JULY 15TH, 2022

AMAZON PROJECT
Luis Emilio Serrano, Rachael Granizo, Roxana Bravo and Mario Blum

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Table of Contents
Section 1: Executive Summary ............................................................................................... 3
1.1 Amazon History .......................................................................................................................... 4
1.2 Strengths and weaknesses .......................................................................................................... 8
1.2.1 Strengths ................................................................................................................................................. 8
1.2.2 Weaknesses ............................................................................................................................................ 9
1.2.3 Opportunities ........................................................................................................................................ 10
1.2.4 Threats .................................................................................................................................................. 10
1.3 Information on the external environment .............................................................................. 12
1.4 Corporate level Strategy .......................................................................................................... 15
1.5 Business level strategy .............................................................................................................. 19
Section 2: Problem statement ................................................................................................ 22
Section 3: Key Decision Criteria ........................................................................................... 23
Section 4: Recommendation .................................................................................................. 25
Section 5: Conclusion ............................................................................................................ 26
Biography ..................................................................................................................................... 27

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Section 1: Executive Summary

The Amazon company is one of the largest business industries in the world with an

outstanding provider of services and products in several countries. Amazon started as a company

that only sold books and notebooks online. Today, Amazon has expanded to such a large level that

it now sells not only books but various products and services. Amazon is a company that works

mainly online. Recently, Amazon has opened smart supermarkets where people can get various

food items more easily and efficiently.

Amazon Inc. offers all kinds of high-end and regular-use products as well. Consumers can

buy any ''type of clothing, makeup, jewelry, gourmet food, toys, books, magazines, movies,

electronic products, pet supplies, furniture, and different household items'' (Yasar, K. 2022).

Amazon's headquarters are in Seattle. The company has several individual websites in most of the

country. On websites customers can call and ask for help from ''software development centers,

customer service centers, data centers and fulfillment centers around the world''(Yasar, K. 2022).

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1.1 Amazon History
Amazon was founded on July 5, 1994, as a website that only sold books. Jeff Bezos is the

CEO of the company. Is an American entrepreneur who played a key role in the growth of e-

commerce as the founder and chief executive officer of Amazon.com an online retailer. In 2020

he had a net worth of more than $180 billion. While still in high school, Bezos developed the

Dream Institute, a center that promoted creative thinking in young students. After

graduating(1986) from Princeton University with degrees in electrical engineering and computer

science, he undertook a series of jobs before joining the New York investment bank D.E Shaw &

Co. in 1990 as a senior vice president - the firm’s youngest- Bezos was in charge of examining the

investment possibilities of the internet. Its enormous potential - Web usage was growing by more

than 2,000 percent a year - sparked his entrepreneurial imagination. He quit his job at an investment

bank in 1994 and moved to Seattle, Washington. Working out of his garage with a handful of

employees, Bezos began developing the software for the site, It sold its first book in 1995.

Amazon.com chose the name primarily because it began with the first letter of the alphabet and

because of its association with the vast south American river, He had a vision for the company’s

explosive growth and e-commerce domination. He knew from the very beginning that he wanted

Amazon to be “an everything store”.

Amazon quickly became the leader in e-commerce. Open 24 hours a day, the site was user-

friendly, encouraging browser recommendations, and searches for out-of-print books. In June 1998

it began selling CD’S and later that year it added videos. In 1999 Bezos added auctions to the site

and invested in other virtual stores. The success of Amazon encouraged other retailers, including

major book chains, to establish online stores. As more companies battled for Internet dollars, Bezos

saw the need to diversify, and by 2005 Amazon offered a vast array of products, including

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consumer electronics, apparel, and hardware. Amazon diversified even further in 2006 by

introducing Amazon Web Services (AWS) a cloud computing service that eventually became the

largest such in the service that eventually became the largest such service in the world. In 2007

Amazon.com began to sell its own handheld reading device called the kindle. a digital book reader

with wireless Internet connectivity, enabling customers to purchase, download, read, and store a

vast selection of books on demand. Amazon announced in 2010 that sales of Kindle books had

surpassed those of hardcover books. That same year Amazon moved into making its own television

shows and movies with its Amazon Studios division. Amazon’s yearly net sales increased from

$510,000 in 1995 to some $600 million in 1998 and from more than $19.1 billion in 2008 to almost

$233 billion in 2018. About half of the company’s operating income in 2018 was derived from

AWS. Two years later Amazon registered record profits, and its revenue in the fourth quarter that

year surpassed $100 billion for the first time. The unprecedented numbers were, in part, caused by

a rise in home shopping during the COVID-19 pandemic. With cloud computing, an organisation

can rent computers, programmers, and security experts from an external provider such as Amazon

instead of maintaining its own data centers. Amazon pioneered cloud computing and became the

market leader.

