Assignment 3.....Amazon

Strategy Development (Amazon)

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Amazon prides itself as one of the largest global online shopping platform basing its huge annual sales on the sole principal of consumer-obsession. It considers itself a customer-centric organization through listening to its consumers. Despite this fact, the field of play is not as easy as when it first began. The emergence of not only hungry but also new and large online platforms means an increased number of players and competition. Competitors in the market include the growing online marketplace Walmart, Google, Apple and Netflix who are not entirely new but are looking to expand their expertise and challenge Amazon for markets (Shah, 2017). The marathon is majorly Walmart since it has been in existence for just as long and it challenges Amazon from almost every angle, inclusive of the media, operating, electronic and general merchandise segment.

With this in mind, it is vital to recognize that each of this competitors is large and boss specific market segments globally. Google boasts the most significant market share globally among internet based companies. A considerable market share does not mean that it takes the market share from other organizations primarily because it is mostly a complementary asset. Amazon comes in third among the market share after Facebook which is not an immediate threat in consideration to the commodity on offer(Shah, 2017). In the media segment, Amazon boasts a more significant market share than the likes of Netflix due to the ease of accessibility of its movies. The Amazon prime subscription beats the monthly Netflix charge. Diversification ensures that Amazon also competes with large enterprises like Walmart in the electronic merchandise distribution in the form of radio's, DVDs and Television. Likewise, Amazon fits into the operating segment market competing with firms like Google and Oracle as a source of online material including books and articles.

The main characteristic of the business is a consumer-based approach to the market by providing goods and services conforming to differentiated demand. Involvement in a wide range of commodities makes on line selling a high-value business. Purchase of products online such as books means that the organization's sale cycle is long as it involves a reasonable amount of time before purchase is made. The nature of the business also involves delivery at stores nearest to clients which takes considerable time (Shah, 2017). Furthermore, a solid and extensive market ensures that internet selling is at the peak of their growth curve with a large number of players. The real drivers of profit in this business are contained in the ability to efficiently transform orders to delivery quickly while ensuring consumer satisfaction. Our competitor, Google, control the largest market share but do not directly deal in sale of most commodities (Shah, 2017). Likewise, Netflix has a constant number of loyal media customers, but their expensive monthly bundle is not as suitable as amazon's prime subscription. On the other hand, Walmart strength includes a reputable workforce and sturdy financial base evident in their investment in new companies. Despite that, their inability to conform to consumer taste and preference gives Amazon a competitive advantage in accessing and keeping new markets.

Amazons competitors are a considerable worry due to the great quality of the nature of their products. All of these companies spend a tremendous amount on research and development not only for new products but also markets. Google spend an estimated 14.1 billion dollars annually, Netflix spends 10.2 billion dollars, and Walmart spends almost 1.1 billion dollars (Molla, 2017). Amazon pays an all-time high of 16billion dollars for the same. To blow off Amazon, Walmart and Google combined to improve their sales force which is about 30% compared to Amazons 70%. On the media segment, Netflix have lost most of their Salesforce to Amazon and Google (Shah, 2017). Each culture is high performance driven through the use of aspects such as management by objectives, therefore, analyzing shortfalls by the organizations in preparation for the next year. American citizens make the most massive base for online business platforms consumers through orders from the sites of the companies as mentioned earlier.

Amazon's competitors are continually changing field plays to compete favorably. New ploys include sales force mergers between Google and wall mart to shake the strong, smart speaker ordering strategy. In like manner, Walmart is growing its marketplace to compete including the purchase of Jet.com. Walmart has invested billions in multichannel capabilities to combat Amazon (Heller, 2016). On the media segment, Netflix has offered downloadable content for its users to beat the disadvantage of faulty Wi-Fi. Google on their side has gone for a lay a larger claim by making their stock very affordable. Due to extraordinary field strategies, there are few or no new entries into the field except the rise of Jumia online market that has exploited the African opportunity.

In the last few months, Amazon has increased its spending on research and development for new market opportunities (Molla, 2017). Quality research ensures the maintenance of already loyal customers and capture of new consumers. A fresh load of a customer base is evident from the availability of annual fee payment that allows customers to access movies and TV programs throughout the year. A large number of individuals switched reliability to Amazon due to these friendly prices and ease of access. Additionally, the introduction of prime monthly subscriptions allows members to access the full benefits of prime service including a free two-day shipping on Amazon orders and music streaming. The only competitive advantage has been lost to Google due to their comparatively cheap media products.

In the next few years, the company will face a new challenge in the form of an epic battle against Walmart (Heller, 2016). Walmart has already shown its objective of toppling Amazon, the greatest ever online organization. A competitor can come up with a competent delivery operation to discredit the credibility of the company which mainly focuses on delivery (Roose, 2014). Also, a competitor could try to occupy amazon's market share in different segments. Most evidently is the strategy by Walmart to locate their stores within ten miles of every American citizen. Mergers and acquisitions between our main competitors like Google and Walmart to shift the Salesforce could sweep us off our feet.

On the whole, it is imperative that the organization comes up with a new strategy to keep its impeccable record. Our winning move would be to embrace globalization and approach new emerging markets like Africa. Such a move acts to not only strengthen our financial base but also to increase the client base while still upholding the company's reputation. Researchers on client tastes and preference will keep us on toes with the primary goal of the customer first. An efficient customer service is a pro to keep loyal customers. Otherwise, what is a successful business other than the ability to attract and retain its client base?

References

Heller, L. (2016). The Battle between Walmart and Amazon Will Be Epic. Retrieved from https://www.forbes.com/sites/lauraheller/2016/10/30/the-battle-between-walmart-and-amazon-will-be-epic/#15c4282956ee

Molla, R. (2017). Tech Companies Spend More on R&D Than any other Companies in the U.S. Retrieved from https://www.recode.net/2017/9/1/16236506/tech-amazon-apple-gdp-spending-productivity

Roose, K. (2014). 6 Ways Competitors are trying to Kill Amazon. Machine Age. Retrieved from http://nymag.com/daily/intelligencer/2014/08/6-ways-competitors-are-trying-to-kill-amazon.html

Shah, A. (2017). Amazon Competes With Everyone -- And Wins. Forbes. Accessed November 21, 2017 from https://www.forbes.com/sites/alapshah/2017/08/07/amazon-competes- with-everyone-and-wins/#3c09e2575a37