Amazon Case Analysis
Technological most important aspect of Amazon’s Pestle factors:
Key drivers for change: * /Internet penetration rates * Web development e-commerce * Protecting their patented software and not being imitated easily by competitors.
E-commerce-Bezos understanding of e-commerce through knowledge of web users and the web that has made amazon a dominant company on the web .’(pg 27 Saunders 1999) ,Branding of the website is important .(Pg 91 saunders)
Commitment to e-commerce has to be maintained, by keeping ahead of the technology curve, Amazon’s one-click technology is important in keeping customers visiting.(pg 32-33 saunders )
Porters 5 forces analysis
The threat of Entry
* How will …show more content…
And Amazon could therefore capitalize on this as their costs of sales were a lot less. * Competitors such as barnes and noble would have High exit barriers as they have a lot of assets through their stores that others may not buy.
Industry Life Cycle
Only 10% of dot.coms fromed since 1995 still surivive
Development stage: * Since 1995 online commerce has established itself as a legitimate commerce vehicle. * In april 1995, the internet moved away from federal sector to the commercial sector when NSF decomissened NSFNET and moved assets to Vbns( Very high speed backbone network service ) which allowed for internet service providers to develop.
Growth stage * Taking ideas to market fast the dot.com era * Funding required for growth was from investors not consumers at this stage * Stock options * Connection rates to the internet continued to grow and economies develop, internet was growing at a rate of 2,300% monthly. * Customer focused innovation * Barriers to entry are low as competitors have not built up scale, experience or customers loyalty, although book stores had been launching their own websites as extensions of their retail outlets, no large competitors existed online as very few retail sites had recouped their start-up costs, including Amazon. * Amazon became the web’s largest and best online book store within a year,