CASE STUDY ON AMAZONS PERFORMANCE IN E BUSINESS
Moreover, in the modern world, social media also dictates the course of public relations (Whiting & Williams 2013, p. The different forms of social media play collaborative roles in helping companies to market their products (Belk 2014, p. For instance, while blogs are essential in conveying detailed reports to users on the array of service packages and products on offer, Twitter accounts are instrumental for notifying followers of this new information (Tiago & Veríssimo 2014, p. Social media strategy is efficient in the generation of sales. Amazon. The extent of Amazon’s success is evident in the fact the company is the second leading employer in the US and ranks fourth in the global list of public companies ranked according to their valuation. The company thus closely follows Microsoft, Alphabet, and Apple in terms of value, thus validating e-business.
The company’s service area is not limited to specific regions and includes a worldwide market. Also, its chief products include Amazon Video, Amazon Prime, Amazon Kindle, Amazon Echo and Comixology. The company’s subsidiaries include Body Labs, Audible Inc. 2014, p. Moreover, effective leadership has been an indispensable internal driver for the company considering that Amazon has achieved diversification at unprecedented levels. As a result of this initiative, Amazon has been able to adequately respond to strategies used by its rivals. For instance, the company improved its impact in the brick-and-mortar retailing market by acquiring Whole Foods Market in 2017, a move that according to business analysts was understood to result from a desire to compete with users of traditional retail stores including Walmart (About Amazon).
As a result of its diversification, about 65% of American households are subscribers to Amazon Prime, one of the services offered by the company that has had a great impact on the market. The voice command device created by Amazon has the capacity to perform a wide array of tasks including checking the weather, researching one’s favorite sports team and playing songs. This innovation made significant profits for Amazon considering that the company sold in excess of 20 million units in 2017. Echo was a good example of the positive impacts of innovations for e-commerce companies. Also, Amazon has for years dedicated itself to providing exceptional customer service. Considering that e-business involves multiple significant challenges including finding the right products to sell, attracting the perfect customer and the need to generate targeted traffic, an above average customer policy is mandatory for success in online business (Chaffey 2015).
They have mastered the art of using social media to engage with clients and thus through customer feedback including their thoughts and experiences, improve their quality of customer care. This is in line with the use of social media channels such as Twitter and Facebook to engage with clients and respond to their complaints or requests for assistance (Vinerean et al. 2013, p. The exploitation of social media by Amazon has not only helped the company have a good customer service reputation but has also helped the company market itself widely to potential clients. One way social media helps companies market themselves is by facilitating the addressing of customer concerns timely. This rival has the advantage of owning numerous physical stores and having a strong internet infrastructure as well.
Also, there is a high presence of substitutes in the market in the name of brick-and-mortar stores including those of Walmart. Moreover, switching costs to other retailers are significantly low thus driving up the influence of rivalry in the market. Bargaining power of consumers(high)- Amazon’s customers are capable of accessing large volumes of information that are of high quality in the context of commodities dealt in by the company (Nagra & Gopal 2013). This external driver increases the capacity of consumers to exploit alternative options regarding the services enjoyed by Amazon. The company draws its immense impact on the market mainly because of its business strategy that focuses on three key elements-focus, differentiation, and leadership. This particular strategy is particularly productive considering that it has influenced shareholders in deriving value from the organization and has helped the company make massive profits.
Moreover, the company principally draws its competitive advantages from its ability to leverage Information Technology and its application of e-Commerce as a platform to get ahead of its rivals (Daly & Nataraajan 2015, p. Furthermore, the tech-giant enjoys easy recognition which has assisted it in venturing into newer markets which would otherwise be inaccessible to other rival organizations. Moreover, with the utilization of superior distribution and logistics systems, the organization has gained the capacity to attain improved customer satisfaction thus resulting in the company drawing competitive edge over its rivals. This would give the company substantial gains over its rivals in the online retailing business. Moreover, the company has the opportunity to improve the variety of products it offers to the market by stocking an increased quantity of products than it currently does thus reinforcing its hold on the market and generating better profits.
Also, another area of opportunity for Amazon includes the fact that it has the capacity to invest resources in the selling of commodities under its own brand instead of forwarding of commodities for third parties. This means that Amazon should dedicate itself to increasing the number of commodities under its own brand instead of the mere stocking and selling of commodities by its the companies it partners with. Moreover, the introduction of its online remuneration system gives the company the opportunity to improve its performance and profits because it will have solved some primary concerns regarding online shopping which include concerns to do with privacy and security. Aral, S. , Dellarocas, C. and Godes, D. Introduction to the special issue—social media and business transformation: a framework for research.
Information Systems Research, 24(1), pp. Pearson Education Limited. Clemes, M. D. , Gan, C. and Zhang, J. Janita, I. and Chong, W. K. Barriers of b2b e-business adoption in Indonesian SMEs: A Literature Analysis. Procedia Computer Science, 17, pp. Springer, Boston, MA. Floyd, K. , Freling, R. , Alhoqail, S. , Cho, H. International Journal of Advanced Research in Computer and Communication Engineering, 2(6). Popa, S. and Soto-Acosta, P. , 2015, April. Factors Affecting e-Business use and its Effect on Innovation and Firm Performance in Manufacturing SMEs. Coopetition-based business models: The case of Amazon. com. Industrial Marketing Management, 43(2), pp. Tiago, M. T. , King, D. , Lee, J. K. , Liang, T. P. Vinerean, S. , Cetina, I. , Dumitrescu, L. and Tichindelean, M. The effects of social media marketing on online consumer behavior.
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