Introduction
Amazon is today one of the largest companies in the world, and its business model is rightly considered the best in the virtual sphere. There are many reasons why business, in a reasonably short time, has achieved global success and has almost no equal among competitors. The company is popular with customers, so its actions aim to meet buyers’ needs. The Amazon business model is flourishing as it is a leader in its competitive marketplace environment, and the management team maintains a high level of development and a strategy aimed at securing purchases and benefiting the customer.
Value Proposition and Basic Revenue Model
For a company to succeed in its activities, the owner needs to formulate the right value proposition that will attract the attention of a potential customer. The basis for the Amazon business model is three components that cannot exist separately: providing an extensive range of goods, rapid delivery, and a relatively low market price. The modern buyer has a wide range of marketplaces, and companies must create the most comfortable and profitable environment for sales and purchases. Thus, Amazon combines these components, promising its customers the best and most convenient service.
The company’s revenue model is characterized by its plan and clarity, which allows employees to always adhere to a clear business plan. The secret of the model is that the management of Amazon carefully studied market trends, as well as the strengths and weaknesses of competitors, built long-term relationships with customers and suppliers, and developed a logistics map for its operations. The income model is based on the buyers’ wishes, so an appropriate strategy consistent with the primary objective is needed for a straightforward mentation of the business plan. Amazon constantly analyzes the market and its requirements, which allows it to always stay up to date with new trends among marketplaces.
Opportunities and Advantages of the Company in Its Competitive Environment
Amazon has enormous market opportunities, as over the years, it has built up its reputation as one of the largest companies in the world. One of the most discussed opportunities today is the possibility of monopolizing the market and increasing the company’s share. Amazon can easily extend its activities to highly developed countries and cooperate with the largest companies in the world, developing its business model. The digitalization of the world is gradually making it possible for businesses to expand their e-marketing capabilities, allowing them to influence buyers significantly. Thus, the company has many opportunities to attract even more customers, and management is slowly and steadily moving toward this goal.
It is important to note that Amazon operates in a highly competitive environment where entrepreneurs are challenged to develop small businesses from scratch. Marketplaces are becoming more popular with users every year, and buyers are more likely to trust large known companies. In this case, Amazon is one of the monopolists and competes with 17 other companies, among which the most famous are Alibaba, eBay, and Walmart. Alibaba is a fast-growing Chinese company that is a dangerous competitor for Amazon and is actively gaining momentum in its activities. Thus, the competitive environment consists of many giants among marketplaces, each of which aims to expand the scope of its activities and attract as many buyers as possible.
Amazon has a competitive advantage among similar marketplaces and has the title of one of the largest companies worldwide. The positive side of the business, which attracts customers, is a wide assortment and low product price, which encourages the person to make spontaneous and fast purchases. Prices on the Amazon platform are competitive, as the company’s policy is to sell many products with a lower value, which provides a competitive advantage. Thus, the rapid provision of quality services under affordable conditions is the key to success, which allows the company to develop in the market actively.
Market Strategy and Organizational Development Features
The market strategy of Amazon company is quite complex and consists of several components that together create a comfortable business environment. At the heart of the business is the method of the convenient location of distribution centers for goods, precise planning of delivery time, personnel management, and acquisition of smaller companies for expansion. All Amazon warehouses have a convenient location, which, combined with competent logistics and the purchase of small businesses, provides high speed and lower shipping costs. The company also employs highly qualified personnel managers who can quickly resolve misunderstandings and ensure coordinated work.
The organizational development of companies is being digitized daily, which allows modern technologies to control business more intensively. Amazon is also no exception and uses the benefits of artificial intelligence to support its work. However, such use can cause organizational conflicts within the company, as machines still need to predict human behavior and organize the work as if a programmed robot did it. The company’s primary goal in this matter is to improve the technological development of business and the development of modern market requirements. The activities of Amazon should be focused on the wishes and needs of consumers, and efforts should be focused on any changes that will lead to better business performance.
Selection and Functioning of the Management Team
The Amazon management team is carefully selected, allowing the effective implementation of the existing business model to work in current conditions. The main focus is recruiting qualified employees and controlling the cybersecurity marketplace. To ensure that our clients receive the best possible service, the Amazon management team is committed to a thorough selection of staff and continuous training of existing employees. The company aims to improve its performance regularly and meet buyers’ needs, including those that may have previously seemed to the staff unimaginable. To ensure a comfortable shopping environment, cybersecurity professionals periodically monitor the level of cybercrime and learn about competitors’ weaknesses and strengths to think of a clear plan to attract customers.
Conclusion
In conclusion, it is essential to say that to meet the current market conditions. The business has good value propositions to ensure speed and quality for customers who want to buy goods in this marketplace. The primary model for high income is the precise design of logistics and the sale of many products. Amazon has many market opportunities, such as monopolizing and using modern technologies to improve performance. These improvements are necessary, as the company’s competitive environment consists of business giants who struggle for credibility in the market, and the competitive advantage of Amazon is to provide the most favorable prices for the buyer. There is also a market strategy for business success, which consists of proper logistics and hiring skilled professionals supported by technological progress. Competent management is achieved through continuous training of employees and meeting the growing needs of consumers, which ultimately testifies to the effectiveness of the business model of the company.
Reference List
Alshmrani, H., ‘An Analytical View of Amazon Success in the Worldwide’, Life Science Journal, vol. 18, no. 6, 2021, pp. 71-90.
