E-Commerce: Analysis of Amazon

E-Commerce: Analysis of Amazon

Summary

Amazon, the world’s biggest e-commerce brand established by Jeff Bezos, was founded in Washington in 1994 and again in Delaware in 1996. Its website was launched for the first time in 1995. In addition to being a worldwide e-commerce brand, Amazon is also a prominent cloud player and is strengthening its position in the cloud business. Clients have always been at the center of Amazon’s corporate strategy, and this strategy has led the company to success. The E-commerce sector has become increasingly competitive, and Amazon has maintained its consumer focus in order to remain competitive. Moreover, the company has increased its involvement in innovation and research in order to give clients a better overall experience.

Amazon’s Vision, Mission, And Strategy

Customer Service

Amazon has worked hard to achieve its vision and mission objectives through improving customer service. The business offers a diverse range of things from which customers may choose, including apparel, books, music, cuisine, robots, and a movie database, among others (Lincoln & Andrew, 2018). Amazon restructured its online stores to cater to each customer’s choice by introducing the “your store service,” which has been crucial in easily offering services at affordable prices by leveraging economies of scale (Sadq et al., 2018). In addition, Amazon created the A9 ranking system, which gives customers an easier product search experience. Furthermore, the organization uses a large pool of reviews and ratings. The reviews are an important part of the Amazon purchasing experience. Through participative labor, they instill a shared approach to purchasing, resulting in a social group that provides end customers with a sense of belonging.

Ethical Standards Towards Customers and Employees

Additionally, Amazon uses ethical standards for its consumers and staff in order to fulfill its objective and mission. According to the first guiding guideline, “Employees must follow applicable laws, rules, and regulations at all times” (Williamson et al., 2022). Furthermore, the group opposes sexual harassment and discrimination. Amazon requires vendors to offer accurate product information to customers while also respecting the reviews and ratings of other sellers. Moreover, vendors should erase consumer data after transactions and prevent sending unwanted messages to customers. Amazon workers are also subject to conflict of interest, insider trading, bribery, and price-fixing standards. The organization offers a secure, healthy, and clean working environment (Williamson et al., 2022). Workers are responsible for ensuring such circumstances by adhering to the organization’s safety guidelines.

Amazons Competitive Advantage

Amazon has three main strategies which lead to competitive advantage firstly, cost-leadership, customer differentiation, and focus strategy. The first approach centers on providing products of the same quality at a lower price than the market. The second revolves around delivering more options than rivals, while the third one is targeted at niche clients by combining the two methods. In addition, Amazon’s values have a positive impact on competitive advantages. The company has two strong values: customer satisfaction and operational frugality (Jain, 2021). These two elements support Amazon’s operational strategy to obtain and maintain an effective competitive advantage while enhancing the performance of its staff and the business. Due to its cost-effective strategy of paying its staff a lower basic income than its rivals, it spends significantly more on company growth and branding with the money it saves.

The corporation, on the other hand, keeps its employees loyal by distributing company stock to them. By doing so, it hopes to signal to workers that when the firm benefits or earns a profit, the staff will also benefit or earn a profit through the shares. Amazon’s strategic objective is to target numerous categories using technology and information. It employs segregation, novelty, and expansion via alliances. It emphasizes increasing sales volume while reducing expenses internally. Amazon has created an organization that is more difficult to assault. If Amazon is successful, other e-commerce companies may follow suit in the future. Amazon’s ambition was to be the world’s largest bookshop, but it has now evolved into the world’s largest collection. It is the world’s first and most successful internet retailer.

Amazons Competitors

One company stands out above the others when it comes to e-commerce and online retail behemoths: Amazon. It is reasonable to wonder if Amazo