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ID: 400343 • Letter: #
Question
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classmate assignment
1. The name of my approved company is Amazon. com, Inc. Its ticker symbol is AMZN and Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. It sells merchandise and content purchased for resale from vendors, as well as those offered by third-party sellers through physical stores and retail Websites, such as amazon.com, amazon.ca, amazon.com.mx, amazon.com.au, amazon.com.br, amazon.cn, amazon.fr, amazon.de, amazon.in, amazon.it, amazon.co.jp, amazon.nl, amazon.es, and amazon.co.uk. The company also manufactures and sells electronic devices, including kindle e-readers, fire tablets, fire TVs, and echo devices; and provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store. In addition, it offers programs that enable sellers to sell their products on its Websites, as well as their own branded Websites; and programs that allow authors, musicians, filmmakers, app developers, and others to publish and sell content. Further, the company provides compute, storage, database, and other AWS services, as well as fulfillment, publishing, digital content subscriptions, advertising, and co-branded credit card agreement services. Additionally, it offers Amazon Prime, a membership program, which provides free shipping of various items; access to unlimited streaming of movies and TV episodes; and other services. It serves consumers, sellers, developers, enterprises, and content creators.
2.Amazon's current and potential competitors include: (1) physical-world retailers, publishers, vendors, distributors, manufacturers, and producers of our products; (2) other online e-commerce and mobile e-commerce sites, including sites that sell or distribute digital content; (3) media companies, web portals, comparison shopping websites, and web search engines, either directly or in collaboration with other retailers; (4) companies that provide e-commerce services, including website development, fulfillment, customer service, and payment processing; (5) companies that provide information storage or computing services or products, including infrastructure and other web services; and (6) companies that design, manufacture, market, or sell consumer electronics, telecommunication, and electronic devices.
3. Barriers of entry benefit established companies within an industry by protecting them from new competition and preserving their profit margins. Low barriers of entry leave an industry wide open to new market entrants. The results to an industry with low barriers of entry are lower profits for the companies within that industry will inevitably result.
Therefore, established firms within an industry have great incentive to erect barriers of entry to keep the number of potential rivals to a minimum. Some barriers of entry are passive and a natural result of the industry’s operations. An example of this is economies of scale. But companies often take active steps to discourage new companies from entering their industries. The risk of entry by potential competitors is a function of the industry’s profitability and the height of its barriers to entry. The higher an industry’s average profit margin, the more enticing it is for new competitors to jump into the fray and wrestle market share from the incumbent companies. High barriers to entry can deter potential competitors from trying to enter an industry and serve its market segments.
thank you for your help
Explanation / Answer
Amazon.com is the one ecommerce retailer that came out surviving from dotcom era. It thrives on innovation and performance driven workforce. It helps the company to prevent the competitors from taking away its market share, but also gets expansion in different nations and territories. As a part of it, Amazon has identified an opportunity in physical stores and come out with Amazon Go stores in different cities of the USA. The innovative part of it is that, there is no queue formation and customers can check out on their own. It is the innovation that is attracting people to the Amazon Go and it has shown a way as how an offline store can become profitable and attract bigger size of the audience.
Though, the recent tariff war between the USA and China also acts as a threat and many products that are procured from china, may come at a higher price and it can affect upon the white label products that is sold by Amazon. In this regard, the company has to build procurement strategy to thwart this threat.
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