Bezos ( who has owned the Washington Post since 2013) divined that finding new uses for

Amazon’s burgeoning cloud infrastructure was the key to the company’s future. In 2011, he

emailed several managers, “we should build a $20 device with its brains in the cloud that's

completely controlled by your voice” At other firms, staffers might have dismissed such a musing

as the fantasy of an uninformed boss. At Amazon, stone writes “even the most inconsequential of

utterances from the sagacious chief executive could instigate a flurry of wheel- spinning and white

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paper writing.” If Bezos wanted a cloud-based voice-activated device, Amazon would create one.

Amazon pursued Bezos's idea with extraordinary secrecy Amazon would create one.

Amazon pursued Bezos’s idea with extraordinary secrecy. It acquired three tiny companies

that specialised in making human voices understandable to computers allowing outsides it was

designing mobile phones. Amazon's focus on optimising the last mile experience played a big role

in the company outperforming its e-commerce competitors. The ability to consistently provide

fast and reliable deliveries helped amazon grow a massive base of loyal customers. Amazon prime

is more than just expedites shipping. It’s a subscription service that gives members access to a

variety of Amazon perks. Benefits include free 2-day shipping on eligible items to addresses in the

contiguous U.S and other shipping benefits. Free same -day delivery in eligible ZIP

codes. shipping exclusive access to prime day deals, free movie streaming, and access to other

services

For many shoppers, amazon Prime is a no- brainer for the shipping perks alone. However,

Amazon recently raised its rated from $199 to $139 per year. Month to month rates also increased

from 12.99/ month to 14.99/month. At a time when consumers are tightening budgets, it’s a tough

sell. Amazon prime gaming is a great perk for gamers. Prime Members can go to the Prime Gaming

landing page for exclusive in- game loot, free monthly PC games ( that are yours to keep forever)

and a free monthly twitch subscription. For gamers that remember Twitch Prime, Amazon Prime

you already have Amazon Prime Gaming included in your membership, so go check it out now.

Another PS5 and Xbox Series X drops for its prime members. (they sold out within minutes). All

the drops are exclusive for Prime members. Amazon prime video is one the biggest perks of being

an Amazon Prime member. Prime video offers unlimited streaming of movies and TV episodes

for paid or free trial members in the U.S and Puerto Rico. Alexa shopping prime members have a

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new perk. Amazon’s digital assistant can now notify Prime members of upcoming deals on

products they wish to track. You’ll need to have a newer generation Echo smart speaker or smart

display. Nevertheless, it could be a cool perk for existing Prime members. Amazon prime benefits

Although the cost od admission isn’t cheap, there are many perks associated with an Amazon

Prime membership. For instance, Prime members get 10 percent off on select Whole Foods

purchases. Amazon Prime membership. For instance, Prime members get 10% off on select Whole

Foods purchases. Last October, Amazon announced that Prime members would get free Amazon

Fresh deliveries. Prime members algo get discounts on digital services like FreeTime Unlimited,

which costs $2.99/ month for prime members or $4.99/ month for non-members. And should you

receive an Amazon Prime delivery late, Amazon will try to rectify its mistake. Students can also

benefit from Amazon Prime. If you’re a two or four-year college student with a valid .edu email,

you can get a six- month trial of Amazon Prime Student, which gets you all of the benefits of Prime

in addition to special student-specific deals and coupons. After your trial ends, Prime Student will

cost you half the price of a regular Prime membership for up to four years or until you graduate,

whichever comes first. Prime Student membership now comes with a deal on Music Unlimited,

the paid streaming service that typically costs $7.99 per month for Prime members. Those college

students will get the option to add the 50- million track library of unlimited which beats Prime

Music’s 2 million count) for $0.99 extra. Deals and discounts, on compliments of amazon family.

Kindle First: early access for members in the U.S to download a new book for free every month

from the kindle First picks.

