Amazon Case Analysis

The case epitome Outline Introduction- Brief summary of the firm, officers, industry and jam Problem identification major problems to be resolved-use the 4ps model Swot analytic thinking strengths weakness opportunities threats Alternatives strategic choices-solutions to the problems identified Analysis of alternatives salute/benefit analysis of the solutions. Recommendation best/optimal solution based on the cost/benefit analysis 1. Introduction Amazon began in 1994 created by Jeffrey Bezos a computer science and electrical engineering graduate from Princeton University.Amazon was created to be an online watchwordstore that would be customer friendly, be easy to navigate, provide buying advice, and passing play the broadcast possible selection of throws at slump prices and submit yield polish ups. Bezo operated from his garage in Seattle. Bezo launched his online venture in 1995 with 7 million in borrowed capital. Because Amazon was one of the showtime major Internet or disseminate com retailers, it received a huge amount of free national publicity, and the bare-ass venture quickly attracted more and more book buyers. Amazon has a 200,000-square-foot warehouse and scattering center.Amazon employed a relatively small chassis of workers about 2500 worldwide. Amzon employees own over 10% of their comp all, a factor fucking Amazon. coms rapid growth. Amazon has pizza teams that are given great autonomy to develop their ideas and experiment without interference from managers. Those pizza teams come up with most of the innovation. 2. Problem identification Product- Amazon has a customer review section on its website so that a customer may boast any problems that he or she has sustain with the Amazon product purchased. still maintaining the physical infrastructure to to obtain supplies of books from book publishers and then to stock, package and send off the books to customers were much higher than anticipated. Price- Amazon was at a competitive prefer with their low prices * Maintaining the physical side of viragos value grasp was the source of the greatest proportion of its operating cost, which were draining profitability change surface though Amazon was at a competitive advantage with their low prices. *Price competition was also heating up due to the some other companies such as Barnes and Noble and Borders who were also selling books online. Place- Amazon specify in the book selling market changed the industry forever since it was the origin online book selling company. * People can purchase books from anyplace as long as they can use the internet. Promotion-Since Amazon was the first online book seller it received a lot of free publicity. * Amazon was adapted to capture customers attention and establish a first mover advantage. 3. SWOT Analysis Strengths- -First online Book selling website. -low pricing -purchase from anywhere -offers 1. 5 million books -product reviews * Weaknesses -operating costs * Oppurtu nities -Global expansion -retailer -aquiring small companies -New software -Branching in new market segments * Threats -opposing companies -price wars Pressure on profit margins 4. Alternatives * Forging associate with other companies so that when customers wanted a purchase immediately they could weft it up from one of the alliance retailers such as office storage or circuit city. Continue being innovative with prices such as having buy one get one half off gross sales or reducing prices by certain percentages on particular days. 5. Analysis of Alternatives * Buy sharing profit with allies the high product stocking and distribution costs were avoided. * Profit sharing also turned the company from book seller to leading internet product provider. 6. Recommendation Allow any small business that operate a website to become affiliated to amazon by putting a official Amazon hyperlink to Amazons website on its own website.