Homework SourseDo you agree with that Amazons strategy in regards to porter
Do you agree with that Amazon’s strategy in regards to porter’s five forces?
Solution
For Amazon ecommerce :
So, yes Amazon\'s strategy is well balanced inregards to the porter\'s five forces.
| Porter\'s forces | Strategy | Correct approach |
| 1. Competitive rivalry (strong) | Buying out small competitors, discounts and new innovations to beat competition | Yes |
| 2. Bargaining power of buyers or customers (strong) | So great customer centric approach, and new offer like amazon prime | Yes |
| 3. Bargaining power of suppliers (moderate) | Onboarding but mostly automated, and partnership but fairly neglected | Okay |
| 4. Threat of substitutes or substitution (strong) | Buying off new players, going into new domains, | Yes |
| 5. Threat of new entrants or new entry (weak) | Not much of details, except for slightly bigger players, whom they buy out | Okay |
