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Amazoncom Case Analysis

ng phrases like: "best buying experience"; "world's most customer-centric Company"; and "best shopping experience", Amazon strives to stir one's emotions. Next, the external evaluation for Amazon will be performed.External EvaluationThe first step in the external evaluation is to perform an external factor evaluation (EFE) matrix, which describes the external opportunities and threats facing Amazon. The EFE matrix follows:EFE MATRIX FOR Amazon.comCritical Success FactorsWeightRatingWeighted ScoreOpportunitiesGrowing number of e-commerce bankruptcies0.130.30Platform monetization0.1540.60Number of Internet users is continuing to rise0.1530.45International expansion0.130.30Technological advancements can improve productivity0.0520.10ThreatsWeakening economy0.0520.10US BMV segment experiencing anemic growth0.1530.45Increased competition0.130.30Minimal barriers to entry0.140.40E-commerce may be a slowing consumer trend0.0520.10TOTAL1.003.10The above chart would indicate that Amazon is responding to existing opportunities and threats in its industry slightly better than the average competitor, as indicated by a EFE Matrix score of 3.10. Several factors have varying levels of effect upon the online shopping industry. For instance, the number of Internet users is continuing to rise exponentially. In 1996 and 1998, there were 61 and 147 million worldwide users of the Internet, respectively. Projections for 2002 are 300 million worldwide Internet users. Growth such as this obviously has a dramatic effect upon the online retail industry, as evidenced by a weight of 0.15 on the EFE Matrix. Additionally, companies, such as Amazon, that have an established platform (technology, distribution centers, customers, brand, etc.) have an increased ability to monetize their platform through partnerships like Toys "R" Us and Borders Group. "After all, what if [Amazon] becomes the online commerce partner (customer service, order fulfillment, inventory ...

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