E-retail allows for us to purchase goods at the convenience of ourselves, whether it be in a workplace or at mom, or on a desktop computer, a laptop, or even our phone if it permits. This eliminates the stresses and inconveniences that come with going from store to store in search of the goods and does not require us to accomplish this within the business hours of the various businesses. As U. S. Citizens, we know and experience the necessity for technology and the Internet.
These are things that are becoming a part of our daily lives more and more each day. With this cultural trend, e-retail is an industry that definitely has a chance for growth. Socially, as U. S. Citizen, we are known to be lazy. Although this can be portrayed as a bad trait, we can easily say that we simply find easier and less laborious alternatives to complete tasks. With that being said, the Internet and e-retail allows us to find almost everything that we are in search of whether it is a good or service or even Just information.
Another factor involved is technological trends, which will always and even more so in the future, expand, grow, and be one of the most innovative trends. Amazon will be able to use this to not only advance their checkout and delivery process, but this will also allow them to grow their line of Kindles and smoothness. As e-retail becomes an integrative part of how consumers purchase goods, Amazon will be able to excel in this industry and has already proven to do so. Profit potential can be determined by performing a five forces analysis.
There are five forces that threaten the performance of solar energy industry: buyers, substitutes, new entrants, and suppliers. The following chart describes whether these threats are low, medium, or high. Threat to Industry Profitability Low Medium High Threat of substitutes Threat of new entrants v’ Rivalry among existing firms Bargaining power of suppliers Bargaining power of buyers v’ Substitutes are a very strong threat to the industry. With so many various retail and online marketplaces, consumers can pretty much go anywhere to find something if Amazon is unable to fulfill their needs.
Although, Amazon usually beats the prices of local and most online retailers, they still may not have the exact product or be charging a better price. Threat of new entrants is high simply because the products they offer can be offered by anyone willing to put in the amount of time and money. Amazon: Analysis of Industry By unseeingly products are easily acquired and there are many different suppliers. To compete in this industry, they would need funding, marketing, networking, and an ability to forcefully put themselves out there to gain customers and, in turn, creating sales.
The company would also need a niche product. With Amazon and their Kindles, smoothness, and Amazon Prime, these are the products that make Amazon stand out from the rest. The industry rivals consist of Reawaken. Com as well as Walter and Target, who have expanded their products to online retail and any brick-and-mortar retailers. Rivals also include physical stores that sell their products as well simply cause what Amazon may not provide for the same price is convenience and urgency. The fact that online retail is growing also proves rivalry is high.
Just like there are many rivals, there are many suppliers. These companies have to get their products from somewhere, most of which are from several name brands and other sources outside of the U. S. With this being said, since there are many suppliers, they do not have a large advantage in bargaining their products because what cannot be accomplished with one supplier can be done with another, so this is not a large threat. In this case, buyers are those who use and/or purchase any consumer items, whether they are goods or subscriptions or services.
Consumers have the option to choose how much they want to pay for what they are getting. This is when name brands and off brands come into play. Current economic conditions may also make it difficult as well because if consumers are making less income then it makes sense that consumers spend less. After evaluating the five forces, it can be concluded that most of the forces for the online retail industry are moderate to high. The threats in he industry could affect the industry profitability.
With Amazon being one of the largest competitors, as of right now, they do not have much to worry about. Their reputation and popularity helps them to lead their industry as well. Target markets for this industry is technically everyone. This includes anyone who consumes any apparel, accessories, shoes, hygienic items, etc. Amazon pretty much provides any and everything a consumer would need. Growth for this industry is expected to continue to grow with the Internet and shopping online becoming increasingly popular and more useful.