Analysis Amazon and Comparison with the Alibaba
Industry Life Cycle Analysis
Amazon is also known as Amazon.com, Inc. The company was established in the year 1994. It is a multinational electronic commerce company. The company was established in the year 1994. The company is an America based company. It is a public limited company. On the other hand, Alibaba is considered as a popular Chinese e-commerce company. The company is trying to offer differentiated products at the economic price level. Amazon is considered as one of the leading companies within the global e-commerce industry. Amazon is the leading e-commerce organization within the global e-commerce industry. However, the company is facing real challenges and competitive threats from Alibaba. Both the organizations are focusing on the effective business management approaches. However, the industry life cycle analysis will be conducted in this part of the report in order to determine the international trade and strategies adopted by the majority of the companies.
The industry life cycle framework is regarded as an important strategic management tool. This particular strategic management tool can assist the organizations to determine the actual business position considering the business growth and profitability of the companies. The industry life cycle framework is comprised of four important elements, such as introduction, growth, maturity and decline. In the introduction stage of the industry life cycle, the organizations used to face low production volume and low demand of the products. In the growth stage, the organizations generally face characteristics of the low production volume and high demand of the products. In the growth stage, the organizations used to face the characteristics of the high product demand, high production volume and high market saturation. In the decline stage, the companies have the characteristics of the low product demand and low price.
In terms of the industry life cycle analysis, it can be stated that Amazon is placed in the maturity stage due to several important characteristics of this particular stage in this particular stage of industry life cycle, the products, services and brand name of the company are well known among the important stakeholders of the organization (MGrath & O’Toole, 2014). This is acceptable that Amazon has business presence in several countries including the emerging as well as the developed nations across the globe. In addition, the management of Amazon is also focused on the offering and distribution of the differentiated products. The product range of Amazon includes different types of departmental goods, retail goods, electronic appliances home appliances, books, electronic gadgets etc. Previously the organization is focused on the offering of the books through online mediums (Loveridge & Mok, 2012). Now-a-days, the company used to offer different types of products and services. Most importantly, the organization used to follow the B2C process or the business to customer process in order to offer the goods the target customers. In this contemporary era, the company has succeeded in the establishment of B2B approach. The company has improved or increased the level of the offering of the goods and services as the firm is trying to deal with the business clients. The major reason behind the adoption of the B2B approach is to gain positive and competitive advantages over the potential industry competitors. Most importantly, the organization is going to attain a strong business growth in different types of industry markets across the globe through the consideration of the offering of differentiated products and services to the individual customers as well as business customers (Ommani, 2011). However the management of the company also can take some unique approaches in the business operation process to transform its industry position from the maturity level and growth level.Order Now
