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Amazon Company
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Amazon is a multinational corporation based in the United States specializing in ecommerce, cloud technology, machine intelligence, and video broadcasting. Amazon was
established in 1994 by Jeff Bezos as an e-commerce platform for books, computers, and other
items. By 2016, Amazon has surpassed Walmart in market value to become the most
profitable retail company (Donici et al., 2020). Amazon is the market leader in the industry,
and it is well-known for upending traditional sectors through technological development and
enormous size.
Porters’ Five Forces Analysis of Amazon
The threat of new entrants- Low
While it is simple to set up an online shopping site, running it to compete with Amazon will
require significant money, time, and effort due to the growth and proliferation of digital
technologies, which has resulted in significant transformations to the retail sector. Numerous
new firms have entered the e-commerce space globally, but taking on a monster like Amazon
would need considerable investment in distribution, logistics, and advertising (Donici et al.,
2020). To compete with Amazon, competitors must consider additional aspects such as their
reputation, which is difficult to establish, implying that the threat from new entrants is low.
Bargaining power of suppliers-Low
As a far more prominent participant in the industry, Amazon has always had the upper
hand over the supply chain‘s vendors and has implemented specific policies to guarantee that
the vendors from whom it purchases adhere to ethical business practices. Due to Amazon’s
high volume of sales on each item, there are a significant number of vendors eager to supply
them with the commodities they demand. As a re…
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