What stood out to me in this week’s reading was how much a company’s success depends on understanding what is happening outside of its own walls. Amazon is a good example of it because it has to monitor customer expectations, new technology, goverment regulations and competitors across several industries.
Porter’s Five Forces shows just how much pressure Amazon faces. Customers have strong buying power because they can easily compare prices or shop with Walmart, Target and other retailers. Competition is also intense because Amazon competes in retail, cloud computing and streaming. It recently just added shipping to it’s line as well. At the same time, entering at Amazon’s scale is difficult. A new competitor would need a trusted brand, advanced technology and a massive delivery network.
Amazon reduces these pressures through fast delivery, a large product selection and services like Prime and AWS. Its investments in drones are another example of how the company uses technology to stay ahead, although regulations and safety concerns could slow that growth. Overall, Amazon’s size gives it an advantage but it still has to pay close attention to competitors and changes in the external environment.
From Cart to Cloud 
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