Sitting in his office, Mark Ellinas frowned at his computer screen. It was filled with row after row of electric bikes, from expensive models to cheap knockoffs that seemed held together by spit and a prayer. Though they varied in style and price, the bikes did have one thing in common: where they were being sold. The website he was looking at, flush with options, was Amazon. The market for electric bikes had exploded in the past few years, especially in China, and it showed no signs of slowing down. Now PedalSpark was about to introduce a cheaper, entry-level model, which it hoped would have broader appeal.
Amazon, Apple, Facebook, and Google | Harvard Business Publishing Education
In January , Amazon. The shareholders expressed their satisfaction, but not all were happy with Amazon's meteoric rise. Many traditional retailers in the United States were going bankrupt, while major competitors such as Walmart and Best Buy were forced to invest aggressively in online retailing to prevent their market share from eroding. Every retail sector appeared to be under threat, fueling anxieties that Amazon and America's other tech giants were becoming too big and powerful. In the United States, Amazon was drawing criticism from across the political spectrum, with calls for it to be broken up. Meanwhile, the European Union was also investigating its practices.
History of Amazon Founded as Cadabra. It is one of the first major companies to sell goods over the Internet and one of the most recognized and respected online businesses. Amazon has grown admirably from its initial beginnings as a small online bookseller to a giant superstore company. During this process of rapid growth, it has incurred significant losses and it becomes more expose to a greater competition and threats. Cutting costs and achieving profitability remain Amazons greatest challenges.
It is often referred to as the online equivalent of Wal-Mart because of its reach and global footprint as well as its aggressive pricing strategies. Amazon can leverage on several opportunities in the emerging markets and can ensure that its global supply chain of networked warehouses deliver substantial value for itself and its stakeholders. Further, Amazon has to rethink its business model of operating at close to zero margins and the fact that the company has not returned a decent profit in the last five years gives it much room for improvement. This strategy has resulted in the company reaping the gains from this course of action and has helped its shareholders derive value from the company. Amazon primarily derives its competitive advantage from leveraging IT Information Technology and its use of e-Commerce as a scalable and an easy to ramp up platform that ensures that the company is well ahead of its competitors.