Running head: AMAZON INC.

Amazon Inc.

Student’s Name

Institution Affiliation
AMAZON INC. 2

Amazon

Strategic Resources

Amazon Inc. is an American technology company that deals with cloud computing,

artificial intelligence, and e-commerce. It is regarded as one of the biggest multinational

companies in the world. Its strategic resources include its e-commerce platform, artificial

intelligence, and digital streaming framework. These strategic resources are vital in helping the

company operate in an environment that is competitive and ever-growing. The resources have

evolved through innovation and robust improvements over the past two decades. These resources

provide Amazon with a competitive advantage as they are state of the art and reliable

(Onyusheva & Seenalasataporn, 2018).

Amazon’s Intellectual Property

Like major technology companies across the globe, Amazon has a wide range of

intellectual property. These include copyrights, trademarks, rights, permissions, and patents on

different service and product innovations. The inability to protect intellectual rights would

expose the company to competitors who would use the information to advance their products or

services (Onyusheva & Seenalasataporn, 2018).

Amazon’s Value Chain

Inbound Logistics

Amazon’s inbound logistics include vertically integrated suppliers, quality control,

decentralized fulfillment centers, and item replenishments. These activities also include

suppliers, who provide products to the company.

AMAZON INC. 3

Operations

The operations of the Amazon center on artificial intelligence software, marketplace

operations, packaging, and device and content creation.

Outbound Logistics

Outbound logistics for Amazon include invoicing, order handling, order fulfillment, and

dispatch services.

Marketing and Sales

Amazon engages in marketing its service in an attempt to increase traffic. Its marketing

and sales department engages in segmentation, customer service, order and customer tracking,

handling of returns, Amazon Prime, and being the Earth’s most customer-centric company.

Service

The company’s main service is to deliver products to customers through its e-commerce

platform. It also offers warranty and support on its marketplace together with education and

training to its customers.

In terms of financial performance, Amazon’s global sales for 2018 increased by 31% to

$233 billion. Its net income increased to $10 billion. The Northern American region accounted

for 40% of the company’s global sales (Onyusheva & Seenalasataporn, 2018).
AMAZON INC. 4

SWOT Analysis

Strengths Weaknesses
 Iconic brand  The model can be imitated
 Customer-oriented  Product failures and flops
 Focusses on differentiation and  Tax avoidance
innovation  Limited brick and mortar availability
 Engages in cost leadership
 Large merchandise selection
 A higher number of acquisitions
 Superior logistics and better
distribution system
 More acquisitions Threats
 Expand physical stores and operations  Lawsuits
 Backward integration  Cybercrime
 Imitation
 Aggressive competition

Source: (Kaplan, 2019)

AMAZON INC. 5

References

Kaplan, M. (2019). Amazon Posts Stellar 2018 Financial Results; 2019 Not as Bright | Practical

Ecommerce. Retrieved 3 November 2019, from

https://www.practicalecommerce.com/amazon-posts-stellar-2018-financial-results-2019-

not-as-

bright##targetText=Marcia%20Kaplan,income%20increased%20to%20%2410.1%20billi

on.&targetText=Amazon%20reported%20its%202018%20fiscal,financial%20results%20

on%20January%2031.

Onyusheva, I., & Seenalasataporn, T. (2018). Strategic analysis of global e-commerce and

diversification technology: The case of amazon.com Inc. The Eurasians: Journal on

Global Socio-economic Dynamics, (1 (8)), 48-63.