CASE ANALYSIS: REINVENTING ECOMMERCE: AMAZON'S BET ON UNMANNED VEHICLE DELIVERY Case Solution
Introduction
Amazon is a worldwide and well known company, which was founded by Jeff Bezos in 1995. The company started its operations as an online book seller and took advantage of the emerging and growing e-commerce and online shopping trend. The company is an American based company and currently it is offering online solution for almost everything ranging from books to daily required groceries. The company’s major focus was revenue and customer growth instead of profits and the company is still working on the same approach. Moreover,the company has grown its business from online book selling to a logistic, hardware and cloud computing solution. In addition, the company has also developed its hardware which is known as the Amazon kindle, which is a tablet computer. The company also offers an annual subscription through which customers can easily shop online and get the deliveries of those items easily by paying an annual subscription fee of only 73$.
The company also offers logistics services and it made many warehouses,which are near airports and densely populated areas in order to ensure fast and safe deliveries of products. Furthermore, the company’s logistics partners are also big players in the industry as the company uses transportation service of FedEx and UPS. The company has competitive advantage over its rivals as it was the first company to offer click and brick services. The major competitors of the company are Apple, Google and e-bay.
The company grew its business by following the acquisition strategy as it acquired many key players of the market in order to expand its product range and market visibility. The company firstly acquiredZappos, a huge online shoe retailer; afterwards the company also acquired many retailers and online product providers in order to broaden its range of products as well as to increase its growth.
In addition, e-bay used many tactics in order to compete with amazon however, itfailed because of the high market visibility, brand recognition and service quality of the company. Moreover, the company’s main competitive advantage is that the company provides same goods as the retailers with physical locations are offering at low price and delivering them directly to the customers.
E-bay also launched its retail locations and offered low prices in order to compete with Amazon however, it failed again because of the defensive strategy of Amazon, as Amazon introduced an application from where the customers can order the goods from their mobile which were similar to the good which E-bay was offering. People started to view those goods physically at E-bay’s stores and then ordered them to Amazon. This case was took place primarily with Furniture and Fixtures.
Moreover, Apple was also threatening Amazon by innovating and launching its iPad Tablet and to enter in the entirely new market of table computers, in order to counter this Amazon also entered in the same market and launched its own tablet computer known as Kindle. Through this Amazon secured its position and also increased its customers. The reason behind entering an entirely new market was to compete with Apple and to gain quantum profits and revenues.
Problem Statement
Amazon is a well-known organization which is working in the market for almost two decades; the company is working well and earning billions in revenues. Its market visibility is high enough and it is also a well reputed and trusted brand. Customers see this company as a trusted partner as the company promises to keep their data safe and confidential. The company also ensures to give the best services and to give the best experience to customers while shopping online or taking the product’s delivery. The company also uses the customers’ data to integrate with them, get feedback from them and to identify problems and to take possible actions...............
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