pORTER'S FIVE FORCES
Introduction
In the early 1990s, the Venture Capitalists and Banks reviewed business models of books, CDs, electrical appliance retailers which were majorly confined to brick and mortar stores and simple operations. But they would be surprised to view the business model of Amazon.com Inc, which has used the internet to gain competitive strategic advantage and personify most of innovation metaphors.
This analysis of Amazon.com Inc has Porter’s five forces model, which consist of Supplier’s Power, Customer’s Power, Threat of New Entrants, Threat of Substitutes and Degree of Rivalry, respectively, being conscientiously used in respect to our chosen company, to determine whether Amazon has benefitted in terms of competitive advantage by its different-than-others business model, or has it not.
The rest of this research answer is organized as follows: first we shall look at why we chose Amazon, and then we shall study the five forces given in the same progressive order as above. This is finalized by our conclusion, where the research answer is stated clearly.
Why Amazon
Being one of the largest online retail companies in the world (Forbes), Amazon.com has clearly stated its position in the dominant market analogies. Emerging in the early 1990s (the era of .com boom) the firm was one of its own kinds of innovation. The firm sells everything from books, DVDs to kitchen appliances and jewellery. The firm 's other operations are: providing content production and computing services to various firms.
So, all this was basic data about the company which looks great on paper, but the quality in Amazon which led us to choose it as our company was persistence towards transforming. To survive and grow in today’s complex business world where words like stability don’t matter anymore, you need to change and transform constantly according to situation and time, which Amazon has done very nicely.
First of all, it survived through the dot com
In the early 1990s, the Venture Capitalists and Banks reviewed business models of books, CDs, electrical appliance retailers which were majorly confined to brick and mortar stores and simple operations. But they would be surprised to view the business model of Amazon.com Inc, which has used the internet to gain competitive strategic advantage and personify most of innovation metaphors.
This analysis of Amazon.com Inc has Porter’s five forces model, which consist of Supplier’s Power, Customer’s Power, Threat of New Entrants, Threat of Substitutes and Degree of Rivalry, respectively, being conscientiously used in respect to our chosen company, to determine whether Amazon has benefitted in terms of competitive advantage by its different-than-others business model, or has it not.
The rest of this research answer is organized as follows: first we shall look at why we chose Amazon, and then we shall study the five forces given in the same progressive order as above. This is finalized by our conclusion, where the research answer is stated clearly.
Why Amazon
Being one of the largest online retail companies in the world (Forbes), Amazon.com has clearly stated its position in the dominant market analogies. Emerging in the early 1990s (the era of .com boom) the firm was one of its own kinds of innovation. The firm sells everything from books, DVDs to kitchen appliances and jewellery. The firm 's other operations are: providing content production and computing services to various firms.
So, all this was basic data about the company which looks great on paper, but the quality in Amazon which led us to choose it as our company was persistence towards transforming. To survive and grow in today’s complex business world where words like stability don’t matter anymore, you need to change and transform constantly according to situation and time, which Amazon has done very nicely.
First of all, it survived through the dot com
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