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1.2 Strengths and weaknesses

1.2.1 Strengths

Amazon has a very good advantage and strength and that is to be the leading retail company

in the world. The company stands out for several strengths: it leads and is competitive in its costs,

it contrasts with all its competitors, and it has a concrete and effective approach. This business

strategy that Amazon had helped the company to have the high profits, demand, and shares that

have given it the great value and power that Amazon has today. Amazon has become a strong

brand name and according to Interbrand’s Global Brand Ranking 2021, ''Amazon is ranked at #2

position with a brand value of $249 Billion'' (Maggy, H. 2022)

What Amazon does best and what it stands out for is having a great competitive advantage

among all the rival companies it has. The company flows and is managed a lot by electronic

commerce and social networks. Amazon being an internet platform, its scope and usefulness are

greater. People see Amazon as an easy and reliable platform to use that increases competitiveness

in the market. All this has created another strength in Amazon which is to be recognized, loved,

and enjoyed by consumers around the world. Amazon became so well known and loved that it

opened many doors to different markets in the world. Today, Amazon is at such a high level that

it is beyond the reach of many other e-commerce companies. When people think of buying online,

the first thing they think of is using the Amazon platform, and it is more difficult to think of other

e-commerce platforms as good and reliable as Amazon. Thanks to the high recognition and high

income, Amazon has been able to develop a logistics and distribution system that helps improve

performance and customer experience.

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1.2.2 Weaknesses

Amazon has great strengths, but it also has some weaknesses. One of the business strategies

that Amazon included in the company was diversification. This means expanding to different

countries, markets, and the public in the world. The bad thing about this is that Amazon has

diversified too much, which means it has caused its focus, online book retailing, to drift entirely

and open into newer areas of focus. Opening to new areas has its good and bad points. Although

this is a good business strategy to get more reach in the market. Amazon must be aware that it will

lose its strategic advantage in being strong in its core area of book retailing, and as it opens into

new areas, it moves away from its core competition by losing focus.

Another weakness that Amazon has is the free shipping that it offers its customers. It may

be a good strategy to keep your customers with them, but you risk losing your margins. This means

that the company may no longer be able to optimize the costs of its products due to this strategy

of not charging for shipping. Some business analysts and business and technology experts argue

that Amazon operates on near-zero-margin business models that have severely affected its

profitability. The company may have great income, but it does not mean that everything is for the

benefit of the company.

Finally, many people still do not trust technology. They do not like to put their data or the

data of their cards on platforms because they think that they can steal them or use their information

for illicit acts. Amazon has already faced several problems with the unfair use of third-party data.

If any violation of the law is found based on the use of third-party apps, ‘‘Amazon can be fined up

to 10% of its 2019 annual revenue that is about $280 Billion’’ (Maggy, H. 2022).

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1.2.3 Opportunities

Amazon, being a company that works mostly online, has several opportunities that it can

use in its favor. As said before, people have always been concerned about shopping online or the

security that it means. Amazon could demonstrate its security and reliability to its customers and

create greater respect and security between the company and the customer. This would help the

company improve its margins since it allows it to take advantage of using its payment gateway.

Another opportunity that Amazon has managed well is the use of its own brand, instead of

using other companies or reshipment site for third-party products. This can increase the number of

offers. It allows the company to have more products under storage knowing that they will be able

to sell everything under their brand and have more income for it.

Finally, one of the best opportunities that Amazon has been able to use is the recognition

of its brand. Amazon has managed to expand its name globally. This opened more sites for the

company in the global markets, which gives them a huge advantage in the e-commerce retail

market, making them super competitive. In addition, having such a recognized name has allowed

it to expand beyond e-commerce, being able to open several physical stores in several malls and

recently opening its own smart supermarket.

1.2.4 Threats

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 Although Amazon wants to assure all its customers, one of the worst threats that Amazon

has is the great number of cases of identity theft and piracy that many consumers have had when

making buying online. The fear of people not being scammed, stolen, or doxed seriously threatens

the growth of Amazon. To get out of this, Amazon must look for the most reliable and safe way to

demonstrate to all its clients that the use of its platform avoids all kinds of identity and information

theft on its credit card. You must guarantee your clients' privacy and safety above all costs.

