From my last post, I discussed some key ideas about Amazon and Porter’s five forces analysis model. This week we will review how Amazon deals with their own
environmental opportunity.

ENVIRONMENTAL THREATS AS OPPORTUNITIES

The opportunities for Amazon to neutralize its threats is a key strategy for the organization. They have covered all of their bases. As far as Barriers to entry / Rivalry: Amazon has made it quite difficult to compete in the emerging markets. Substitutes: Amazon is currently advancing in technology in the handheld products and the smart home sector. At some point, there will be no substitutions for their products. Suppliers/Buyers Amazon has numerous suppliers which in turn keeps the prices low for buyers.

OPPORTUNITIES AND INDUSTRY STRUCTURE

Amazon is in a hyper-competitive industry in the retail space. Amazon uses various strategies,  for example, proactive disruptive innovation. They also have the flexibility to change from one strategy to another at a low cost and at any time. Emerging industry: they are one of the leaders in the voiced controlled home base technology, Alexa. Amazon also gets a strategy from network industries. For example, the first mover often becomes a winner-take-all strategy, such as the recent acquisition of whole foods.