AMAZON Competitive and Industry Analysis Patricia Martinez Bryan

AMAZON Competitive and Industry Analysis Patricia Martinez, Bryan Arias, Shavena Smith

Introduction o The face of the e-commerce phenomenon o Sells diverse products o Sustains competitive advantage and superiority among competitors by specializing and providing what others cannot

Background o One of the first large companies over the internet o Originally, was only an online bookstore but they were going to lose business to Barnes & Noble if they did not become diverse with their products o Mission Statement: “We strive to offer our customers the lowest prices, the best available selection, and the utmost convenience”

CHIEF BUSINESS AND ECONOMIC CHARACTERISTI CS Dominance: ecommerce, cloud computing, streaming media, other digital content Distinguishing factors: Amazon Prime, Prime music, Prime video, free 2 -day shipping/ 2 hour shipping, whole food benefits, deals on products all over the website, etc.

Internal Strengths o o o Cost leadership Efficiency Delivery networks Customer orientation Fulfillment centers

Cost Leadership o Strategic alliances o Market strategy o Product development

Identify/Assess driving forces for change o Operating with a sense of urgency o 3 distinguishable driving forces o accepting failures at the price of innovating/learning experience o Ex: fire phone o Working everyday like its your first day in business o Can’t become stagnant, especially with over 500, 000 employees o Giving customers what they want before they know they want it

Competitive Forces o Porter’s five forces of competitive framework o Three horizontal competition o Competition form substitutes o Competition from entrants o Competition from established rivals o Two vertical competition o Power of suppliers o Power of buyers

KEY SUCCESS FACTORS Small business approach Observes what sells well then introduces private labels to reach that market Push-out “Mom and Pop” stores Creates their own labels/brands Ex: Lily Parker, Stone & Beam, Amazon. Basics, etc.

SEARCH ENGINE OPTIMIZATIO N o Private label brands over named brands o Cheaper private brands over name brands

Competitive Advantage Agreement with party companies E-commerce abide by rules and services They can always be accessed Non brick-and-mortar

QUESTIONS FOR COMPETITORS 1. 2. 3. 4. 5. What can they do differently than Amazon? How can they apply cost and differntiation advantages? How can they appeal to customers in a better way? What imitation strategies can they implement? How will Amazon be ahead within one year?

1. 2. 3. 4. 5. POSSIBLE BIG MOVES Purchasing a delivery service Enter the fitness industry Acquire a dollar general Offer rental services Partnering with a furniture store

WALMART’S BIG MOVES o Has everything that a customer could ever need but except the online aspect that millennials want o decided to grow their online retail o increase online grocery selection to combat Amazon o expects grocery pickup to be available at 3, 100 stores in the U. S. by the end of 2020 o expects grocery delivery to be available in 1, 600 stores in 2020 -Expects an overall 35% increase in sales or an additional $5. 6 billion in revenue -Expects to be the biggest in online grocery in the world

e. Bay’s Big Moves 1. Price match guarantee • On over 50, 000 products in the U. S. 2. Guaranteed Delivery • Delivery within 3 days on 20 million online products 3. e. Bay Authenticate • Advancement in safe shopping Offering great prices and improving customer confidence has been a newfound want for e. Bay

Amazon: 2015 to 2018 Financial Statements

Income Statement

Balance Sheet

Statement of Cash Flows

How they compete?

CONCLUSIO N Amazon is a leader in many areas and aspects. As presented, Amazon stands head and shoulders above its competition. With the way online shopping is growing Amazon is expected to grow in its market share only more, while other large retailers are doing their best not to go bankrupt like Sears, Toys R Us, and more. Being an era of internet, it is essential to keep up with the change in today’s world, because if not constantly changing one can suffer losses or worse- become bankrupt and have to foresee liquidation.