According to the Financial Times Research, ‘‘Amazon has delegated thousands of fake

productions and over 20,000 fake 5-brash reviews from its top reviewers’’ (Maggy, H. 2022)

Amazon has suffered several threats to be wrapped up in several controversies. For

example, due to the regulation of governments, the company cannot make free shipping or cannot

send products to certain countries. This has bothered many of its consumers who have created bad

reviews. The brand of boycotting other brands has been accused and selling products that should

not be a book that promoted pedophilia. But what most marked the company was the accusation

of being a company that abuses and exploits the human rights of its workers. All that has created

doubts about Amazon's reputation, and several economic and legal risks.

Finally, Amazon has several threats when facing more competitive retail companies

because they are more agile, and skilled and have a business strategy more focused on a single

area than Amazon which is very diverse. This threat makes the company not neglect its main

approach and its local market.

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1.3 Information on the external environment

In the external environment, we can denote that reference is made to the economic,

political, legal, sociocultural, demographic, technological, and global factors that could at any

given time affect a company, in any way, in this case, Amazon.

Amazon, due to the business idea and perspective established by Bezos, was conceived

from an international perspective, because although it is true that its beginnings were the sale of

books exclusively, the means by which they did so was the Internet, a network that ultimately it

would become the link between all the countries of the world, with its different repercussions in

multiple aspects. However, Amazon was not only satisfied with the sale of books, because in these

more than twenty years it has diversified its portfolio of products/services in a brutal way, offering

a wide catalogue that can range from third-party logistics services to its service Star Web Services.

On the other hand, one of the determining factors in the success of Amazon's internationalisation

has been the digitization of the economy and society.

It is important to note that Amazon's turning point in terms of going from a good company

to a world leader began at the beginning of the second decade of the 2000s when the diffusion and

easy access to new technologies settled on the national scene.

They have worldwide omnipresence, meaning a world reference company, a worldwide

presence is needed, that is, to be present in most countries. Amazon has a notable physical presence

in America, Asia, and Europe, necessary to maintain good logistics, although with the use of the

Internet its presence is global, being a store open 24 hours a day, 7 days a week.

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 Market dominance and a benchmark in the sector, being the innovative company in this

section, Bezos' firm assumes the role of the first adopter, which will set the guidelines in the sector,

a particularly peculiar fact since it conditions the possible strategies of potential competitors

Entering a macroeconomic environment, Amazon is an extremely successful company,

with high numbers in its profit, in such a way that with some analysis it could affect the US

economy. Online retail consumer companies such as Amazon have become an important force

within the global consumer retail market. Its participation continues to grow rapidly in the United

States, which has led a growing number of economists and analysts to study its implications and

possible impacts on the price level or inflation.

1.3.1 Political Factors Affecting Amazon’s Technology and Services Business

Amazon.com Inc. operates alongside political influence. This aspect of the PESTEL/PESTLE

analysis model focuses on governmental activity and its effects on businesses and their remote or

macro-environment. In Amazon’s case, the following political external factors are important in the

development of the e-commerce industry:

1. Political stability of developed countries, especially the U.S. and European countries

2. Governmental support for e-commerce

3. Increasing governmental efforts on cyber-security

1.3.2 Economic Factors

The performance of Amazon depends on the situation of the economies where it operates

its online and offline businesses, the economic factors in Amazon are important, the economic

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stability of developed international markets, for example the United States and European countries,

in turn the great power that is China, thanks to the economic development of these countries

generates a probability of success in sales for amazon, for example, the increase in disposable

income in developing markets can boost the financial performance of the company, however, the

China's Potential Economic Downturn Threatens Amazon's Business, China is one of the largest

markets the company hopes to increasingly penetrate.

1.3.3 Sociocultural factors

The impact of socio-cultural changes or trends on the company's performance as a leading online

retailer and provider of information technology goods and services. Considering such trends in the

remote or macro environment, Amazon faces the following external socio-cultural factors:

4. Increased wealth disparity; The growing wealth gap refers to the widening gap between
rich and poor in many countries.

