Amazon - Final Report
Amazon - Final Report
Understand the
industry dynamics
Amazons
consolidated sales
have been
increasing for the
past six years, mainly
because of
Electronics and
Services segment.
WEAKNESS/OPPORT.
Work towards
achieving greater
economy of scale to
counter the
consequences of low
profit margins.
STRENGHT/THREATS
Expanding focus to
counter the risk of
competitors also
following on the cost
leadership strategy
Take steps in improving
brand awareness about
the Amazon Web
services and its
applications
WEAKNESS/THREATS
Evaluate more on
partnering to provide
similar experiences of a
physical store and be at
par with the competitors
Political
- International policies &
regulations
- Trade protection
- Faster and more
affordable internet
Legal
- International laws
(country & products)
- Tax issues
- Property rights
- Liabilities & management
Economic
- Currency fluctuation
- Purchasing power due
to crisis
- Increasing sales in
emerging market
PESTEL Analysis
Environment
- Pressure to reduce
unnecessary packages
- Optimized delivery
system
Social
- Restriction based on
religiousðic
- Purchasing
preferences
- Social network
booming
Technological
- Increasing internet access
- Virtualizations
- Diversity of devices
- Development of cloud
computing
I
N
Increasing
bases of
sustainable
competitive
advantage
High
Technology
Low Technology
Amazon.com
WalMart
eBay
Revenue : 68 M$
Growth : 31%
Gross margin : 1,8
M$
Low Price
Amazon Web
Services
Microsoft
Low Innovation
Revenue : 3.8 M$
Virustream
IBM
High
Innovation
Fujitsu
Google
HP
Growth : 40%
Gross margin : 80%
New competitive
positioning, with highmargin activities
Low Level of
Execution
What do we recommend?
Improve
Avoid practices which
can jeopardize its brand
Questions?