Amazon Business Practices Essay

AbstractThis paper provides strategic research for virago.com, starting with the vision and mission statements and an orthogonal assessment of the matched forces using the Porter Five Forces model. Also included in this research is an evaluation of the intensive strategies used by virago in the areas of market sharpness, market and crop development. Additionally, a SWOT Analysis is provided with the recommended five-year corporate strategy.Strategic Research Project for Amazon.comAmazon. com, an internet merchandise selling giant founded by Jeff Bezos, opened its virtual doors to its online store in July 1995. The company was incorporated in 1994 in the state of Washington and reincorporated in 1996 in Delaware. The Companys track corporate offices are located in Seattle, Washington. Amazon.com completed its initial public offering in May 1997, and its common stock is listed on the Nasdaq Global get Market under the symbol AMZN. (Amazon.comFAQ) Mission and Vision StatementThe m ission/vision statement of the company is real simple and direct Our vision is to be earths most customer centric company to build a place where race can come to find and discover anything they big jobman want to buy online. However it still manages to meet many of the characteristics of an effective mission/vision statement (1)Customers, it intends to the most customer centric company on earth. (2)Product or services It is broad and no specific about any particular service or product. (3)Markets Amazon intends to build a place where people can find anything they want to buyonline. (4)It is very brief.The entire statement and vision is summed up in 2 sentences. Overall the company is accomplishing their mission and realizing their vision. Amazon is a global company and their name has become associated with online buying. Amazon.com, Inc. (Amazon.com) serves consumers through its retail Websites and focuses on selection, price, and convenience. The Companys four customer sets inc lude consumers, sellers, enterprises and content creators. It withal manufactures and sells Kindle devices. It offers programs, which enable sellers to sell their products on its Websites and their own branded Websites and to fulfill orders through it. (Amazon.comINC, 2012) Competitive AnalysisThe industry that Amazon competes in is very competitive and changes quickly. An external assessment of the competitive forces using the Porter Five Forces model looks at rivalry among the competitors, potential new competitors, potential substitute products and bargaining author for suppliers and consumers. (David, 2009).1.Competitors Amazon has branched in the world of tablets and is competing with Apple and Google, the Kindle is a direct competitor to Ipad. In the publishing and book world only Barnes and baronial is even comparable and Amazon is far more successful. In other areas Amazon is out performing its competitors like Walmart, Netflix also. (Amazon.comINC,2012)(Amazons Competiti ve Advantage, Growth Opportunities bear It A Buy, 2012)2.New competitors there are always new companies emerging in the internet retail business however Amazon has remained a giant and very profitable. (Amazons Competitive Advantage, Growth Opportunities Make It A Buy, 2012)3.Potential Substitute products innovation is the name of the game in the internet so Amazon always has the terror of the next best thing but they continue to be innovative as with their entry into the tablet world.4.Bargaining power with Suppliers and consumers Amazon is a relatively cut-price way for suppliers to offer their product as well as a convenient peerless stop shop for consumers. Intensive StrategiesMarket penetration, market and product development are commonly referred to as intensive strategies. They require intense efforts if a firm intends to improve its competitive edge with its products. (David, 2009). A market penetration strategy attempts to increase the market share of currentproducts. A mazon has a healthy balance sheet and is positioned to benefit from the continued shift in vocation from offline to online. Retail bankruptcies could continue to shift sales online. (Forbes.com 2012) A market development strategy involves introducing current products into new geographic areas. Amazon is experiencing growth in its international sales and is leveraged to two of the fastest growing platforms on the Internet, online search, and the Chinese e-Commerce market.A product development strategy seeks to increase sales by improving or changing present products. Amazon introduces Amazon Prime, a membership site for loyal customers that offers faster shipping of products and through a deal with Marshall Cavendish, one of the worlds leading book publishers and classroom digital solutions providers, Amazon has acquired over 450 titles of its US Childrens trade books business, a move that will go forth expansion into picture books, chapter books and Young Adult novels.SWOT Analys isStrengths, Weaknesses, Opportunities and Threats (SWOT) analysis, which provides information to analyze and evaluate the organizations strengths and weaknesses, is presented for Amazon.com. This is widely used as a strategy grammatical construction technique and to help in identifying the most beneficial targets and strategies to pursue. Strengths Brand recognition, an industry leader in online sales. Customers satisfaction, very loyal Diversified, large variety of products, profitable business model, offered in different geographical markets. Weaknesses Free shipping and all delivery is outsourced.Multiple competitors, Consumer demand can trigger losses in revenue. International markets and currency, meter to deliver versus a local bookstore Opportunities Expanding geographical markets, advances in technology, new products (the kindle), increased suppliers. Threats Competitors, the e-commerce field evolves rapidly and is highly competitive, companies such as EBay, Wal-Mart, Goo gle and Yahoo. wishing of inventory to meet demand, no control over suppliers and delivery services, weakened economies foreign and domestic. ConclusionDespite all of the constant competitors that Amazon faces for its current and futurity market share it continues to make a profit. With of constantevolution current business practices and continued innovation of new ones, Amazon should maintain its lead on its nearest competitors. I believe further expansion into international markets as well as more collaboration with other firms such as Microsoft to tell that its new innovations and products are main-stream, will continue to be profitable.ReferencesAmazons Competitive Advantage, Growth Opportunities Make It A Buy, (2012, 20 Jul) Seeking Alpha.com Retrieved from http//seekingalpha.com/article/735201-amazon-s-competitive-advantage-growth-opportunities-make-it-a-buy Amazon FAQs, Amazon.comRetrieved from http//phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-faq14296 Amazon.com INC , (2012, 04 Dec) New York Times OnlineRetrieved from http//topics.nytimes.com/top/news/business/companies/amazon_inc/index.html AMAZON.COM INC (NASDAQ AMZN) Buy/Hold/Sell Analysis, Forbes.com Retrieved from http//finapps.forbes.com/finapps/BuyHoldSellAnalysis.do?tkr=AMZN David, F. R. Strategic management concepts (12th ed.), 2009 Upper Saddle River, NJ Prentice Hall Johnson, Mark W (2010, 12 April) Amazons Smart Innovation Strategy, Bloomberg Businessweek Retrieved from http//www.businessweek.com/innovate/content/apr2010/id20100412_520351.htm Order It Online, And Voil, (2012, 3 December) Wall lane Journal Online Retrieved from http//online.wsj.com/article/SB10001424127887324712504578133602774225678.html?KEYWORDS=amazoncomarticleTabs%3DvideoSWOT Analysis of Amazon, (2010, 9 September) MBA LecturesRetrieved from http//mba-lectures.com/marketing/swot-analysis-marketing/1157/swot-analysis-of-amazon-com.html