Amazon case study

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STRATEGIC BUSINESS PROJECT

CASE STUDY

A critical evaluation of using business analysis tools to solve problems within a business: A case study of AMAZON(UK) LTD

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OUASSIM KALLOUL     B00320606

TABLE OF CONTENTS:

CHAPTER I:        4

1.0 INTRODUCTION        4

1.1 Background to the study        4

1.2 Rationale behind the study:        6

1.3 The aim of the study:        6

1.4 The objectives of the study:        6

1.5 Research Questions:        6

1.6 Problem statement of Amazon LTD:        7

1.7 Literature Review:        7

1.8 The Methodology        7

1.9 Structure of the study:        8

1.10 Conclusion        9

CHAPTER II: Case briefe and review of the relevant Literature        10

2.0Introduction:        10

2.1 case brief and literature review        10

2.1.0 History of Amazon UK LTD:        11

2.2 Industry size        12

2.3 Growth rate        13

2.4 Major Players        13

2.5        Situation Analysis:        16

2.5.0 Stretching the stage (2003–2006).        19

2.6 Target Market (2007–2014).        19

2.7 Segmentation        20

2.7.0 Workers.        21

2.7.1 Prime.        22

2.8 Positioning        22

2.8.0 The product results        24

2.9 Proposed Plan of Analysis        25

2.10 Relevant Literature Review        26

2.10.0 Sample Methods        26

CHAPTER III: The Methodology Undertaken for the Case Study of Amazon L.T.D UK        27

3.0 The research approach:        27

3.1 Secondary Market Research:        27

3.2 Reliability:        28

3.3 Validity:        29

3.4 Ethical issues:        29

CHAPTER VI: Results and Discussions about the Case Study        30

4.0 Strategic Analysis:        30

4.0.1 SWOT Analysis:        30

4.0.2 Porters Five Forces Tool:        32

4.1 Current Position Status:        35

4.2 Integrated Assessment of The Analysis:        37

4.3 Strategies of Success        38

4.4 Findings of The Collected Data:        40

4.5 Solutions for The Research Problems:        41

CHAPTER I:

1.0 INTRODUCTION

1.1 Background to the study

Unsatisfied with the general rules of the classic economy that states that the profits are the main factor that influences the value of the stock amazon.com was one of the first influences on the new Internet economy with the help of its dynamic CEO and it's remarkable valued stock.

After the recent technology Renaissance Amazon rapidly changed from the thriving new business into a business in distress some described it as a mere example of electronic economy excess.

Amazon is unique due to its survival strategy that allowed it to maintain competitive advantage and like many of its competitors especially on the Internet platform, after publishing an astonishing annual profit report on January 27th 2004 that shocked the Expectations.

Currently the company is known as one of the most relevant e-commerce pioneers around the globe.

Nearly a decade after Jeff Bezos founded Amazon in a Bellevue Garage he was confronted with the good news that economic analysts are happy about the future of national online stores that gave strong signs for a healthy international expansion.

A Seattle businessman named Nick Hanauer known as an early investor who was the key influence for Besos to move to Seattle in the summer of 1994, nick was certain that the business will be dominant in the future, you clearly stated that few people understood that the reason that they didn't make money was that for the previous 5 years every time there was a trade off between looking more money or growing faster we chose to grow faster, the businessman invested $40,000 in Amazon and now it is valued at 250000000 dollars.

 the argument the graph below shows the thriving process of Amazon after its unfortunate recession between the years 2000 until 2002 and how it is still growing for the next two years.[pic 3]

After the Foundation of Amazon in 1994 Jeff Bezos launched the website in the following July with the business model of book retailing services two massive potential clients using the Internet.

The idea brought the attention of Madrona venture groups Tom Adverg, who invested $100,000 in Amazon at 1995.

Alberg stated that 'even though it was the dark ages in terms of what everybody was doing it worked and it works really well'.

It was also known by the time that Jeff didn't just create a bookshop accessible online he also created a community that made the websites become revolutionary.

In 1996 the year that was considered the first full fiscal year in business Amazon generated 15.7 dollars, the amazing facts is that that number increased by 800% the following year.

In 1997, Amazon added the new music branch that contained CDs and movie videos to the website, the move was considered to be a very wise one that worth the investment and the effort for a successful expansion strategy, after that Amazon added 5 more product categories such as toys software electronics and video games without forgetting the most influential category which is Home Improvements.

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