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Competitive and Industry Analysis

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Presentation on theme: "Competitive and Industry Analysis"— Presentation transcript:

1 Competitive and Industry Analysis
Amazon Competitive and Industry Analysis Patricia Martinez, Bryan Arias, Shavena Smith

2 Introduction The face of the e-commerce phenomenon
Sells diverse products Sustains competitive advantage and superiority among competitors by specializing and providing what others cannot

3 Background One of the first large companies over the internet
Originally, was only an online bookstore but they were going to lose business to Barnes & Noble if they did not become diverse with their products Mission Statement: “We strive to offer our customers the lowest prices, the best available selection, and the utmost convenience”

4 Chief Business and economic characteristics
Dominance: e-commerce, cloud computing, streaming media, other digital content Distinguishing factors: Amazon Prime, Prime music, Prime video, free 2- day shipping/ 2 hour shipping, whole food benefits, deals on products all over the website, etc. Chief Business and economic characteristics

5 Internal Strengths Cost leadership Efficiency Delivery networks
Customer orientation Fulfillment centers

6 Cost Leadership Strategic alliances Market strategy
Product development

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8 Identify/Assess driving forces for change
Operating with a sense of urgency 3 distinguishable driving forces accepting failures at the price of innovating/learning experience Ex: fire phone Working everyday like its your first day in business Can’t become stagnant, especially with over 500,000 employees Giving customers what they want before they know they want it

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10 Competitive Forces Porter’s five forces of competitive framework
Three horizontal competition Competition form substitutes Competition from entrants Competition from established rivals Two vertical competition Power of suppliers Power of buyers

11 Key success factors Small business approach
Observes what sells well then introduces private labels to reach that market Push-out “Mom and Pop” stores Creates their own labels/brands Ex: Lily Parker, Stone & Beam, AmazonBasics, etc.

12 Search engine optimization
Private label brands over named brands Cheaper private brands over name brands

13 Competitive Advantage
Agreement with party companies abide by rules and services E-commerce They can always be accessed Non brick-and-mortar

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15 Questions for competitors
What can they do differently than Amazon? How can they apply cost and differntiation advantages? How can they appeal to customers in a better way? What imitation strategies can they implement? How will Amazon be ahead within one year?

16 Possible big moves Purchasing a delivery service
Enter the fitness industry Acquire a dollar general Offer rental services Partnering with a furniture store

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18 Walmart’s big moves Has everything that a customer could ever need but except the online aspect that millennials want decided to grow their online retail increase online grocery selection to combat Amazon expects grocery pickup to be available at 3,100 stores in the U.S. by the end of 2020 expects grocery delivery to be available in 1,600 stores in 2020 -Expects an overall 35% increase in sales or an additional $5.6 billion in revenue -Expects to be the biggest in online grocery in the world

19 eBay’s Big Moves Price match guarantee
On over 50,000 products in the U.S. Guaranteed Delivery Delivery within 3 days on 20million online products eBay Authenticate Advancement in safe shopping Offering great prices and improving customer confidence has been a newfound want for eBay

20 Amazon: 2015 to 2018 Financial Statements

21 Income Statement

22 Balance Sheet

23 Statement of Cash Flows

24 How they compete?

25 Conclusion Amazon is a leader in many areas and aspects. As presented, Amazon stands head and shoulders above its competition. With the way online shopping is growing Amazon is expected to grow in its market share only more, while other large retailers are doing their best not to go bankrupt like Sears, Toys R Us, and more. Being an era of internet, it is essential to keep up with the change in today’s world, because if not constantly changing one can suffer losses or worse- become bankrupt and have to foresee liquidation.


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