Amazon Company is an American multinational technology company that is based in Seattle, Washington (Bajari et al., 2019). It was founded in 1994 and expanded its business operation in 2015 by establishing an online market place for books, sell of electronics, video games, soft wares, furniture, foods, and jewelry (Bajari et al., 2019). The main business focus of the company is online trading, digital streaming, and artificial intelligence. The company is registered under Nasdaq stock exchange security, where it trades its shares. The business focus of the company comprises the competitive profile, the partnership profile, and compliance rules and regulations.
The company is considered to be one of the big four technology companies whose completion profile comprises of apple, google, and Facebook. From the secondary sources, it is clear that Amazon is the most influential economic force as well as a valuable brand in the world. In this report, the researcher focused on the business environment of Amazon Company. The research design involved the use of both qualitative and quantitative data analyses. Both primary data and secondary data helped in establishing the findings of the research and laying down the base of recommendations for the company's business operations.
The competition profile for Amazon Company comprises of many competitors. In this report, I used the revenue brackets of Amazon and its competitors were used to determine the competitive advantage. From the appendix, the Bar graph shows Amazon's competitors against the annual revenue generated by each competitor. The competitors comprise of eBay, Google, Baidu, and Facebook. It should be noted that the above are just a few of Amazon's competitors used for the sake of this report. From the graph, we can see that Amazon's highest revenue of $189 that its competitors. The results show that the company generates more revenues than its competitors. Therefore, amazon makes sales more than its competitors because eBay has a revenue of $39, Google has $ 24, and Mail.ru $ 10 (Krishnamurthy, 2004).
Amazon Business Strategy
The vision of the company is to select a wide trading area while focusing on the experience of the customers. In the achievement of the vision set by the company, Amazon works out to earn repeat purchase by availing an easy-to-use functionality, timely customer services, a trusted transaction environment, and reliable services for the company. The company is using free-shipping strategies to win more customers to buy their products. However, free shipment is set at a critical level for profit generation since the competition changed for the sake of promotional reasons. Amazon communicates on how to fulfill the existing promises in different ways, such as presentation of the current information concerning the inventory, options expected for the delivery, and delivery dates, including the shipment of the products.
Economies of Scale for Amazon
As a result of a technology standpoint, the company already incurred the fixed costs for developing soft wares that initiate online marketing (Culpepper et al., 2020). The fixed costs for the company can be achieved through the expansion of the product categories offered by the company. Amazon has realized this by changing its line of production by operating an online chemist.
The business analysis of Amazon Company Focuses on its competition environment, its business strategies, and the company's economies of scale. From a quantitative analysis of the revenue, it is clear that Amazon out ways its competitors. The economies' scale of Amazon exposes it in a better position to operate its business activities.
Bajari, P., Chernozhukov, V., Hortaçsu, A., & Suzuki, J. (2019, May). The impact of big data on firm performance: An empirical investigation. In AEA Papers and Proceedings (Vol. 109, pp. 33-37).
Culpepper, P. D., & Thelen, K. (2020). Are we all amazon primed? consumers and the politics of platform power. Comparative Political Studies, 53(2), 288-318. https://journals.sagepub.com/doi/abs/10.1177/0010414019852687
Krishnamurthy, S. (2004). A comparative analysis of eBay and Amazon. In Intelligent Enterprises of the 21st Century (pp. 29-44). IGI Global.
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