E-Commerce: The Amazon Company’s Analysis

Amazon’s position in the industry

Amazon company is a leading multinational technology organization based in the United States which has heavily invested in matters related to artificial intelligence, digital streaming, cloud computing, and e-commerce. It serves as one of the biggest Tech companies in the US information technology industry, alongside other organizations such as Facebook, Microsoft, and Apple (Kargar, 2018). The company has a well-established IT system that has enabled them to outdo major competitors such as Walmart and attain a higher position in its market capitalization. The company is also the largest internet company in terms of revenue globally, with efficient live-streaming platforms and AI provision (Kargar, 2018). The company has also invested in the distribution of various streaming and downloadable content through its Audible subsidiaries, Twitch, Amazon Music, and Amazon Prime Videos.

Amazon’s Business Strategy

Amazon has adopted an efficient business strategy that consists of an emphasis on investing in excellent technological pals, enhancing their web services through realizing fulfillment capacities, and securing their innovations and inventions by using patents. The company has adopted an excellent patent portfolio, with its biggest share located in Artificial and Logistics intelligence (Kargar, 2018). However, initially, the company had established a fair share of E-commerce applications and media entertainment that enabled them to acquire many customers globally, thus acquiring a greater market share. According to studies by Kargar (2018), it was revealed that Amazon has been filing patents for cloud computing since 2010 and has currently established the biggest cloud computing systems as compared to the majority of their competitors, such as Microsoft.

Amazon’s Social Media Marketing

Being the world’s leading online retailing shop, Amazon has invested in the Digital Marketplace through its efforts in social media sites to promote its services. Amazon uses its primary Facebook account to market its commodities and enhance sharing community content sharing (Moore & Tambini, 2018). In addition, the company uses Twitter to showcase various products as a marketing tool for enhancing service delivery in the e-commerce market. Similarly, Amazon uses Instagram to promote sharing of high-quality content videos and images (Moore & Tambini, 2018). They make use of various stories, such as swipe-up links and bespoke graphics. Throughout its social media sites, the company has adopted various social media profiles for all of its owned services and brands.

Amazon’s Web Service Resources

The Amazon virtual private cloud largely aims at establishing AWS resources that will help to provide isolated virtual network systems. With the adoption of the resource, Amazon has been able to acquire complete control over the virtual network. The Amazon Simple storage service, on the other hand, has enabled the company to offer high performance, security, and data availability (Swedha & Dubey, 2018). The AWS developer content is used to enable customers to experience world-class content. The storage gateway, on the other hand, provides premise access to limited virtual cloud storage systems (Swedha & Dubey, 2018). On the other hand, the AWS direct connect helps to establish a dedicated set of network connections for Amazon web services.

Amazon’s Competitive Advantages

Amazon has been able to acquire a higher competitive market in the global market by focusing on aspects related to operational strategies. The company has invested in practices that enable focus on customer needs, customer differentiation, and ensuring lower cost of leadership (Sadq et al., 2018). The lower cost of leadership is based on Amazon’s strategy of differentiating itself on the basis of price. The company has invested in providing its customers with lower prices, an aspect that enabled them to realize more returning clients in the marketing scope (Sadq et al., 2018). The lower prices for commodities are realized through achieving excellent operating efficiencies, negotiating better terms with suppliers, and focusing on achieving high sale volumes. The company also offers delivery services for its loyal customers.

Validity of Amazon Based on Discussed E-Commerce Topics

Amazon has a well-established segmentation, positioning, and targeting in the marketing strategy that has enabled them to acquire a competitive advantage over the majority of its competitors. The company has established a psychographic and demographic segmentation for its segment market. In addition, by investing in customer value propositions and selling many of its commodities at lower prices, Amazon has been able to focus on customer centricity (Markides, 2016). Amazon company has also ensured that they save on the cost of the brick-and-mortar store so as to realize a low-cost structure. Similarly, Amazon has included in their systems a superb Gartner Magic Quadrant for their cloud systems.


Kargar, J. (2018). Amazon Company analysis. International Academy for Case Studies. Proceedings, 9(1), 20-41. Jordan Whitney Enterprises, Inc.

Markides, C. (2016). Disruptive innovation: In need of better theory. Journal Of Product Innovation Management, 23(1), 19-25

Moore, M., & Tambini, D. (2018). Digital dominance: The Power of Google, Amazon, Facebook, and Apple. Oxford University Press.

Sadq, Z. M., Sabir, H. N., & Saeed, V. S. H. (2018). Analyzing the Amazon success strategies. Journal of process management. New Technologies, 45(7), 65-694.

Swedha, K., & Dubey, T. (2018). Analysis of web authentication methods using Amazon web services. In 2018 9th International Conference on Computing, Communication and Networking Technologies (ICCCNT), 1-6. IEEE.

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