Sample Economics Essays on Amazon.com, Inc

Most U.S. largest retailers are publicly traded, with their shares sold through NASDAQ. The smallest retailers’ shares are traded over-the-counter. Amazon.com, Inc is one of the largest retailers that has its shares sold through NASDAQ.

Background

Amazon.com, Inc is a multinational technology company that is based in Seattle. It is considered one of the big four tech companies alongside Facebook, Apple, and Google (Smith, Rupp, and Offodile 2). The company focuses on various techs such as ecommerce, artificial intelligence, and cloud computing.

History

The company was founded by Jeff Bezos in July 1994. Jeff Bezos chose Seattle to be the location of the firm. The organization went public in May 1997. In 1998, the company began selling music and videos. In its operations, it began acquiring online sellers of books from the international markets. The following year, the company began selling a variety of products such as consumer electronics, software, and video games. The corporation started Amazon web services (AWS) in 2002 to provide data on internet traffic patterns. In 2006, the company expanded its webs services by creating a platform for cloud computing. The corporation bought Kiva systems in 2012 to automate its inventory business.

SWOT Analysis

Strengths

In the online retail market, Amazon is the strongest brand and is well recognized by consumers. This strength is responsible for the corporation’s rapid growth (Diehl and Bishop 9). Another strength is moderate business diversification. The corporation sells a variety of products such as online retail services, consumer electronics, information technology services, and others. This has enabled the corporation to maintain a competitive advantage over its competition.

Weaknesses

The company has an imitable business model. For instance, the firm’s competition can also establish an eCommerce they can use to sell their products. Moreover, the company is often facing challenges in penetrating the developing markets where it can generate more revenue due to the high economic growth rates in these markets.

Opportunities

Amazon.com, Inc. has the opportunity to penetrate the developing markets. This would enable it to gain a stronger competitive advantage over the firm’s competition that has not entered such markets. The company also has an opportunity to expand its brick-and-motor stores operations to generate more revenue.

Threats

The company’s major threat its strict competition in both the local and international markets. The company faces competition from various firms such as Walmart, Apple, and Google (Diehl and Bishop 10). Moreover, the company’s security and integrity are often threatened by cyber-criminals.

 

Works Cited

Diehl, Kristen, and Bill Bishop. “Strategic Analysis of Amazon Madison Morgan November 16, 2017 MGMT 275.” (2017), https://candlesbymadison.com/wp-content/uploads/2018/04/Strategic-Analysis-of-Amazon-copy.pdf

Smith, Alan D., William T. Rupp, and O. Felix Offodile. “Amazon. com, Inc.: Retailing Giant to High-Tech Player?.” (2017), https://digitalcommons.kennesaw.edu/cgi/viewcontent.cgi?referer=https://scholar.google.com/&httpsredir=1&article=1157&context=ama_proceedings