Introduction (250-300)
Amazon – Incorporated in 1994 in Washington state. American electronic trade and distributed computing organization situated in Seattle Washington. The tech monster is the biggest web based retailer on the planet by add up to deals (revenue)and showcase capitalization. It works in three general sections: media, gadgets and other products. They enjoy the perks of increasing sales revenue by selling over 480 million products in USA. Its revenue is US$135.98 Billion (2016) and has aggressively expanded since 2014. Owning over 40 subsidiaries including Book depository, Zappos, Twitch.tv and Whole Foods Market.
One of the expansions is Amazon Whole Foods.
Prices at Whole Foods post-Amazon merger
Item
Price on Aug. 25
Price on Monday, Aug 28
% Change
Organic Cage-free Large Brown Eggs
$4.29 per 12 count
$3.99 per 12 count
-7%
Organic Baby Lettuces
$3.99 a package
$3.49 a package
-13%
Organic Baby Kale
$3.99 a package
$3.49 a package
-13%
Creamy/Crunchy Almond Butter
$7.99 a jar
$6.99 a jar
-13%
“365 Everyday Value” Organic Butter
$5.29 per 16 oz. stick
$4.49 per 16 oz. stick
-15%
Animal-welfare-rated 85% Lean Ground Beef
$6.99/lb
$4.99/lb
-29%
Organic Rotisserie Chicken
$13.99
$9.99
-29%
Organic Whole Trade Bananas
99 cents/lb
69 cents/lb
-30%
Organic Gala Apples
$2.99/lb
$1.99/lb
-33%
Organic Avocados
$2.99 a piece
$1.99 a piece
-33%
Organic Responsibly Farmed Salmon
$14.99/lb
$9.99/lb
-33%
Organic Responsibly Farmed Tilapia
$11.99/lb
$7.99/lb
-33%
Whole Trade Bananas
79 cents/lb
49 cents/lb
-38%
Organic Fuji Apples
$3.49/lb
$1.99/lb
-43%
Table.1 This chart is based on a CNBC survey of prices at New York's Upper East Side Whole Foods location. These are all of the items mentioned in Amazon's Friday press release.
Strategic Analysis:
Amazon.com has qualities that have kept on bailing them out all through the harsh circumstances faced in the industry and one of the qualities that are detectable is the way that they are the principal mover in the business and has set up regular customers. Fulfilling stakeholders’ expectations by achieving advantage in diversifying environment and re-establishing proper decisions based on the basis of resources and competences. Amazon.com works utilizing a Hybrid Business Strategy which joins two of the above three procedures relying upon the Business parts it is working inside. Concurring to common conviction, the three strategies cannot be consolidated particularly cost leadership and differentiation and focus. Amazons mission statement explains its main intention of selling services “We seek to be Earth’s most customer-centric company for three primary customer sets: consumer customers, seller customers and developer customers”
ll three systems can't be consolidated particularly fetched initiative and
Strategies – Corporate strategy
Strategies – lower prices on a selection of best-selling staples across stores after completion of merger, Amazon wishes to expand its grocery business by expanding its core ecommerce efforts in this category.
External analysis
Amazon.com has numerous chances to tap and has numerous dangers that they experience every day. Fortunately, for Amazon.com the market they are in still youthful and not yet as well known as what it can and will be. I am certain there is some fragment or industry that Amazon isn't in that they could hop into and be fruitful. One place the organization can take a gander at to profit is in their associations. They have lost huge numbers of these throughout the years to incorporate some extensive players and they have not worked hard in increasing more accomplices since. It appears as if anything they touch with regards to purchasers, dealers, or engineers is fruitful. An open door that they might have the capacity to get into is the likelihood of working together with an expansive produce of a decent and be the main place online the buyer can purchase the great. It is apparent by the rates that Amazon.com still profits off their media. Another open door is the likelihood of making a site and spreading into Mexico, and South America. Amazon is able to use tangible and intangible resources for its customers. The culture – different culture as the merger has created a unique one. Customer based culture, focuses on online high quality for high prices transfer the cost (cost cutting).
amazon can utilize tangible and intangible resources for its clients. The way of distinctive culture as the merger has made an interesting one. Client based culture, concentrates on online high caliber at high costs exchange the (cost cutting).
MICRO ENVIRONMENT – PORTERS 5 FORCES
Porters 5 forces is used to determine the external factors define the conditions of the e-commerece industry environment, with focus on the online retail market. The company remains the biggest player in this market, ro keep this position in the long term amazon must regularly evaluate the external factors in the online retail industry environment
MACRO ENVIRONMENT – PESTEL ANALYSIS
Communication – employee morale might decrease because of the changes as amazon is more digital.
Political factors –
Company – amazon
Rivals – (media segment) competes with auction site eBay, Netflix, time warner cable, apple (itunes) google (playstore) etc. strategies – (amazon leaves rivals behind on warehouse expansion ) taking more than five times as much new warehousing space this year as the next fastest growing rival; expanded uk distribution newtwork by 400000 sq ft 2017;
Rival (Lidl) TOOK 754,000 SQ FT.(telegraph)
(electronic seg) Walmart, systemacs, radioshacks, staples, target etc.
other operating seg – amazon cometes with several of the worlds largest companies including CDW, PC conection, insight enterprises, google, oracle, salesforcecom Accenture and citrix systems.