Many people in the US love that they can order any product that is on the Amazon website and have it delivered as it is. Amazon is celebrated because of its extensive supply chain. In an attempt to ensure that people all over the world enjoy the services of Amazon, Amazon has expanded globally. It, however, faces challenges. This slide looks at how Amazon addresses its business challenges in expanding globally, combating rivals and Keeping up with E-commerce growth
Amazon History Was founded by Jeff Bezos in 1994 (Furgang, 2018). Amazon is the largest internet retailer in the whole world in terms of capitalization and market revenue. As of 2018, the internet retailer has close to over 400,000 employees that are either fulltime or part time based (Innovation masters: History’s best examples of business transformation. 2012).
Initially, Amazon started out as an online bookstore. It’s, however, diversified to include the sale of toys, videos, and mp3 streaming or downloadable content, jewelry, audiobooks, electronics, food, furniture, video games, software, and apparel (Lunenburg, 2012). The company as well offers services in cloud infrastructure. Amazon’s Products and Services
The company relies on its e-commerce platforms to make sales. Close to 99% of the sales of the amazon company are from online retailing. The company has websites for Ireland, Brazil, the US, China, Mexico, Germany, UK, Spain, France, Australia, Japan, Netherlands, India, and Canada. The company as well facilitates the shipping of its products to some other specific countries in the world that are not mentioned above
Initially, at the start of its operations, the amazon company employed the use of the business to customer relationship model. Over time Amazon included the business to the business model to its strategy. The last model to be added to the amazon business strategy was the customer to customer model (Strand, 2017).
Amazon has 3 main challenges 1. Keeping up with E-commerce growth 2.Keeping its competitors at bay 3.Expanding globally (Gaus, 2019).
E-commerce has experienced tremendous growth in the last 10 years. Other than using websites, companies have adopted the use of social media platforms for e-commerce. In addition, e-commerce has grown and developed in almost all countries in the word
- The company needs to be more aggressive in terms of using social media platforms to market its products (Kirtiş & Karahan, 2011). ● 2. The company needs to adopt more the use of artificial intelligence in its operations.
Amazon has numerous competitors and the main ones are :- üWalmart üAlibaba group üCostco The company has competitors locally and internationally. The competitors use different processes and marketing strategies and threat Amazon’s position ü
● 1. Acting as a one-stop shop (Greenspan, 2017). ● 2.Using effective marketing strategies ● 3.Selling both online and in physical stores to
The company needs to set up more physical shops not only in the US but in the other counties that it operates in
Amazon has had several challenges in its endeavor to expand globally. 1. It faces resistance from the countries that it expands to 2.Digital regulations that vary across nations affect its operation model 3.Delivery of its products is hard due to lack of warehouses in some of the nations
1. Amazon has opted no to open shops in countries that have unfriendly regulations or tax demands (Garner, 2018).
2. Amazon has set up several warehouses in friendly countries to act as their storage places.
1. partnering with local companies to make delivery of products easier 2.Using local companies as suppliers of products that Amazon sells in foreign nations