How Globalization and Technology Changes Have Impacted Amazon Company
It is an American multinational electronic commerce company with headquarters in Seattle, Washington, United States. With a total revenue of US$ 61.09 billion, it has a total of 88,400 employees as of December, 2012. It would be virtually impossible for a new company to reach the magnitude of inventory and status that Amazon maintains. When visiting Amazon, the number of products and services it offers is mind-blowing. 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.
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.
However, in the SWOT analysis it also says that there is a host of e-commerce sites springing ready to challenge the reign of Amazon.com. It was also mentioned earlier that the website for this particular company has proven to be stable and secure. But in the SWOT analysis it also states there that the company is susceptible to hacking. These are contradictory statement. It is troubling to find these kinds of statements because those who may read this report may conclude that the group is making generalizations without having the ability to prove their claim. It is possible however that there is an explanation to these seemingly confusing statements but the group has to revisit the report and explain it in a much better way. The group has to clarify why they say that the company’s website is secure and yet susceptible to hacking. The group has to explain even further why the company is profitable and sustainable and yet it is threatened by new e-commerce sites.
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