Question

A detailed Competitor analysis on Amazon. Be sure to provide a narrative to explain the findings from the analysis.

Answer 1

Amazon:

• Firm infrastructure: Amazon’s infrastructure is cost effective, central customer data etc. infrastructure also includes accounting, legal, finance, planning, public affairs, government, general management etc.
• HRM: employees get unique job benefits, there are warehouses located in less expensive locations & availability of highly skilled workers.
• Technology: the company has good connection to technology, high R&D, open source software, largest servers etc.
• Procurement: procurement of Amazon is such that with highly centralized, high accessibility & also good order speed.

Primary activities:

• Inbound logistics: there are good logistics with accurate forecasting, reduced returns.
• Operations: there are 24 hour warehouse operations with fast & secure payments.
• Outbound logistics: outbound logistics of Amazon is such that with close proximity, aggregate orders, local focus etc.
• Sales & marketing: good marketing strategies like discounts, free delivery, and product mix etc.
• Services: very good services that includes free returns, comparison of prices, usage of customer base.

Amazon’s power of substitutes is high, with medium bargaining power of suppliers, high rivalry, high bargaining power of customers & weak barriers to entry.

Some of Amazon’s competitive advantages from value chain perspective would include the following:

• Strong technological infrastructure with a single platform.
• High investments in technological development like kindle to leverage the digital products.
• Good forecasting system for products.
• Print on demand.
• Constant soliciting suggestions on new products.
• Easy & fast system of payments.
• 24/7 operations.
• Free return facilities within 30 days.
• findings from the analysis is that amazon seem to have good competitive advantages to compete equally with its other rivals like walmart. but if we analyze even the competitive advantages of walmart, both look almost one & the same which establishes a tough competition between both retail giants.