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Amazon attracts many customers including buyers, sellers, content providers, and enterprises. The demographics include customers of any age, gender, and income. The majority of customers are from 30 to 50 years old. Concerning the psychographics, Amazon has a wide variety of products capable of satisfying any type of customers. People usually choose Amazon for their relatively low prices and customer service. Thus, the company gains customers’ loyalty.
The most popular categories of Amazon, in which the customers buy most of the products are electronics and books. The company also allows its customers to sell products to each other.
In the near future, the company is determined to launch a new program, which is aimed at using drones for the delivery of products. The company serves its customers very well (Bhasin). Although Amazon has many opportunities, there are also some threats, mostly in the form of competitors like Walmart.
Regarding the company’s strengths, it provides excellent customer service, has the lowest prices on many products, and successfully integrates the latest innovations. As for the weaknesses, Amazon adds too many new categories that have rather high prices.
The company can improve its strengths by lowering prices in more of its categories. Regarding the weakness, Amazon can change its pricing strategies in unpopular categories (Bhasin).
The most important PESTEL factors for Amazon include the governmental support of e-commerce, economic stability, an increase in online buying habits, an increase in IT efficiency, interest in environmental programs, and increasing product regulation.
The company has many partners such as Microsoft, Nike, Olive Garden, Accenture, Adobe, Storm Reply, Oracle, Riverbed, IBM, Citrix, and many others (Greenspan). The best partners for Amazon are companies that specialize in the IT-sphere.
Amazon has many competitors, as its assortment is very versatile. However, its main competitors are other online retailers like eBay and such companies as Walmart who also sell a great variety of products.
The first recommendation for Amazon is to expand its operations also in developing countries, which show potential in e-commerce growth. The second recommendation is to strengthen the brand by using social responsibility strategies such as environmental protection. The third recommendation for the company is to continue relying on innovative technologies, for example, using drones for delivery (Greenspan).
Bhasin, Hitesh. “SWOT Analysis of Amazon.” Marketing 91. 2017, Web.
Greenspan, Roberta. “Amazon.com Inc. PESTEL/PESTLE Analysis, Recommendations.” Panmore Institute. 2017, Web.