Subject category:
Economics, Politics and Business Environment
Published in:
2014
Length: 12 pages
Data source: Published sources
Abstract
This case explores the microeconomic determinants of Amazon’s success as well as the market forces that can potentially undermine the firm’s development in the future. So far, Amazon’s ever-changing business model and portfolio of activities have allowed the company to continuously adapt to new market dynamics and new business realities. Whether this will be the case in the future depends on Amazon’s ability to adapt to new competitive challenges and to clear current and future regulatory hurdles. In particular, while some headlines suggested that the rise of Amazon was inescapable and that this meant the demise of traditional retailers like Wal-Mart, it now appears that Jeff Bezos’s rivals are fighting back. Similarly, these same headlines about Amazon’s rise tend to overlook the potentially far greater challenges that Amazon may need to face from other GAFA firms as well as from Alibaba. Ultimately, the sheer size of Amazon could set regulatory issues that the firm will need to face.
Teaching and learning
This item is suitable for postgraduate and executive education courses.Time period
The events covered by this case took place in 2010-2014.Geographical setting
Region:
World/global
Featured company
Amazon
Employees:
5001-10000
Industry:
Retail
Featured protagonist
- Jeff Bezos (male), CEO
About
Abstract
This case explores the microeconomic determinants of Amazon’s success as well as the market forces that can potentially undermine the firm’s development in the future. So far, Amazon’s ever-changing business model and portfolio of activities have allowed the company to continuously adapt to new market dynamics and new business realities. Whether this will be the case in the future depends on Amazon’s ability to adapt to new competitive challenges and to clear current and future regulatory hurdles. In particular, while some headlines suggested that the rise of Amazon was inescapable and that this meant the demise of traditional retailers like Wal-Mart, it now appears that Jeff Bezos’s rivals are fighting back. Similarly, these same headlines about Amazon’s rise tend to overlook the potentially far greater challenges that Amazon may need to face from other GAFA firms as well as from Alibaba. Ultimately, the sheer size of Amazon could set regulatory issues that the firm will need to face.
Teaching and learning
This item is suitable for postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2010-2014.Geographical setting
Region:
World/global
Featured company
Amazon
Employees:
5001-10000
Industry:
Retail
Featured protagonist
- Jeff Bezos (male), CEO