5. Rise of consumerism in developing countries

1.3.4 Legal Factors

6. Product regulation on the rise, The rise in product regulation is seen as a result of societal
demands on consumer safety and customer safety, this external factor creates opportunities
for Amazon.com Inc. to step up its efforts to reduce the sale of counterfeit products on your
online retail website

7. Change import and export regulations.

8. Increase in environmental protection regulations in companies

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1.4 Corporate level strategy

Amazon.com, Inc (AMZN) is one of the most influential multinational technology

companies in the world. In turn, its creation marked a before and after in how people consume the

Internet. Amazon revolutionized the industry of buying and selling products and services. The

company manages the purchase from merchant fulfillment, then customer services. At the same

time, it manages a high number of products in the catalog and manages affordable prices to be

competitive. However, Amazon not only sells products but through Amazon AWS has generated

more income than e-commerce distribution itself. AWS consists of a Cloud computing division,

that provides processing and storage solutions for government, customers, and companies.

Amazon has been able to diversify its approach to have a greater flow of profit in different market

niches. Its growth is due to the correct management of advertisement, innovation, and allowing

users to sell their own products in a third-party marketplace. However, this massive growth that

the company has had is also due to the corporate and business strategy for them to be able to enter

and compete in different markets.

The Amazon corporate strategy is based on concentrating its company on diversifying its

products and services. This strategy focuses on reaching more value for the firm, growing the

organization through diversification for maximizing profits, and reducing spending. Moreover,

Amazon wants to stand out as a firm with technological capabilities for business success as well

as to maximize its customer loyalty with lower prices and technological innovation. Jeff Bezos

company is the largest online retailer in the world and therefore they plan a strategy to incorporate

the businesses into other markets to be competitive and profitable. Amazon emphasizes its

corporate strategy by three main points: diversification, competition, and innovation.

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 Amazon is an example of how a company should diversify its approach to attract new

customers and lower the risk of entering new markets. The firm started with a wide variety of

books, but when it entered e-commerce, it realized that it could sell more products to more

consumers in a comfortable and accessible manner. In this way, Amazon stopped depending on

only one product and focused on having more options for people. Amazon manages a very wide

catalog of goods, which allows users of any market niche to purchase their products on the

platform. However, the company realized that the purchase and sale of products did not allow it to

generate greater growth, which is why it entered a new technological market. Furthermore,

Amazon created “Amazon AWS” which is a cloud where companies, governments, and people

can process and store information. This service has generated higher income for the company since

more users entered the platform. Moreover, Amazon has incurred a new market such as the

streaming service. With its Amazon Prime platform, users can enjoy movies and series for a

monthly subscription. Even though Amazon has a lot of competition, the quality and service they

offer mean that they do not take as many risks to enter new markets.

Corporate strategies serve to enter a new market and therefore new competitors. Amazon

having a wide range of services and products always faces different companies that offer similar

services. Amazon, by entering the streaming service, faces Disney, Netflix, HBO, and Hulu,

among others, thus generating a strategy that differentiates the brand from its competitors. One

strategy that favored the company is that by having Amazon Prime, you not only have access to

series or movies but also discounts on purchases, shorter delivery times, and shipping fees. That

is, Amazon gave an extra benefit to its users so that they prefer it. The company understands that

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the competition is very broad, and for that reason, Amazon governs its competition policy on three

principles, range of products (catalog), price, and comfort. With these three points, Amazon

generates that consumers choose it and can grow through diversification and competition.

The main reason Amazon has been able to remain competitive and globally recognized

since its inception in 1994 is innovation. The company has been able to manage a correct corporate

strategy to attract other markets with new consumers and different interests. Amazon has innovated

in technology with the production of Alexa, an intelligent assistant, Kindle, which revolutionized

the sale of books, social media, and streaming services. Amazon has created campaigns on social

networks that have allowed many people to get to know its brand and the products it offers.

Through advertising, Amazon has been able to persuade potential buyers through new technology.

In addition, Amazon has also generated an influence on its customers with Amazon Prime, a

subscription service that gives you benefits within the platform. Its benefits include a faster

delivery time, which generated a great innovation in the issue of order delivery coordination. By

using this benefit Amazon appeal to "instant gratification" where consumers make impulsive

purchases and allow you to sell more products.

Through the corporate strategy, we can understand how Amazon has been able to get to

where it is and what measures it implemented to attract new markets. The company has been

governed by three main objectives: to diversify its production, to be more efficient to compete

with other companies, and to innovate to attract new consumers. The plan presented by Amazon

is an example of how a company can grow not only in the purchase of products but also in the

benefits and services that it can provide to consumers. To sum up, the corporate strategy has

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strengthened the brand and has allowed it to enter new markets, thus generating more profit for

the company.

