Introduction
Amazon is an e-commerce business that operates entirely online and unites different sellers worldwide. Customers can find a vast variety of products, from electronics to groceries. The company’s recent expansion is seen in the provision of such services as Amazon Prime Video and Music, and a cloud computing system called Amazon Web Services (Amazon, 2023). The company constantly implements new plans to increase service performance, and new ideas are being generated to increase customer loyalty.
Delivered Values
Amazon makes using the latest services, like purchasing goods or saving music, convenient. The business also provides a wide selection of goods from various manufacturers, making it more valuable to clients. The concept of the independent marketplace, which offers space for young entrepreneurs, allows them to make prices competitive (Satar et al., 2019). Additionally, the constant development of innovations appeals to existing and potential customers as more unique ideas are introduced in the markets.
Profitability of Amazon
The company has shown significant changes in the financial report over the last five years. From 2018 to 2021, the company’s net income increased by $23,291 (Coppola, 2023). However, economic difficulties, which negatively affect countries such as the United States, caused a decrease in income of $2,722 in 2022 (Coppola, 2023).
Even though the profits have decreased, the company has stayed lucrative and promising, as the general increase in income is 2.89% (Yahoo!, 2023). The potential causes of the problem are the lack of new developments and innovations that make people’s lives easier. Therefore, generating new ideas and improving the service provision process with unique technology is essential.
SWOT Analysis
To implement a new product or service in Amazon’s operations, it is essential to understand internal and external advantages and disadvantages. Lima et al. (2023) provided an extended SWOT analysis of Amazon to develop innovations further. Figure 1 helps find the business’s strong sides and eliminate negativities. For example, the organization stays closely connected with building constructors worldwide, and the prices of new constructions stay low over time. This aspect saves money and ensures financial stability (MarketLine, 2023). Therefore, more attention should be paid to innovation in the building sector.
New Product and Its Uniqueness
Amazon pays increased attention to the developmental aspects, and new products can be related to building new household objects. For example, the company can introduce a service called “Amazon Constructions,” which assists customers in design and architecture. Small projects like garden houses, rest areas, and guest houses can be developed as the company’s main strengths are low production costs and design beauty (Lima et al., 2023). It can be complicated for competitors to introduce the same service due to the high costs of building materials.
Aesthetics is becoming more popular, and individuals may prefer to make their places more appealing. Therefore, while the willingness to pay increases, the number of substitutes and duplicates stays the same. Amazon should also consider the environmental factors and make construction sustainable using low-impact materials like bamboo and natural, recycled materials.
How “Amazon Constructions” Improves Profitability
In this case, the niche market is targeted efficiently as more people want to have compact living options. Moreover, this type of construction should not be expensive because of the insignificant number of materials needed, and the target audience can start increasing because of affordability. The idea also promotes environmental consciousness, and the popularity of eco-friendly products is increasing, which is increasing Amazon’s profits. This type of product differentiation makes the company more competitive and unique.
Conclusion
In conclusion, Amazon is one of the biggest multinational companies that provides third-party sellers with a platform to place their products and earn money. The easy use of the website and application makes the business appealing to customers, and more unique services are being developed to satisfy the target audience’s needs. Even though the company’s financial position has shifted to the negative side, introducing a new service called “Amazon Constructions” can help decrease the number of internal and external problems and increase annual profits.
References
Amazon (2023). Web.
Coppola, D. (2023). Amazon: Annual net income 2004-2022. Statista. Web.
Lima, M. F. B., Souza, A. N., Teixeira, D. E. (2023). A SWOT analysis of AWH project implementation in the Brazilian Amazon as perceived by affordable housing stakeholders. Forests, 14(3), 594. Web.
MarketLine (2023). Amazon.com, Inc. MarketLine.
Satar, N. S. M., Dastane, O., Ma’arif, M. Y. (2019). Customer value proposition for e-commerce: A case study approach. International Journal of Advanced Computer Science and Applications, 10(2), 454-458. Web.
Yahoo finance (2023). Amazon.com Inc. (AMZN). Web.