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Amazon was a pioneer in online retail when it launched as an online bookstore. It established strong customer relationships and strategic partnerships with other internet companies. Amazon strengthened its management team with external expertise and continuously innovated its information technology. As the first mover in its industry, Amazon built a technology platform and brand loyalty before competitors like Barnes & Noble entered the online market. It maintained competitive advantages through global expansion, product diversification, strategic acquisitions, affordable prices, and customer-focused innovations.

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2K views11 pages

Presentation

Amazon was a pioneer in online retail when it launched as an online bookstore. It established strong customer relationships and strategic partnerships with other internet companies. Amazon strengthened its management team with external expertise and continuously innovated its information technology. As the first mover in its industry, Amazon built a technology platform and brand loyalty before competitors like Barnes & Noble entered the online market. It maintained competitive advantages through global expansion, product diversification, strategic acquisitions, affordable prices, and customer-focused innovations.

Uploaded by

andrew_inas
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Key aspects in Amazon’s

external environment
 First mover/pioneer in the dotcom
industry
Customer relationship management
Strategic alliances or collaborations
with other internet players
Information Technology
Continuous strengthening of the
Management Team with external
expertise
Company strategy and competitive
advantage
 The Five Forces Model (M. Porter)

 Threat of new entrants:


 Amazon was the first retail online bookstore
 No significant rivals at the time despite Barnes
and Noble having 14% share of traditional
retail bookstores, but no online presence
Threats of new entrants
 Built unique software technology to
drive delivery of products and
services
 No need to invest in a chain of high
street bookstores
Threat of Substitution
 No real competition until February 1997
when Barnes and Noble went online
supporting 431 superstores
 As a first mover into the industry
Amazon had already invested a lot in
technology
 Already a brand. Customer loyalty and
commitment
Bargaining power of suppliers
 Amazon established a relationship
with a book wholesale and shippers
in Seattle
 Promotional relationships with
emerging internet players
Bargaining powers of buyers
 CRM. Information recorded on customer
buyer behaviour leading to provision of
individual specific items
 Items/products delivered to customers
at no or relatively low cost
 Provide 24 hour service to customers.
 Quick and efficient search capability
(resulting from collaboration with big
internet search engines)
Competitive Rivalry
 Diversification of products as
business grows; Amazon became
‘everything to everybody’
 Continuous technological innovation
and partnership e.g. with British
Library for antique books
 Globalisation of business; opened
websites in France, Japan, Canada
and other big markets
Rivalry continued
 Development of key competencies in
technology development, computer
science and software
 Strategic investments and even
acquisitions of companies that offered
developed technology, products,
services that fit its existing business
model
 Affordable prices to its customers
Conclusion
The success of Amazon.com is a result
of the following key factors:
 A strong, focus, ambitious, visionary and

stable leadership.
 Its relentless initiatives in expanding the

business to different locations


 Technological innovation and development
Conclusion continued
 Customer driven innovations and
improvements e.g. ability to buy
anything from Amazon with a capital
‘A’
 Strategic collaborations
 This is a class presentation work
presented by Enenche, Julia et al.
2009

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