Group B3_Week 2 Assignment

The External Factor Evaluation (EFE) Matrix for Amazon reveals several key findings that shed light on the company's strategic position in the market. The opportunities identified in the matrix underline Amazon's growth and diversification potential. Expanding into developing markets, as indicated in the first and second opportunities with a weighted score of 0.45. This move aligns with the company's emphasis on global expansion, indicating a positive strategic direction. The emphasis on a physical presence through brick-and- mortar stores suggests they know the importance of an omnichannel approach, blending online and offline retail experiences to meet consumer needs. The third and fourth opportunities, focusing on reducing returned items and enhancing delivery services, shows Amazon's commitment to operational excellence. These actions improve customer satisfaction and contribute to cost efficiency by minimizing returns and optimizing delivery processes. The matrix also highlights the significance of strategic partnerships and the exploration of new business areas like pharmacy. This indicates that Amazon recognizes the importance of diversification and collaboration to maintain its competitive edge. Moreover, the emphasis on evaluating and potentially eliminating low-quality suppliers reveals a commitment to maintaining high product standards, ensuring customer continuous trust. The last two opportunities, involving customers picking up products from retailers and investing in internet services companies, showcase Amazon's openness to innovative business models and revenue streams. The Threats section of the EFE Matrix highlights several challenges that

Part II Competitive Profile Matrix (CPM) Amazon Alibaba Group Ebay Critical Success Factors Weight Rating Score Rating Score Rating Score Advertising 0.10 4 0.40 3 0.30 2 0.20 Domestic Market Penetration 0.08 4 0.32 3 0.24 2 0.16 Customer Service 0.09 4 0.36 3 0.27 2 0.18 Product Variety 0.10 4 0.40 3 0.30 2 0.20 International Market Penetration 0.08 4 0.32 3 0.24 2 0.16 Employee Dedication 0.07 3 0.21 4 0.28 2 0.14 Financial Profit 0.09 3 0.27 3 0.27 4 0.36 Customer Loyalty 0.10 4 0.40 3 0.30 2 0.20 Market Share 0.07 4 0.28 3 0.21 2 0.14 Product Quality 0.08 4 0.32 3 0.24 2 0.16 Top Management 0.08 4 0.32 3 0.24 2 0.16 Price Competitiveness 0.06 3 0.18 4 0.24 2 0.12 Totals 1.00 3.78 3.13 2.18 Part II: Explanation of the Findings and Implications of the Data Identified in the CPM The Competitive Profile Matrix (CPM) for Amazon, Alibaba Group, and eBay evaluates the three giants of e-commerce against a variety of critical success factors (CSFs). The total scores reveal their relative competitive positions in the market. Amazon emerges as the leader with a total score of 3.78, reflecting its strength across multiple CSFs. It specializes in advertising, customer service, product diversity, customer loyalty, market share, product quality, top management, and pricing competitiveness. These strengths contribute to Amazon's dominance in the e-commerce industry, emphasizing its ability to effectively reach customers, provide diverse product offerings, maintain customer loyalty, and compete on pricing.

Improving Amazon’s competitive advantage requires a comprehensive strategy that encompasses various facets of its operations. The first one to consider is innovation and technology adoption. Amazon should continually invest in research and development to stay at the forefront of technological advancements. Embracing emerging technologies such as artificial intelligence, machine learning, and automation can enhance efficiency in operations, logistics, and customer service ( Delivering the Future , 2023). Streamlining the supply chain process is essential for maintaining a competitive edge. By leveraging data analytics and adopting advanced logistics solutions, Amazon can enhance inventory management, reduce delivery times, and minimize operational costs (Sadq et al., 2018). While Amazon has a global presence, further expansion into untapped markets and diversification into new product or service categories can mitigate risks associated with regional economic fluctuations and increase revenue streams. A superior customer experience remains a cornerstone of competitive advantage. Investing in personalized recommendations, seamless purchasing processes, and exceptional customer service fosters loyalty and attracts new customers (Sadq et al., 2018). Addressing environmental and social concerns through sustainable business practices can resonate positively with consumers. Implementing eco-friendly initiatives, ethical sourcing, and transparent supply chain practices align with the growing demand for socially responsible companies. A skilled and motivated workforce contributes significantly to competitiveness. Continued investment in employee training, well-being programs, and attracting top talent can enhance productivity innovation, and overall company performance (Sadq et al., 2018).