“To build a place where people can come to find and discover

anything they might want to buy online"

•The nature of this company thoroughly relies on technology and in result they spend 8 million dollars annually on it.

•Amazon’s technological expertise is one of the key reasons for their favorable position.

•Free shipping, package tracking and personalized shopping has allowed Amazon to reach out to customers.

•12% of the annual expenditure is spent on marketing yet only 9% of the retail revenue is received.

•Could be attributed to targeting the wrong demographic or advertising in the wrong places.

•Employee relations are strained as they threaten to unionize which would be unfavorable for Amazon.

•The online retail industry had grown by 58% from 2004-2005

•Urbanization is a major contributing factor for allowing technologies to reach a large number of people

•In the United States 90% of American citizens have public access to the internet

•96% of elementary children and high school students require internet for educational purposes

•Online hackers may access a computer file within a company domain.

•Last year, thousands of online credit card theft recorded in the United States and many more were expected just not recorded.

•Storms restrict the ability to connect to the internet

for people with slow connections.

•Storms could destroy cables, which are essential

for internet connect in an area.

Strong competitive forces:

•Rivalry with competing online retailers

•Attempts by other companies to win customers over to substitutes

•Bargaining power held by buyers

Weak competitive forces:

•Bargaining power of suppliers of inputs

•Potential entry of new competitors