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Amazon Strategic Management Study

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STRATEGIC MANAGEMENT
CASE STUDY B : AMAZON

1- By using Porter’s 5 forces’ framework, describe the forces that affect the core initial market of amazon (the online retailing industry)

The power of Suppliers:
Suppliers are not concentrated : thousands of publishers throughout the world. The inputs are not necessarily rare.

The power of Suppliers:
Suppliers are not concentrated : thousands of publishers throughout the world. The inputs are not necessarily rare.

The power of Buyers:
Buyers have a high bargaining power because of the low switching costs the Internet market allows. Besides, the market is very competitive, and that ensures a high power to consumers.
The power of Buyers:
Buyers have a high bargaining power because of the low switching costs the Internet market allows. Besides, the market is very competitive, and that ensures a high power to consumers.
Potential competitors: Apple, Microsoft, and Google IBM, Sun system, barns and noble.
Potential competitors: Apple, Microsoft, and Google IBM, Sun system, barns and noble.
The threat of substitutes:
Customers could switch to alternatives if traditional web retailers promote a substitute with a higher value such as Wal-mart that becomes more and more competitive on the Internet market.
The threat of substitutes:
Customers could switch to alternatives if traditional web retailers promote a substitute with a higher value such as Wal-mart that becomes more and more competitive on the Internet market.
Potential entrants
Potential entrants
Competitive rivalry
Competitive rivalry
Threat of entry : Very low because Amazon developped strong partnerships with big and successuful firms like toys R us, Simon and Shuster.

Amazon also has a unique patented software technology which is a natural barrier of entry.
Threat of entry : Very low because Amazon developped...

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