Amazon PORTER’S FIVE FORCES MODEL

AMAZON. COM PORTERS FIVE FORCES puzzle Bargaining author of suppliers The proponent of suppliers is medium-high. Suppliers have a medium power in the sense that much of Amazons own account could be obtained from numerous suppliers across the country or even across the globe. Suppliers have a higher power given that Amazon. com cannot compete with suppliers. Amazon. com does not run any production plants. Bargaining power of buyers The bargaining power of buyers is high. Amazon. coms customers have the option of buying the products and services they desire on the hundreds of thousands of other retail web sites on the internet.If Amazon. com does not offer first-class honours degree prices to satisfy the customer then the customer will search the net profit until they find that low price. Rivalry among competing firms Despite Amazon. com is one of the first companies into the e-commerce field, competitor is high (Barnes and Noble, Google, Walmart, Ebay etc. ) Threats of substit ute products Amazon. com has innovated their services and products along the historic period and the name of amazon. com is well recognized and trusted into the field, but still the panic for substitutes is high (Books can be purchased at Barnes and Noble Books, Books-A-million, and Half price Books.Books are additionally sold at newsstands, drugstores, and discount stores. Books can likewise be borrowed for free at university libraries, music can also be purchased at discount retailers) Threats of new entry Threat of new entrants is low. It would be virtually impossible for a new company to reach the order of inventory and status that Amazon. com maintains. Amazon. com has been in the internet marketplace for about thirteen years now- it would be extremely difficult for a start-up company in the industry to raise enough capital to even compete with Amazon. com on a lower level.