Expansion of brick-and mortar business


Discuss the below:

Complete a project topic in which you present your company and give a brief introduction to the company. Present some basic information about the size of the company, its history, and how it is organized. In addition, present some information about the corporate social responsibility (CSR) of the company. Does the company follow Friedman's or Carroll's view of social responsibility? Your project topic should be at least one page in length, double-spaced, and in 12 pt. Times New Roman font. To complete this assignment, a minimum of two reputable sources must be used, cited, and referenced. Use APA style

OPPORTUNITIES

There are a number of opportunities that are available for Amazon. This include

• Expansion of brick-and mortar business -Amazon has an opportunity to open more physical stores in order to effectively compete with against larger retailers such as Walmart

• Expansion into emerging economies -Amazon also has an opportunity to expand its operations in emerging markets including China, India and Russia. This can give it an opportunity to grow its revenues and profits

• Backward Integration - Amazon can leverage on its extensive reach and brand to sell its private labels. This will increase its margins and boost profitability.

• Rolling out its own payment system -Amazon has an opportunity to roll out its own payment gateway. This will enable the company to scale up given that security of financial transactions is a top concern among consumers

• Expansion into grocery sector - Amazon has the opportunity to leverage on its swift delivery to market groceries. Freshness is a key consideration among consumers and the company can leverage on this to grow market share in the grocery category.

• Acquisitions - Amazon has an opportunity to grow by acquiring small companies so as to decrease the competition it faces and benefit from the specialized capacity of the companies.

• Diversification - As a technology company, Amazon has an opportunity to diversify into other sectors including cloud computing and robotics in order to be responsive to the dynamic business environment.

• Technological changes - Shifts and advances in technology provide Amazon with an opportunity to improve its offering to customers such as in faster delivery.

• Globalization - As companies go increasingly multinational, Amazon has an opportunity in integrating with its supply chain partners to serve customers all over the world.

• Sustainability - Amazon has an opportunity to integrate sustainability in its supply chain in order to become a socially responsible and ethical company. THREATS

Amazon faces a number of threats including:

• Cybercrime- As an online retailer and internet company, cybercrime poses a significant threat to the operations of the company. It must adopt stringent measures to counteract this threat.

• Easily imitable business model -Amazon's business model is also easily imitable. A number of online stores modelled on the company's model have sprung up and could eat into its market share.

• Competition- Amazon also faces increasing competition from established retailers. This include Walmart which is improving its online presence. This could pose a significant threat to the company's profitability.

• Legal challenges - Amazon has faced a number of lawsuits from publishers and its rivals due to its aggressive pricing strategies.

• Low entry barriers of the industry - Low entry barriers into online retailing pose a significant challenge on the sustainability of its ecommerce building. Also, it can result in price wars that erode margins.

• Government regulations -There are no clear jurisdictional regulations to govern ecommerce across borders and this can potentially affect the company's forays in overseas markets.

• Trade tariffs - Trade tariffs aimed at making local companies in markets such as India and China can affect the company's profitability by taking market share.

• Tax avoidance issues- Amazon has elicited negative publicity over tax avoidance in the United States and in the United Kingdom. This can affect its brand in markets where it generates most of its revenues.

• Fluctuating oil prices - The company also faces the threat of fluctuating transportation costs due to volatility of oil

• Financial slowdown - Economic cycles also present a challenge to the company as slowdowns can result in subdued demand which affects profitability.

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