Introduction

Amazon.com Inc. interacts with a diverse spectrum of businesses, include small online shops and
large organizations such as Walmart. Jeff Bezos founded the company in 1994 in the United States of
America in Seattle and launched it online in 1995. Because of its global reach in the e-commerce market,
Amazon is susceptible to a range of exogenous factors. The firm must ensure its resilience in the face of
shifting circumstances in the online retail sector. Amazon, the market leader, competes with Apple Inc.,
eBay, and Alibaba Group, to name a few, and other retail, online, consumer devices, and video
production companies (Jurevicius, 2020). Amazon, the market leader, competes with Apple Inc., eBay,
and Alibaba Group, retail, internet, consumer electronics, and video entertainment companies (Jurevicius,
2020).

In respect to Porter's Five Forces Analysis model, the following external variables have the most impact
on Amazon (CMGA, 2013). Amazon.com Inc. faces little competition from new entrants due to low-cost
switching and significant economies of scale that contribute to the strength of its e-commerce business
(Adamkasi, 2017). Nevertheless, Amazon focuses on customer satisfaction and the satisfaction of its
customers (Adamkasi, 2017).  
The goal is to prioritize the needs of the customers and try to supply alternatives to them. In 1999,
Amazon made a large investment and constructed a new distribution facility, realizing that company
practices would need to improve or change in order to thrive. Amazon's competitive edge in the numerous
markets into which the corporation is growing is not uniform. Amazon has had success in some markets
while failing in others. The launch of AWS in 2000, was an excellent example of creating an internal
system to assist the infrastructure in meeting the needs of compute and database storage(Luckerson,
2014). In cloud computing and ecommerce, the corporation has very few competitors who can compete
with it, allowing it to maintain a competitive advantage. Technology has been included into all of the
company's strategic initiatives. The Firephone, as it was known, was unable to compete with the iPhone
or Android and was so cancelled (Luckerson, 2014).
In the Amazon warehouse, there are around 45,000 robots that aid in production, packing, and
storage. The company attempted to enter the travel industry with its website Destinations, but was shut
down because it lacked a competitive advantage in the market (Luckerson, 2014). The company has been
acknowledged to deliver a large stride and progress in enabling a vast process for the producing phases.
The location of where the product or service will be delivered to the client is referred to as place.
Amazon Web Services is the primary source of their present profit, although third-party sellers are also a
substantial source of profit. Company have grown to a large customer base and sell practically everything
from books to electronics, digital content, chemicals, and lingerie (Davis, 2018). Amazon is incredibly
price competitive and provides fantastic specials, as well as subscription model and member benefits
(Amazon.com, 2014). Amazon has built a positive reputation, making it a location where people feel safe
making purchases (Bhasin, & Piyush,2019).

The success of Amazon lies in their hands, maintaining a big SKU allows them to endure some
loss in one product and recover it in another, increasing the challenges in managing a product-based
producing strategy. They sell consumer devices, including the well-known Echo (Amazon.com, 2014).
Amazon invented eCommerce, cloud services, introduced products like Alexa, and pioneered the market
for IoT devices. The inclusion of technology and e-commerce has greatly increased its appeal and
security, ensuring that it will be profitable for a lengthy moment (Laudon, 2007). The  innovations has
helped them to be at the forefront, Amazon is the creator of the online retail industry, transitioning from a
bookstore to a multi-billion-dollar enterprise with the core belief of listening to customers and enhancing
the mission.

REFERENCES

Adamkasi. (2017, June 20). Porter’s Five Forces Analysis of Amazon|Porter Analysis. Porter

Analysis. https://www.porteranalysis.com/porters-five-forces-analysis-of-amazon/

Amazon.com. (2014). Amazon.com. https://www.amazon.com/.

Bhasin, H., & Piyush. (2019, January 26). Marketing mix of Amazon - Amazon marketing mix.

Marketing91. https://www.marketing91.com/marketing-mix-amazon/
CMGA. (2013, June 11). Porter’s Five Forces of Competitive Position Analysis . CGMA.
https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html

Davis, H. (2018, January 10). Marketing Mix Amazon com Inc. Essay48. https://www.essay48.com/term-
paper/4770-Amazon-com-Inc-Marketing-Mix

Laudon, K. C. (2007). Management information systems: Managing the digital firm. Pearson Education,
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Luckerson, V. (2014, October 24). 4 Reasons Amazon’s Fire Phone Was a Flop. Time.
https://time.com/3536969/amazon-fire-phone-bust/

Ovidijus Jurevicius. (2020, January 8). Apple SWOT Analysis (5 Key Strengths in 2018). SM

Insight; SM Insight. https://strategicmanagementinsight.com/swot-analyses/apple-swot-analysis.html