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Amazon's Key Competitive Advantages

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Amazon is a company that sells items globally online, for a decent price, for customers who are interested in buying products from their website. Amazon is a large business with over 250 and more employees, this means that the business is extremely popular. Amazon is a public limited company, this means they want to gain profit by being a public limited company. By being a public limited company amazon can offer shares to the general public. The benefits of Amazon being a public limited company is that it will allow the company to have limited liabilities. Another advantage for Amazon being a public limited company is that Amazon can receive investments from banks, wealthy individuals and so on. Shareholders can also benefit from this as they can sell their brand to Amazon.

There are 3 main production steps for a product to be sold in the market: primary, secondary and tertiary. A first step for a product to be made is primary, this is when raw materials like wood, coal and metal and many more are sold to secondary consumers. Secondary is when raw materials are manufactured into production, at this stage once the products are manufactured they are given to the territory to sell onwards to consumers. Territory are sellers, they sell the product onwards manufactured by secondary consumers.

Amazon is a tertiary business they buy secondary materials from secondary factories to sell on or support their brand. Small businesses like small grocery stores purchase quantities of goods from amazon to resell onwards and gain profit.

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Across the globe, there are more than 175 warehouses for amazon where they package their products, returns and exchanges. Amazon is a website used globally that is widely available to many countries, when purchasing a product from an international country, it is brought from amazon, amazon then sells and ships their products globally. Amazon engages in charities by giving 0.5% of their net product worth, however this is a customer’s choice to opt in.

Amazon is extremely successful as they are a global company, this means amazon is globally accessible to a lot of customers. One reason for Amazon being successful is that Amazon has their own products such as amazon prime, fire stick and furthermore. One of their main reasons for Amazon being so successful is that they sell products at a lower price, customers demand lower prices for their products as they don’t want to pay a lot. Another reason is that they deliver fast, this can mean that customers will get their products as soon as possible. They also have a wide range of products, attracting a wide range of the customers. Having these advantages will create more traffic resulting in a successful business. However, these so called advantages could lead to disadvantage, as lowering prices can lead to less profit. For example buying an iPhone for £100 and then selling it onwards for £110, in order to make a rewarding profit, the business will have to sell 10 units of the product. Delivering could lead to a disadvantage as Amazon would need to deliver on time, safely and think about how to export.

Amazon aims to extend their business as they have started online delivery services, they have added an option where you can shop groceries online. Amazon’s next plans are to build groceries stores across the globe to increase profit and promote their brand in multiple countries. Amazon plans on knowing what their customers need and wants in order to improve their business.

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Amazon’s Key Competitive Advantages. (2022, August 25). Edubirdie. Retrieved February 1, 2023, from https://edubirdie.com/examples/amazons-key-competitive-advantages/
“Amazon’s Key Competitive Advantages.” Edubirdie, 25 Aug. 2022, edubirdie.com/examples/amazons-key-competitive-advantages/
Amazon’s Key Competitive Advantages. [online]. Available at: <https://edubirdie.com/examples/amazons-key-competitive-advantages/> [Accessed 1 Feb. 2023].
Amazon’s Key Competitive Advantages [Internet]. Edubirdie. 2022 Aug 25 [cited 2023 Feb 1]. Available from: https://edubirdie.com/examples/amazons-key-competitive-advantages/
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