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1.5 Business level strategy

Amazon's business-level strategy focused its point on how a company plans to compete in

a market. The strategy matches the same path as the cooperative plan since it also wants to achieve

diversification and innovation in the company. Jeff Bezos implemented new policies in the

company to be productive in the market by influencing the customer's preferences and making it

easier to buy and receive the purchase. Amazon considers that the business must follow some

principles to achieve a better opportunity in the market and prepare itself for competition. The firm

encourages customer obsession, passion for invention, operational excellence, long-term thinking,

entering new niches and segments, strengthening the Amazon ecosystem, and focusing on Amazon

leadership values.

Among the characteristics of a business plan, the creation of value for the consumer is one

of the most important things in Amazon. One of the main factors why it has grown in the best way

is due to its intense monitoring of what the consumer wants or needs, they call it "customer

obsession". The company believes that teamwork makes the company more productive and

efficient, and also recognizes that in order for activities to be better, each employee is needed to

provide the best possible service. This strategy that Amazon implements ensure an evolution in

the aspirations of the company since they focus on making the consumer feel good during and after

the purchase. Customer service stands out among the competition, as they seek to help the

customer with the best quality, more benefits, and services. Amazon's evolution from an online

bookstore to one of the world's largest retail companies took time and a clear focus on business

innovation. Amazon no longer only sells products but also offers services to its customers that help

add value to the company. Amazon's best investment was building new technology and platforms

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to improve consumers' lives. It works for a data storage platform, streaming services, fast delivery,

and others. Amazon has managed to manage these benefits so that consumers choose them.

Amazon's success is since they want customers to feel part of the business and that they can

improve the quality of service. In addition, its focus on innovation as a fundamental piece to create

more opportunities in the markets is one of the best ideas to improve the company's performance.

The business strategy focuses on cost leadership and providing the best quality for the

lowest price to the consumer. Another of the most important features of Amazon's plan to grow

and improve the performance of the company is through "operational excellence". This feature is

mainly focused on supporting the development of workloads in an effective way that provides a

better user experience. Mainly, this operation can be visualized in the Amazon cloud (AWS), since

it provides greater performance in code operation (engineering), better designs, and allows for a

better workflow. Amazon wants to have the best possible quality and compete against companies

like Google Drive, Microsoft, or Dropbox. The company shows its interest in giving you an

organization, preparation, operation, and correct development of operations. In this way, you can

have clear business objectives and a more efficient operation.

However, this is not the only characteristic that Jeff Bezos has promoted in the company,

but there are other more interesting ones such as long-term thinking. He thinks that a company

with strong corporate values and efficient leaders can make progress by thinking about the growth

of the consumer culture. The company seeks to have a broad view of its possible movements. That

is the company bets on creating innovative projects without expecting to have results

(economically) quickly. Amazon seeks to have a manageable investment to improve and grow as

a company.

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 Amazon is not far behind when a company seeks to innovate and promote itself with new

technologies. The strategy consists of having a product for each public. However, that is not

usually that easy, but Amazon seeks to have the largest number of goods within the catalog for

each market niche. Through social networks, Amazon has been able to promote itself through

influencers. The growth within these platforms is beneficial for each company because it is where

most people see what they want to buy. That is why the company has moved to discover new

audiences by delivering products by promoting them on different platforms. The creation of

campaigns, events, and content creation has been one of the reasons why Amazon remains one of

the largest companies in the world. Another strategy is to create an ecosystem in the company

through technology and subscriptions. Amazon presents various products as intelligent assistants

and also offers important benefits for any user. The company focuses on giving value to customers

and letting them know that what they are buying is beneficial to them. In other words, Amazon

seeks to have added value and create awareness in the public that its products are of high quality

at a lower price and with more facilities and benefits.

Through the business strategy, we can understand the focus and competitiveness of the

company in the market. The strategies it proposes offer value to the business plan as they seek to

put the customer at the center of all operations. At Amazon they want the customer to feel good

during and after the purchase to find a consumer who is willing to buy again. In addition, the

company has shown that by diversifying their activities they have been able to innovate and have

a long-term environment that has benefited the company's profit. Furthermore, Amazon is looking

for new market niches that can enhance and benefit the company in order to find new investments

and a new public that is willing to buy its products or need its services.

