The company was ranked third in the FTSE all share index ranking as at the close of 31st August, with a market capitalization of 82,
Its catalogue has a wide range of products and services for its customers Amazon. It must be noted that this is not a unique offering if compared to its rivals like e-bay, Barnes and Noble, Waterstones and WH Smith.
Its distinctiveness comes from two things: Unique position compared to rivals Success of Kindle e reader Amazon possesses a first mover advantage as it has access to vital resources plus ability to develop networks that is very difficult to replicate Grant Amazon has a strong brand presence because of its continuous innovation and twenty month head start over its competition.
Over a period of time it has acquired vital customer behaviour information, easy demand pattern forecasting and industry standards others have to compete with Mellahi and Johnson An added advantage is psychological switching costs because of its early lead.
Due to this it is able to set consumer prices as Amazon makes wholesale purchases. Competition is suppressed and new entrants face a hard time because of its heavy discounted prices. The Kindle e reader has made a huge presence in the market because of its light weight and soothing continuous readability handling.
According to Stross Kindle lets you do reading perfectly. However competing e readers are providing coloured screens and multitasking features too. This has already been discussed in the first question. However bargaining power of buyers and suppliers is not discussed. But Amazon has a high customer loyalty as it attracts customers by offering low prices Chaffey Bargaining Power of Suppliers Amazon has a very favourable relationship with publishers because of the wholesale model it uses allowing it to set the price for the consumer.
Some time back when Amazon was not buying directly from main distributors.
However Amazon had a unique position and advantage as it came up with its own distribution centres. This strength feeds into its greater market share and bargaining power with its publishers plus a wholesale model lot leading to high sales volumes.
Weakness of Amazon is its very little bricks and mortar presence in comparison to its competitors. Thus, buyer is not able to have a first-hand experience of the product until purchased Bossman This can have an effect on the sales of Kindle online as buyers may have some concerns.
The proprietary format followed for e books is also a weakness as there is a demand for more choice and scope from customers. Below is a diagrammatic representation of SWOT analysis.
Market penetration leads to a high market share and profitability in an identified market Jobber and Fahy Amazon can move into the empty quadrant in the figure 1 by providing a coloured screen. This product development approach will make it more competitive in the dynamic market.Sheng Siong is applying the functional organization where by it divides into different divisions such as Finance, Human Resources, Information Technology, Purchasing and Retail Operations.
It is also a centralized organization since it was originally a family business. Swot Analysis And Porters Five Forces Information Technology Essay.
Print Reference this. SWOT Analysis of Intellectual Technology. Information Technology Essay Writing Service Free Essays More Information Technology Essays Examples of Our Work Information Technology Dissertation Examples. Of particular importance at the industry level is Porter's five forces model and the stage of the life cycle model.
Which factors in the macroenvironment will appear salient depends on the specific company being analyzed. The SWOT analysis will have provided you with information on the company's functional competencies.
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