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Amazon Inc - Research Paper Example

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Amazon Inc Overview: Amazon Inc Amazon Inc is an American e-commerce company. The company has been very often credited as one of the leading online book, music and video retailers across the globe. It was instigated by Jeff Bezos in 1995. Today, it is one of the widely renowned and most visited e-commerce sites on the web…
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Amazon Inc

In its recent endeavors, the company has been performing as a proven technology leader and has developed e-commerce innovations such as personalized shopping services, I-click ordering easy-to-use and other browse features. The company offers faster and safer credit transaction facility to its customers, and e4-mail communication with customers and direct shopping at competitive price worldwide (Amazon.com, Inc., 1998). The primary purpose of this paper is to identify Amazon’s current and future challenges along with the requisite competencies needed for its success. Current and Future Challenges Amazon has been successful in satisfying its customers’ needs with lower prices, vast selection and speedy delivery facilities. Nevertheless, the company has been currently facing intense competition from other online book merchants, mainly due to ease in new entry and low level of switching costs in the industry. Furthermore, the challenges in the form of competition are expected to increase in the future, making it more challenging for Amazon to achieve its goals and objectives. Notably, the security and privacy issues have always been a matter for challenge for the online business companies like Amazon. Despite, the adequate level of security and other facilities provided by the company, many customers decipher reluctance for conducting transactions over the internet. Additionally, the rapidly changing e-commerce environment has offered the company to make constant changes in its strategies in order to grow and adapt to the changing environment. Along with these challenges, the poor logistics and supply chain management has radically affected the ability of the company to earn substantial profits (Singh & Waddell, 2004; University of Washington, 1998). Competencies Required For Success Over the years, the company has been able to meet the needs of its customers more effectively and efficiently, which has rewarded the company to establish itself as one of the world’s largest online retailers. However, the constant changes in the online business environment, along with increasing competition has urged the company to focus on certain specific factors to strengthen its core competencies in order to retain its market position and attain success in the future. Hence, it can be argued that market orientation is a crucial factor for modern management in the e-commerce sector. It is also essential for Amazon to target the relevant needs of the targeted customers rather than emphasizing solely on the advancement of its technology approach. It is also equally important for the company to capture the arising market opportunities after assessing the upcoming risks in an efficient manner. In this regard, it is suggestible that the goals and strategies framed by the company should be in consistent with SMART (i.e. Specific, Measurable, Achievable, Reliable and Timely). It is thus necessary for the company to establish effective planning, monitoring and controlling of its activities. Furthermore, the company should conduct market analysis as well as competitors’ analysis at regular intervals in order to acquire potential understanding about the prevailing market trends and competitors strategies. The company should also involve in developing leaders for future and ensuring greater success with increased competencies of the future leader to deal with the challenges in the most efficient manner. Nonetheless, ... Read More
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