The Rise of Amazon.coms Business Platform - Case Study Example

The best solution was relying on the opportunity in online business, which had no best-established players. The situation analysis of the situation1. ManagementStrategyCreation of flexibility in managementIncrease market share and offer superior customer services. Proving the viability of Amazon's business model, through research on products to offer for sale and better approaches in integrating them into other sales modelReduce operating profit by cutting down on expenses such that on advertisement through the elimination of expensive adverts.

Amazon.com divides its operation into four segments The main operations are online from marketing to auctioning and daily sales.3. Marketing The company advertises through media such as television and online advertisement.4. Finance The initial capital for the company was savings from its previous employment adding accumulated profits, Financial position sacrifice profit to improve growth 5. Administration (Human Resources) Benzos, the executive manager of Amazons.com oversees operations of the company's personnel.6. SWOTStrengthsThe company has the satisfactory technical capability of fulfilling customers’ broad communication, entertainment info commercial needs and desires.

It has a competitive advantage over traditional companies that are physically based. Contrary to its online businesses, Amazon operates online and, has access to a large market. It has a strong financial and computer technology background. It has strength in partnerships and affiliations with other businesses. A strong customer care service is an important aspect explored by the company to gain market dominance (Wheelen & Hunger, 2008). Weaknesses Most customers are not familiar with web-based sources of bookstores.

In some situations, the company may undertake poor market analysis causing wasteful investment in online retailers such as pets.com, drug store.com, and home grosa.com which were never successful.OpportunitiesOnline retail business has the potential of generating high operating profits. There is growth in the number of households accessing the internet and, therefore, increased market dominance. The presence of new product lines in the market promotes the entrance of new customers for the company. ThreatsThere is pressure from financial markets to abandon the company's stated goals, of sacrificing short time profit.

There are existing book-selling companies established in the market that present competition to Amazon.com. Competition is from established home page websites such as eBay and Yahoo. Poor economic environment such as high sales tax on eco-mass transactions affects the company’s performance (Wheelen & Hunger, 2008).7. Products or servicesProducts provided by the company include books, music, video, toys, electronics, tools, kitchen, and apparel. It provides services such as partnerships, online auctions, web services, and retail shop services.

Problem definitionThe main problem faced by Amazon.com has increased operating expenses through advertisement. The best to address Amazon.com’s problem is to cut down on expenses based on the advertisement by collaborating with affiliate companies to help share the cost of the internet.