Explain bargaining power of buyers or customers

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Reference no: EM131405836

Assignment

Proposal

In our business paper, we are going to talk about the world leading online industry "Amazon company."

Amazon provide high efficiency online shopping experience to customers as well as great customer service experience for the customers. Amazon's prime membership can receive access to books, movies, online readers etc. benefits. This attracts many amazon users. Discussing about Amazon, our paper will come from the perspective of showing an overview of the competitive landscape of the industry. Our paper will focus on the value of Amazon and how Amazon's leadership satisfy customer's need in order to standout in the competitive market. Amazon holds the leadership value of: Customer Obsession, Ownership, Invent and simplify, be curious, Earn Trust, Think big, frugality, bias for action. We are going to discuss each of those in our final paper.

Amazon.com Inc. is the leading company of online retail industry. In order to keep its leading position for a long term, Amazon must regularly evaluate the external factors in the online retail industry environment. In this proposal, we are going to analysis the intensities of the external factors affecting Amazon, based on Porter's Five Forces Analysis model:

1. Competitive rivalry or competition
2. Bargaining power of buyers or customers
3. Bargaining power of suppliers
4. Threat of substitutes or substitution
5. Threat of new entrants or new entry

Amazon company holds a strong position in the field of globalizing internet market. Amazon has the potential of compete over store such as Nordstrom, Saks fifth Avenue. We are going to discuss the reasons that Amazon company has such high marketing performance in our paper. Amazon company marketing performance: technological innovation. Kindle is a reading tool that indicate amazon company's marketing performance which is provide consumers with better buying and reading experience.

Innovation is the core strategy of Amazon, Amazon has always been a pioneer in new areas of self-view, and the Internet for its pioneering and innovation provides infinite space. For Amazon, continuous development and innovation, the sole purpose is to provide consumers with better services to help consumers better finish the shopping process.

Amazon started to retail, hardware manufacturing is not its strengths, but over the years it has invested in technology research and development of hundreds of millions of dollars. The face of e-books such a foreground of the market, Amazon realized that the biggest barriers to entry there are two, one is that people's traditional reading habits.

1. For the public, reading a paper book is not only a habit, it can even be said to be a way of life.

2. For consumers to accept the new way of reading, it must respect its original habits, based on the creation of a better reading experience. Second, although the market has some electronic reader, but there are a variety of shortcomings, cannot meet the needs of consumers. Last year, they provided new way to sipping items which is unmanned plane in UK. It is only take 30mins receive your order after you place an order online.

Amazon maintains its multi-level e-commerce strategy. Amazon focus on the central idea of relationships between itself and its customers. Amazon creates a platform basis for business to make transactions which both satisfies the customer and third party merchandise. Also Amazon has a multi-leveled e-commerce strategy. Amazon.com lets almost anyone sell almost anything using its platform. It is very convenient that people can find straight sales of merchandise sold directly by Amazon.

We will include how Amazon influences our lives as customers. Amazon make our life easier and give us more options because "You can find used goods, refurbished goods and auctions." (Amazon) In addition to the affiliate program that lets anybody post Amazon links earn a commission on click-through sales, there's now a program that lets those affiliates (Amazon calls them "associates") build entire Web sites based on Amazon's platform. However, they can create mini Amazon Web sites if they want to, building on Amazon's huge database of products and applications for their own purposes. When any purchases go through Amazon, you can build a site called Amazonish.com, include in the products directly from Amazon's services, write your own guides and earn a cut of any sales. Now, Amazon has become a software developer's playground to expand its potential.

Amazon has the special highlight on its customer service, this is another component that stands amazon's position. As a worldwide online based system store, customer's only way to communicate is responsible customer services agent. By providing a careful customer service, amazon wins' customer's mind. Thus, we are going to expand and talks about this in our paper.

1. Amazon is a low-cost retailer and offers a wide range of products and services.

2. The company's management team works to compete healthily and sustain its competitive advantages over a long time.

3. Amazon's market strategy is providing customer affordable price along its wide selection of products and convenience.

4. The customer experience is still getting enhance steadily by feedback.

Overall, our business paper should cover the multi-perspective of operations strategies of Amazon company and conclude on the strong and weakness of this company compares to other substitutes.

Citation:

"All About Amazon.com Corporation." AMIBA. N.p., 03 Feb. 2017. Web. 05 Feb. 2017.

"Amazon." Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & more. N.p., n.d. Web. 05 Feb. 2017.

"Amazon's global career site." Amazon.jobs. N.p., n.d. Web. 06 Feb. 2017.

"Help & Customer Service." Amazon.com Help. N.p., n.d. Web. 07 Feb. 2017.

Http://www.howstuffworks.com/about-author.htm. "How Amazon Works." HowStuffWorks. N.p., 25 Jan. 2006. Web. 07 Feb. 2017.

"Our Leadership Principles." About Amazon - Working at Amazon - Our Leadership Principles. N.p., n.d. Web. 07 Feb. 2017.

Swartz, Jon. "Amazon is creating 100,000 U.S. jobs, but at what cost?" USA Today. Gannett Satellite Information Network, 15 Jan. 2017. Web. 07 Feb. 2017.

Reference no: EM131405836

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