Amazon UK Porters Five Forces 2023
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In this assignment, we will examine the broad competitive environment of Amazon UK and the e-commerce industry in Great Britain. Establishing the level of competition is very useful in determining the attractiveness of any industry. The analysis will deploy Porter’s Five Forces framework to examine the key forces that affect the profitability of the industry.
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AMAZON UK PORTERS FIVE FORCES Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Analyze the UK online retailing industry and how the five forces have affected Amazon, as well as rivals, and the impact on industry structure, attractiveness, and profitability.
- Understand how Amazon UK manages to defend against intense competition from major players such e-Bay, and Etsy and the strategies it uses to create 'blue oceans' that are defensible, helping it capture and maintain top position.
- To apply strategy business models and frameworks such as Porters five forces to real company cases.
1.0 INTRODUCTION
Amazon is a transnational company and one of the leading e-commerce platforms offering a wide range of consumer goods, and technology among others. The company was started in the United States by Jeff Bezos and initially began by listing and selling only books on its website but later diversified to include other items such as garments, electronics, and computing (Hartmans, 2022).
The services offered by Amazon include Amazon Stores, Devices and support services, Delivery, and Logistics, Amazon Web Services (AWS), and Entertainment. In February 2022, the company’s shares climbed with a $190 billion increase in value to be worth a whopping $1.6 trillion, exceeding Apple’s $181 billion increase in the same period (Randewich, 2022).
Amazon generated over $513 billion in revenue in 2022, an increase of 9.1% or$43.18billion from the total revenue of $ 469.82 billion generated globally in 2021. North America remains the biggest contributor to global revenue ($279 billion), followed by International Operations ($127.78 billion). The United Kingdom contributes almost a quarter of the revenue Amazon gets from the International Operations division.
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