Amazon Business Analysis

Thesis Statement

“The organizational leadership, diversification of businesses and effective management of operations are the major contributors of the success of Amazon.com.”

Introduction

Amazon is an information broker organization. The organization generates business through selling with the help of online processes. The organization has disruptive technologies as the organization is small and the organization has outsourced most of its business operations. The organization has effectively managed the disruptive innovations together with advanced technologies with the help of effective communication with partnership and alliances. Even though, there are several online brokers available, Amazon has held its distinction as a first major pioneer in American market and global e-retailing industry with its leverage brand and business model (Lisa, n.d).

The organization business model involves the four-activity type in operations of marketing. The organization offers low price products to customers. The organization has formed alliances with online bookselling organizations. The organization has maintained superior relationships in marketing. The customer experiences of Amazon shows the dynamic nature of competitive strategy of the organization. This is a major reason why the organization looks for providing and adapting to new marketing environment together with the development of its growth trajectories. As a pioneer firm in the e-commerce industry, Amazon looks for entering new markets with innovative strategies, however, it can evolve into other tactics with the changes in conditions (www.voloper.com).

In this paper we will discuss the business operational activities of Amazon. Furthermore, the paper will discuss the business of Amazon which generates profits of the organization. Furthermore, we will discuss the industries in which the organization conducts its business activities and which industry provides greater profits to the organization. In addition to that, we will provide an overview of major company initiatives over past three to four years including acquisitions and divestitures. Moreover, we will discuss how these fit into the company's strategies for growth and expansion and how they help the company to earn revenues, move into new markets, increase their size in existing markets or industries, and produce synergies. We will also analyze the organization strategy with respect to its strategy of expansion or penetration in new markets or industry.

Discussion

Company Operations

Businesses

Amazon caters to four major customer sets - consumers, sellers, enterprises, and content creators. Consumers are served through retail websites that are designed to allow the sale various unique products (Amazon as well as other vendor products). Merchandise is offered at lowest possible prices. It also offers order fulfillment services to consumers. Amazon also offers 'Amazon Payments' facility to sellers looking to process payments quickly, easily and securely. It also offers fulfillment services to sellers requiring order fulfillment services; Fulfillment by Amazon (FBA) gives sellers access to fulfillment resources and expertise (Filson, pp. 2-5).

Initially, Amazon was established as a place to purchase books online due to its exclusive customer centric experience provided to book lovers online. During the early stages of the organization, Amazon used to sell books only, but now books are one of a wide range of items sold on ...