Companies That Have the Potential to Surpass Amazon
There is no doubt that Amazon is one of the most substantial firms in the marketplace, yet it has some effective competitors, including Google and Walmart. Although it may be challenging, it is still possible for other successful companies to beat Amazon, and the best strategy for them is to focus on the firm’s weaknesses. According to Dudovskiy, they include an easily imitable business model, complex user interface and other issues with the online platform, and specific damages to the brand image (1).
The Competitive Dynamics Between Google and Amazon
Therefore, a company willing to outperform Amazon should imitate its business model while upgrading it, ensuring its website is easily accessible and navigated and has a strong reputation. At the same time, Amazon also has certain advantages. Dudovskiy mentions that the firm has an effective ecosystem of services and products, an efficient cost structure, and is client-oriented (1). Other businesses can use these strengths to become more successful in the market.
Further, both Google and Walmart are potential concerns for Amazon. These organizations have extended and loyal customer bases. Additionally, Morgan indicates that Walmart has a better retail presence, sustainability policy, and total revenue rates, and its success keeps Amazon from slowing down with its development and growth (2). Next, if Google finds out how to return its product search domination, it can become an even more powerful rival. Therefore, Amazon should continue viewing these businesses as its main competitors and create other ways to outpace them.
The Importance of Understanding the External Environment
Next, considering the importance of analyzing the external environment for any organization to strive, it is essential to explore why some firms fail to do so. The main reasons are that they underestimate the value of this step or the external factors suddenly change to such an extent that they immediately affect the company negatively (Wellington, 3). For instance, Walmart failed to enter the German market because it did not consider its cultural differences and legal factors. Another example is Starbucks, which was not welcomed in Israel as the company did not understand the need to adapt its services to the preferences of local customers. Therefore, in such cases, businesses lose profit, reputation, brand image, and customers and have other negative implications.
References
Dudovskiy, J. 2022. Amazon SWOT Analysis. Web.
Morgan, B. 2021. Who Wins the Battle of Walmart Vs. Amazon?. Web.
Wellington, K. A. 2021. Understanding How Your Business Can Be Impacted by External Factors. Web.