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Section 2: Problem statement

Amazon has had a growth that not many companies in the world can say they had. They

have had various revenues, new shares, new investors, and various other factors that have made

Amazon have some impressive growth over the past few years. According to Adlucent, Amazon

has "approximately 44% of e-commerce sales in 2017 and about 4% of all retail sales in the US"

(2019)

Amazon has been through quite a bit. It has a very long history where it has demonstrated

strengths, weaknesses, opportunities, threats, and great business strategies. Amazon is like a

successful company that today is unbreakable, but it wasn't always like that. The Amazon company

had several problems to face to get to where they are. The company had some major problems to

deal with.

Starting in the early days of Amazon, consumers viewed the Amazon platform as very

complex to use. People found it difficult to learn how to use the platform and all its gadgets. People

didn't understand how to list their homes and check shipping options, they didn't know about

renegotiation fees, and various issues that gave them bad reviews in the first place.

Another problem or challenge that Amazon faced in its beginnings is that it did not have a

guaranteed return. They took quite a few risks. The company would depend a lot on the sales they

would have, their shipping costs, and raise you as strong competition in their area of focus.

Amazon's profits were very varied, and they did not know how they would remain in the market.

It was quite a challenge for the company to accurately analyze and know the profitability of the

market. Amazon caused many doubts. This caused many vendors to doubt whether it would be

profitable for them to do business with them or not.

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Section 3: Key Decision Criteria

Amazon despite going through all the challenges and problems it had. They knew how to

make good decisions and strategies to get out of their problems.

Amazon could be complex to use at first, but the company knew how to unleash its

potential, help its customers, and move on. Most companies that try to compete with Amazon

create the same service, but they don't know how to capitalize on their true potential in the market.

These companies, being new, do not know where to start or how to manage their consumers.

Amazon knew how to deal with its beginnings and took good business strategies that helped them

get out of the complexity that people thought. They took advantage of the resources they had like

Amazon's Boost with FBA and its seller education channel. These help methods made it easy for

all your buyers to know how to use your platform and realize how easy it was. Finally, Amazon

created a helper method that allows its sellers and consumers to contact people from the company

who help them with any inconvenience they may have.

Perhaps at the beginning, Amazon took many risks and did not know if all the decisions it

made would be profitable. But thanks to the fact that he knew how to take good strategies, they

managed to be very successful. The company knew how to give customers 3 fundamental things:

good products, good prices, and good and fast delivery of what they ask for. Customers are happy

and will continue to buy if they find all the products they want. That's what Amazon did, it gave

them a wide range of products to choose from. But not only does it offer them the products they

want, but it also offers them at a very good price and without shipping costs. Lastly, Amazon

delivers all these products as quickly as possible. Customers, having such a good experience with

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the company, continue to buy with them, and continue to share with friends and family how good

the company is.

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Section 4: Recommendation

Amazon has high quality in everything it has made. It is almost impossible to be able to

recommend them to do something new because they have already done almost everything. Good

products, good prices, fast shipments, good business strategy, great diversification, good stores, a

good relationship between consumer and company, and much more.

The best thing about Amazon is that despite already doing many things well, the company

is still looking to evolve and provide better things. Some tips that we think we could give Amazon

are small details such as the quality of images on their platforms. Sometimes when you search for

a product on Amazon.com, the product image is not in the best possible resolution. This sometimes

makes it difficult when deciding to buy a certain product. An example is with clothes, since you

can't see the image of the garment at a good resolution, you decide better not to buy it. The text

inside the boxes and the zoom capabilities are also important. Being able to analyze and see every

detail of the product is very important for consumers, and sometimes some products do not have

that option.

As we said before, they are small details that can improve the platform, but they are not

things that harm the company. Sometimes the little details are what many people value. Having

those small changes in the quality of images and text can help create a feeling of gratification for

the consumer.

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Section 5: Conclusion

Amazon managed to become one of the most recognized and loved companies by

consumers. They managed to create the ''perfect online market'' for consumers. Thanks to knowing

how to navigate the market and create good business strategies, the company became the best retail

option for a market business. Today Amazon is known for having the best prices, the best products,

and the fastest delivery. According to the company Sellics, Amazon achieved "a current market

share of 50% in the United States and one of the best growths too" (Jordan, F. 2020). Amazon had

a rocky start, but as Amazon has progressed, it has become an increasingly reliable, secure, and

recognized brand in the world of online sales.

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