Amazon is the leading online supplier in most of the world. The reason being it has capitalized on the needs of the customers. Listening to the market and providing what it needs has put the company among the world’s top companies. With its competitive advantage and rapid growth, the company could become the world’s greatest online supplier. This paper will analyze what the company has to do to bec Amazon’s market greatest online supplier globally?

Introduction

Amazon company is one of the top-performing companies and a leader in the industry. Jeff Bezos founded the company in 1994. The company was founded in Bellevue, Washington, in the U.S. Currently, its headquarters are in Seattle, Washington, in the U.S. The company is a multinational technology company that deals with e-commerce, cloud computing, artificial intelligence, and digital streaming. Currently, the company is among the best performing industries globally, and the reason for success is the four principles that guide the company. The principles are long-term thinking, passion for invention, commitment to operational excellence, and customer obsession rather than dwelling on competition (Amazon par 1). These principles have guided the company to more expansion and growth despite competition from other companies such as Walmart and Alibaba.

The reason Amazon’s market has been rapid is due to the three advantages it has over the other companies. The reasons are a sustainable competitive advantage, the best leadership, and big new revenue streams due to its bets on growth. In this paper, we shall ascertain the measure and efforts put in place to ensure Amazon is the greatest online supplier in the world.

Research Question

Will Amazon’s market growth make it the biggest online supplier in the world?

Methods

The method to ascertain Amazon’s growth will be to analyze its advantages; that is what makes it different from the other companies that promote its market growth. The other tool to investigate is the SWOT analysis. This will shed more light on the company’s strengths and opportunities to expand more while pointing out the company’s weaknesses and threats in its market growth. Additionally, the PEST analysis will investigate the external environment surrounding Amazon that may increase its competitive advantage and market growth.

Results and Findings

The Three Advantages Amazon Has Over Other Companies

As stated earlier, the three advantages Amazon has over its rivals are a sustainable competitive advantage, best leadership, and revenue streams.

Sustainable Competitive Advantage

The competitiveness of any company is measure by how it leads to the market share. For any company to gain a competitive advantage, all that matters are the customers. Amazon has invested in customer satisfaction since it the criteria by which consumer rank suppliers (Cohen par 8). The company has invested in customer purchase criteria where the price is checked to be friendly, fast delivery, and reliable. Customers have chosen Amazon over the others due to these services. When it comes to customers, they must be able to shop at one stop without moving around, making their shopping experience worthy. Amazon has ensured this by offering a variety of products and services to its customers. Any other company can replicate the services stated above, and therefore sustaining superiority is essential. Amazon started with books and is the leading still in the industry despite other companies coming up. As it has grown and expanded its services and products and stayed at the top gives it a competitive advantage over the others.

Best Leader or Founder

The competitive advantage does not just happen; it has to be created. For Amazon, CEO Jeff Bezos has a company based on principles that enabled it to have a competitive advantage due to its focus on the customers and growth (Cohen par 9). The leaders ensure the company follows the disciplined growth strategies that ensure it has a competitive advantage.

Growth to Create Big New Streams of Revenue

When one is a leader, he/she has to put the bets on growth that will create more revenue in the short-term or the future. Jeff Bezos, the founder of Amazon, has placed his bets on growth, expanding its products and services. Apart from that, the company has gone international delivering goods and services to people worldwide. The online supply store has become a one-stop shopping place where customers can shop for all their items in their homes (Cohen par 10). Some of the expansions have achieved their results in a short time, while others are prospects. All the streams of revenue have made the company become one of the renowned companies in the world. Apart from that, the company expansion is done in customers’ interest; therefore, more customers remain loyal to the company adding to its competitive advantage.

SWOT Analysis

Strengths	Opportunities
· Strong brand name · Differentiation and innovation · Cost leadership · Diversification · Market leadership	· Penetrating developing markets · Partnering with other entities in developing markets · Chance to create physical stores
Weaknesses	Threats
· its business can be imitated · challenges in penetrating developing markets · lack of physical stores	· Imitation of products and services · Cybercrimes · Competition

Strengths

Amazon has a strong brand name, which has made grow more rapidly due to recognition. Apart from that, their diversification into other product apart from books have made it popular among customers. The company has also developed innovative ways to ensure first delivery and customer services (Greenspan par 3). Since they only sell online, they have cost leadership since they do not have offices to maintain. Apart from that, the company has been a market leader for a long time, which is advantageous.

Weaknesses

Amazons business is not so unique, and therefore other upcoming or established companies can copy or imitate their business model. Developing markets are good for Amazon due to rapid growth. Still, the company’s weakness has been to penetrate the markets. Finally, Amazon company lacks physical stores where people can visit to purchase items since everything is done online (Greenspan par 4).

