amazon case study hbr article

1. Amazon case
study analysis
Presented by
V-spaark

2. External Environment Analysis
PESTEL Analysis
1. Government regulations on e-commerce and
antitrust scrutiny.
3. Changing consumer preferences towards
online shopping and convenience.
5. Sustainability initiatives in logistics and ckaging.
2. Economic conditions affecting consumer
spending and purchasing power.
4. Advancements in AI, robotics, and data
analytics for operational efficiency.
6. Compliance with labor laws and regulations in
various regions.

3. Porter's Five Forces Analysis
1 Threat of New
Entrants
High barriers to entry
due to Amazon's scale,
infrastructure, and
brand.
2 Bargaining Power
of Suppliers
Strong bargaining power
due to the vast number
of suppliers.
3 Bargaining Power
of Buyers
Moderate due to the
large customer base and
price sensitivity.
4 Threat of Substitutes
Moderate threat from traditional retail
stores and other online platforms.
5 Competitive Rivalry
Intense competition from major players like
Walmart, Alibaba, and eBay.

4. Internal Analysis
Strengths
Strong brand recognition and customer loyalty.
Advanced technology infrastructure and data
analytics capabilities.
Weaknesses
Reliance on third-party sellers for a significant
portion of sales.
Vulnerability to supply chain disruptions.
Opportunities
Expansion into new markets and product
categories.
Growth potential in cloud services and digital
content.
Threats
Regulatory challenges and antitrust scrutiny.
Competition from established and emerging
rivals.

5. VRIO Analysis
Value
Customer-centric
approach and
efficient logistics.
Rarity
Advanced
technology
infrastructure and
data analytics
capabilities.
Imitability
Continuous
innovation and
investment in R&D.
Organization
Strong culture of
customer obsession
and operational
excellence.

6. Competitive Strategies
Prime membership benefits, competitive pricing, and a wide range
of product offerings
Helped differentiate it from competitors and maintain customer loyalty.
Brand recognition, advanced technology infrastructure, and
customer-centric approach
Positioned Amazon as a market leader in the online retail sector.
Strategic focus on innovation, technology, and customer satisfaction
Key to its sustained growth and success in the highly competitive retail industry.

7. Case Analysis conclusion
Amazon's success story revolves around three key pillars: customer obsession, technological
innovation, and operational excellence. By leveraging these, they've transformed the retail landscape.
Competitive strategies like Prime memberships, competitive pricing, and a vast product selection
solidified their market leadership. They continue to innovate and adapt despite challenges, ensuring
sustainable growth in the competitive retail world.