy.com, Walmart, eBay, Alibaba, Flipkart, and others, Amazon remains the leader.
Reference.
- Dudovskiy, J. (1018). Amazon Value Chain Analysis.
Retrieved from https://research-methodology.net/amazon-value-chain-analysis/
- GREENSPAN, R. (2019). Amazon.com Inc. Five Forces Analysis & Recommendations (Porter’s Model)
Retrieved from http://panmore.com/amazon-com-inc-five-forces-analysis-recommendations-porters-model
- Dudovskiy, J. (1018). Amazon Business Strategy and Competitive Advantage: cost leadership & customer centricity
Retrieved from https://research-methodology.net/amazon-business-strategy-competitive-advantage-benefiting-cost-leadership-diversification/
- Fleerackers, T. (2010). Case: Amazon.com. Retrieved May 23, 2016,
Retrieved from https://flatworldbusiness.wordpress.com/flat-education/intensify/creating-a-flat-business/case-amazon-com/
- Business. (2018). The 5 Ps of marketing
Retrieved from https://www.business.gov.au/marketing/advertising/the-5-ps-of-marketing
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