Opportunities

With the developing market, the company can tap into those opportunities and make revenue from them. The company can build physical stores where customers can enter and purchase items or receive services they need, giving them a competitive advantage. With the developing markets, the company can partner with firms to easily access the markets (Greenspan par 5).

Threats

Competition is the major threat the companies face from other rivals entities such as Walmart and Alibaba. Cybercrime is also another threat since most of the business is done online. Finally, imitation of their business models, products, and services by rival companies may thin the competitive advantage (Greenspan par 6).

The PEST Analysis

The PEST analysis factors in the elements that influence the business to give it an advantage or disadvantage. The PEST analysis stands for political, economic, social, and technological factors. In the case of Amazon, these factors enable the company to expand its growth, making it a market share leader.

Political Factors

Amazon operates globally, and therefore there is political and legal regulation that it must abide by to operate. The company relies on the government for support for implementing the business models developed (Frue par 4). In all the countries the company expands to, it has to rely on the country’s political stability to ensure the business thrives. Therefore under political factors, stability is the key since the company is dependent on it.

Economic Factors

The company is dependent on the economy to be positive. When the economy is positive, competition becomes healthy since all the companies put more effort into ensuring they thrive in the flourishing economy (Frue par 5). Therefore as much as the company is dependent on economic positivity, so are the rivals.

Social Factors

The company has come under fire for promoting negative lifestyles since consumers can get their items brought home. Despite that, the company listens to the market, and that is what the people want. By doing exactly what the consumers want, the company has become recognized and attracting more consumers (Frue par 6).

Technological Factors

Amazon is looking for more technology to help them deliver their products and serves to the customer. Therefore the technological needs of the company are dependent on the customers’ demands. Therefore the company has to invest more in research and development to develop more reliable, fast, and economical technology to meet the demands of the customers (Frue par 7).

Analysis and Discussion

From the findings on the three advantages Amazon has over other companies, it is crucial to note that the company has identified customers as the base of the company’s success. The company’s struggle to achieve a competitive advantage is based on how the company treats its customers. The sustainable competitive advantage, best leader, and revenue streams are all to fulfill the customers’ desires. In the bid to do that, the company has grown and expanded in almost all the countries globally, and with the trend of its activities, it will become the greatest online supplier in the world.

The SWOT analysis supports the discussion since it is evident the company’s strengths and opportunities have overcome the weaknesses and threats it faces. For example, over the years, the company has built a brand name known worldwide; this gives the company the chance to become the greatest supplier all over the world if it capitalizes on the brand names and the needs of the customers.

The PEST analysis further shows that the company can be the greatest supplier all over the world because, under political factors, the company only invests in countries that are stable politically and have necessary tax regulations. Economic factors, despite not favoring the company alone but all the other companies lay the foundation to a leveled playing field where the companies can compete fairly, considering Amazon has added advantage over its rivals. The social factors relate to the customers, and the company does what pleases the customers; therefore, more are attracted while the others remain loyal. Finally, technological factors are those that make customer service easy. The company has invested in research and development to ensure more innovative technology is developed that will meet the customers’ needs.

Conclusion and Recommendations

For the company to become the greatest online supplier globally, it has to capitalize on three things that give it an added advantage. First, its how it relates to the customer as this will attract more customers leading to more growth. Secondly is the brand name of the company. Considering the name is known worldwide, the company should use that to expand more into new markets and countries all over the world. Finally, it is a competitive advantage. Considering the company has a competitive advantage, it should use that for more growth.

Growth means the company will become a market leader; it will attract more customers and gain more market share. The growth will mean that all the consumers will like to be associated with the company and purchase it. Therefore attracting more customers worldwide will ensure the company is the greatest online supplier in the world.

Works Cited

Amazon. “About Amazon.” The US About Amazon, 24 July 2019, www.aboutamazon.com/our-company/about-amazon.

Cohan, Peter. “3 Reasons Amazon Is The World’s Best Business.” Forbes, 5 Feb., 2018, www.forbes.com/sites/petercohan/2018/02/02/3-reasons-amazon-is-the-worlds-best-business/#418f581f6356.

Frue, Kiesha. “PEST Analysis Of E-Retail Leader Amazon.” PESTLE Analysis, 29 May, 2018, pestleanalysis.com/pest-analysis-of-eretail-leader-amazon/.

Greenspan, Roberta. “Amazon.com Inc. SWOT Analysis & Recommendations.” Panmore Institute, 22 June 2019, panmore.com/amazon-com-inc-swot-analysis-recommendations.

Amazon’s Market Growth

Pssst… we can write an original essay just for you.

Executive Summary