The key elements in the Amazon’s competitive strategy

What are elements of firm’s competitive strategy and how each strategy evolves and fit together? 

The key elements in the Amazon’s competitive strategy include a convenience, wide selections, and technological advances. We ensure that all these elements are working together to enhance great customer experience and growth. Since the company is resolute about innovation, the evolution of these business strategies is continuous. It is due to a wide range of services and products that our customers can conveniently have a one-stop shop online. Amazon’s aim in advancing technology is to help customers to make shopping with ease and get their delivery faster. Some of the enabling features include Click and installing robots in our online stores.

To what extent are the strategy in cloud computing services, e-commerce, digital media streaming, and personal media players successful and compatible? How will you maintain Amazon success all these markets? 

In general, the key strategy in all these markets is "plow back" of reinvesting their cash flow into improving value for customers and other business operations. Amazon has become an e-commerce giant basically because of focusing on value creation, fast deliveries, and offering a vast selection which has attracted customers' loyalty. Also, on these strategies, Amazon has launched a technical service to other retailers through the web platform known as the Amazon Enterprise Solution. Although this strategy had potential risk, the company had to reinvest into it. The potential risk was present while launching Prime Instant Video, the Kindle, and Fire TV. However, regardless of the risk involved, these strategies created value to the targeted customers. All the named trading products and services, that is cloud computing services, e-commerce, media player and streaming they are compatible because they can be done online and involve the internet. Therefore, customers can access Amazon as long as they have internet.

What does competitive strengths and position of Amazon demonstrate about its e-commerce business? 

Generally, Amazon has a strong reputation and superior technology and thus, an attractive customer base. With this, it has an extreme experience with e-commerce. Further, it has a wide range of resources that promote its growth and giving the customer a greater shopping experience. The major focus of our company is innovation and adding to the customers. Advancement in technology skills has been essential in perfecting logistics strategies and delivery which has attracted customer loyalty. Unlike physical stores where a new commodity to be accommodated there has to be constructions and other necessary preparations, in online stores Amazon will just add an additional page for new products. Therefore, based on all that analysis I consider Amazon to be competitively stronger.

What is your financial assessment of Amazon performance? 

In the NASDAQ exchange, Amazon.com is one of the mega-cap firms. In this market, it attracts high premium valuation as it has demonstrated a consistent sale growth over the years. To avoid cases of being undervalued while applying normal earning based method, several valuation techniques have been introduced to the market. Amazon has gained the reputation for selling its products and services at competitive prices, and as a result, it leaves small profit margins. First, the profitability ratios comprise of gross profit margin and operating income margin. Over the last five years, Amazon has maintained a growth rate of 30%.

Financial Ratios 

References

Ritala, P., Golnam, A., & Wegmann, A. (2014). Coopetition-based business models: The case of Amazon. com.  Industrial Marketing Management ,  43 (2), 236-249. 

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