How Globalization and Technology Changes Have Impacted Amazon Company
Amazon has been in the internet marketplace for about thirteen years now; it would be extremely difficult for a start-up company in the industry to raise enough capital to even compete with Amazon on a lower level.
This led Amazon.com to prove to the world that their business model was profitable and also they popularized online shopping which was recognized by time magazine and awarded Jeff as the business person of the year.PESTEL factors indicate attractive global market to be exploited by Amazon.com. Asian markets have reflected tremendous growth opportunities in recent past. Advancement and usage of internet for social networking has led to new opportunities to be exploited. Amazon.com should support environment friendly actions as increased importance is been given to environment these days, also to be a true global company Amazon.com has to incorporate single global strategy which involves legalities common to all of the globe. The graph below shows the dominance of Amazon.com sector wise. The balloon shows of all the business done by amazon.com majority has been in internet retailing; direct selling, vending and home shopping is almost void. This reflects the influence of internet on the business of Amazon.com. It is also seen below emerging markets and present markets where currently Amazon.com has its presence. Of all the retail sales value Amazon.com holds a very small share but then future trends look brighter as the CAGR expected is highest in India by 2011. This lays a pathway to Amazon.com as to establish themselves without any delay in India. Amazon.com should seek ways to sell products to customers with less havoc, instantly and securely as they did in text message selling without internet. In order to achieve this they need to have high end technical skills. Recently released kindle can also be used as a tool to increase the download sales.
The group has to explain even further why the company is profitable and sustainable and yet it is threatened by new e-commerce sites.
In particular, Amazon lost more than 90% of its value when the dotcom bubble crashed. Past returns are clearly not indicative of future results. Amazon's strong performance during the 2020 bear market is a sign that the company is maturing. The thousandfold return available to early investors in Amazon simply cannot be repeated. Without hyperinflation, a trillion-dollar company will never be worth a quadrillion dollars because that is more than the combined value of every stock market in the world.
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