Amazon.com Inc. Retailing Giant to High-Tech Player? Case Study Help
The Amazon Inc. has huge investment in Research and development department. They are investing a lot more than their competitor. Instead, of investing in research and development company should invest more and more in developing local stores. The Amazon biggest threat is change in its customer behavior. The customers are more interested in buying from local stores than online retail shop. This will directly affect the company’s revenue in near future. If Amazonstarts investing more in developing retails shops than research and development depart then it will positively affect the company’s growth not just in short-term but in long-term as well. The company will succeed in an increasing its market share and it will attract the new customers.
The Amazon Inc. financials show increase in operating cost is due to huge investment in technology infrastructure. The Amazon Inc. is among one of the leading retail shops in the world and it won’t be possible for them to operate without investing in technological development. But at this stage when the company is at its peak stage there is no need of investing that much in technology infrastructure. They should work on different segments, like introducing different product lines or investing in acquiring their competitor to eliminate the risk of being fail in capturing or attracting the customers.
Recommendations
The Amazon Inc. is a successful international brand. The company’s current financials show declining trend in its net income. Some of the solutions have been discussed above like; instead of Kindle hardware introduction of their smartphones which will allow customers to buy, download and read books online. The company needs to invest more in expansion to capture the market. Instead of investing in R&D they should utilize this amount in expansion.
Amazon has huge customer base line and they need to protect their data and provide full security to its customer. A minor mistake will harm the global chain of the company and they will lose the customer trust in just a few seconds.
The change in customer behavior like; preferring shopping from local stores than shopping online. The company have to roll themselves according to customer needsto grab the market and remain competitive.
Appendices:
Appendix 1: SWOT analysis
| Strength | Weakness |
| Low Cost structure | Diversification |
| Opportunities | Threat |
| Online payment system | Hacking of data |
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