Amazon: Leading E-Commerce Giant Amidst Rising Competition - Essay Sample

Introduction

Amazon company is among the leading e-commerce organizations in both the local and international market. The organization in the previous fiscal year was recorded to be the leading entity in terms of sales in the United States, thus playing a significant role in indicating the high level of the entity in the market. However, in evaluating the operations of Amazon, it is quite evident that the company which deals in various operations is currently witnessing a high level of competition from multiple organizations in the market (Hewage, Halgamuge, Syed, & Ekici, 2018). Among the leading organizations that have proven to be significant competitors to Amazon company includes Walmart Company. Alibaba, Costco, eBay, Flip Kart, Priceline, Otto, JD, and Walmart. In evaluating the current situation of the market share, it is quite apparent that Amazon accumulates a significant proportion compared to other competing entities in the market (Skalicky, & Crossley, 2015). The high level of competition which Amazon is facing and the decision of breaking it up will not only prove to be ineffective in ensuring that the entity fails to achieve its annual financial goals but will also weaken the operations and the stock market price of the company in the market. The strategy will prove to be an added advantage to most competitors, which will enable them to pursue their interests in the market comfortably.

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Some of the Ambitious Innovation Initiatives that Amazon is Currently Pursuing

Innovation is one of the leading strategies that have been incorporated into the operations of Amazon that have played a significant role in ensuring that the company is one of the most competitive and successful companies in the market. One of the leading innovations that have been pursued by the entity is the creation of Amazon Alexa, which has been incorporated with a digital assistant and Alexa Skill Blueprints to improve on its level of efficiency. The other major innovation that is being pursued by Amazon is the smart home tech, which will allow the control five devices which will be configured with the Amazon Alexa (Anh, 2019). The company aims at selling these products at a price which will be under $ 100, thus ensuring that it has the element of affordability in the market. The other major innovation that is being currently being pursued by Amazon in the market is the invention of Alexa smartphone. Apple and Google are the current entities leading in terms of creation of mobile platforms and the Internet of Things (ZDNet Editors, 2018). The innovation motive being pursued by the company will perform a vital function in triggering the next war of the mobile the Internet of Things in the market.

Arguments to Show Why Breaking up Amazon Would Limit its Efficiency and its Ability to Pursue Bold And Aggressive Innovation Schemes

In evaluating the decision of breaking up Amazon company, it is quite evident that the company will play a significant role in reducing the aggressive and bold innovation scheme that being pursued by the entity ion the market. The company has various departments which work for hand-in-hand to enhance innovation of Amazon in the market. For this reason, the company will lack adequate innovation technology power, which will assist the entity in inventing more innovations (Weber, & Schutte, 2019). Most customers significantly know the brand of Amazon in the market, and thus the breaking up of Amazon will create a high level of confusion to the various competitors due to the new brands that will be used in selling the products of Amazon (Canter, & Gomez, 2017). The alignment of roles among various departments, which is crucial in pursuing innovative ideas in the market will highly be jeopardized, thus reducing the level of innovation and creativity that might be pursued by the organization.

References

Anh, T. (2019). Artificial intelligence in e-commerce: Case Amazon (Doctoral dissertation) Centria Universityof Applied Sciences, Kokkola, Finland. https://scholar.googleusercontent.com/scholar?q=cache:PIu1SX2bHFEJ:scholar.google.com/+Artificial+intelligence+in+e-commerce+:+Case+Amazon&hl=en&as_sdt=0,5

Canter, H. D., & Gomez, T. J. (2017). Amazon business and GSA Advantage: a comparative analysis. Naval Postgraduate School Monterey United States. https://apps.dtic.mil/dtic/tr/fulltext/u2/1053121.pdf

Hewage, T. N., Halgamuge, M. N., Syed, A., & Ekici, G. (2018). Big Data Techniques of Google, Amazon, Facebook, and Twitter. Journal of Communications, 13(2). doi: 10.12720/jcm.13.2.94-100

Skalicky, S., & Crossley, S. (2015). A statistical analysis of satirical Amazon. Com product reviews. The European Journal of Humour Research, 2(3), 66-85. doi: 10.7592/EJHR2014.2.3.skalicki

Weber, F., & Schutte, R. (2019). A Domain-Oriented Analysis of the Impact of Machine Learning-The Case of Retailing. Big Data and Cognitive Computing, 3(1), 11. https://doi.org/10.3390/bdcc3010011

ZDNet Editors (2018). Amazon: The world's most innovative tech company. Retrieved from https://www.zdnet.com/article/amazon-the-worlds-most-innovative-tech-company/