Amazon.com, Company serving the people of the UK.

 

Amazon.com,
Incorporation (Inc.) is the international company based on e-commerce offering
computing services, digital content, online retail, and consumer electronics
including other local service such as groceries, personal care and daily deals
(Amazon.co.uk,
2018). Amazon Company has now been operating in most of the
parts of this world, this company has fully grabbed and controlled the
competition of the UK market, however, there are few challenges that this
company need to face while marketing their products and services across the UK.
Thus, the aim of this report is to have a research on the business methods of
the Amazon Company serving the people of the UK. Recently, it has been found
that Amazon has putting key tries for addressing the biggest issue with their
e-commerce business process.

Problem of the research

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As Amazon
refers to the modern marvel, thus, no other companies in the entire history
have made the complexities regarding finding, buying along with shipping as
simples a Amazon does. Amazon offers everything as simple as anything within
the world at the customer’s doorstep. However, for all their brilliance, this
company has had troubles getting past at that doorstep (Bryman and Bell, 2015).
This has perfected everything except for the last foot, which company calls it
the “Issue regarding the Last Foot”. Moreover, this is an issue. With the
recent trend, people have now been buying tons of their stuffs via online
including the pricey things such as electronics, personal care and clothes,
thus, the theft based on the packages have now become a widespread issue. According
to the outcome of 2015 survey, it has been found that approx. 23 million of
people have reported having packages that are taken from the customer’s
doorstep.

Research aim and objectives

The aim of the
research work can be stated as the difficulties, which are faced by Amazon in
order to create strong business structure in England. Customers of the said
e-commerce company are influenced by the so many existence of the company in
the same sector (Bernard, 2017).
Apart from that the changes, which are occurred in the market of England, keeps
effect on the British market.

The targets and
the objectives of the research are given below:

·      
Search the existence of business structure as
well as growth of Amazon in UK.

·      
Find out the growing market competition of Amazon
in UK.

·      
Restructure the security system of the database
system of Amazon

 

Research question :

The research
questions can be stated as

·      
What are the current trends, which affects the
business structure as well as growth of Amazon in England?

·      
How does the growing market competition affect
the business of Amazon in UK?

Market outlook of Amazon

The
forty-three analysts further offering twelve months having prices forecast for
the Amazon Company, which has a median target for around 1, 3000.00, having a
high estimation of about 1,525.00. Moreover, there is a low estimation of
approx. 980.00. The median based
estimates further represents a +0.52 percent increased from the last price for
around 1,293.32

 

Figure
1: Market outlook of Amazon

(Source: Blumberg et al. 2014)

The recent
consensus amongst 48 polled having investments analysts are for buying the
stock on the website of Amazon Company. These ratings have held steady in from
last January, while it had been unchanged from the rating of buying.

Figure
2: Recommendations based on analyst

(Source: Sekaran and Bougie, 2016)

Figure
3: Sales and earnings forecasts

(Source: Hair, 2015)

Figure
4: Sales of Amazon

(Source: Eriksson and Kovalainen, 2015)

Literature Review

Business
Methods

The methods
of doing business having practices areas, which is a part of the “Technology
Center-3600”. In addition, this center further handles the applications
associated with various business methods. The practice area associated with
business methods are comprised of approx. three workgroups, which include 3620,
3280 along with 3290 (Bryman, 2015). The workgroup based on 3620 and 3280
can examine the application pertaining to the incentive programs and coupons;
operations based research; e-shopping (electronic shopping); healthcare; POS
(Point of Sale), accounting, inventory; prices/cost, shipping, reservations and
transportation; at last, business processing. Lastly, the workgroup related
3690 further examines the applications further pertaining to the
banking/finance/insurance.

Data set:

Figure 5: Sales revenue: Amazon vs Major retail stores

 

 (Source: Brinkmann, 2014)

 

From the
above data, the sales revenue between the Amazon and major retail stores has
been mentioned in terms of focusing the growth of Amazon than major retail
stores. This graph shows

Generating
the business growth of the company with the competition of the retail store, in
the year 2010, whereas total sales.

 

Figure 6: Amazon’s
long-term growth

(Source: Fuller et al. 2016)

The
above chart reflects Amazon’s long-term growth based on revenue and net income
throughout England from the year 1997. This chart shows that in the year 2008
where the revenue amount was $20b, in the year 2015 it is raised to the amount
of $100b. This graph proves the up gradation of the company according to the
e-commerce market.

Figure
7: Sales revenue: Amazon vs. Major retail stores

(Source: Smith, 2017)

From the
above data, the sales revenue between the Amazon and major retail stores has
been mentioned in terms of focusing the growth of Amazon than major retail
stores. This graph shows

Generating
the business growth of the company with the competition of the retail store, in
the year 2010, whereas total sales.

Growth in e-commerce sales:

For the
online retailers, Amazon has been becoming further more and more daunting.  According to the report published on the
October 24, 2017, it has been found that Amazon could further be responsible
nearly half of the UK e-commerce based sales in the year of 2017. The space
associated with online retail get more scary and scary for every individual
that is not Amazon. Moreover, Amazon will now own the bigger piece of the
e-commerce related sales within this year that is going to own about more than
44 percents of each –ecommerce euro that is spent in the UK (Hair and Sarstedt, 2014).
In addition to it, it has gone up from approx. 38% the previous year, in
accordance with the new estimation based on the public companies belonging from
the E-marketer running research firms.

Figure
: Growth of Amazon

(Source: Hair and Sarstedt, 2014)

Trends of E-commerce
sector with the relevance of Amazon’s role in U.K as well as the competition:

In the
global market sector the communication and transport are became very fast. It
is easy to get any product of any brands (Bernard, 2017).
E-commerce makes the system easy. The strategies taken by the company Amazon,
provides quality service of delivering product, attachment with the world known
company’s products help the said company to grab the retail market of England.
Apart from that, the technology to maintain safety, which is used, in web-based
system is enough effective, for that reason the feedback to the companies by
the customers is positive and the company is succeeded to achieve to keep the
existing customers (Lindlof and Taylor, 2017). On the
other hand, it can be said the business structure as well as business growth is
not totally captured by the said company because the existence of competitive
companies make the market difficult for business point of view of Amazon
company. In order to structuralize the business in England of E-commerce,
Amazon need to improve the service sectors and security of their website
otherwise it is tough to maintain the existence of the company in the
competition market (Veal, 2017). 

Conclusion

After
reviewing the business process of the Amazon Company, it has can be concluded
that majority of the Amazon’s revenues have been generated via the e-retail
selling process of electronic including other products. In addition, the seller
revenues of third party, subscription services along with the AWS activities
follow all the products, the global scope and reach of the Amazon Company; it
has also been considered one of the most valuable as a brand image across the
world. This research
shows the expected business structure of Amazon based on the e-commerce sector
up gradation. It can be said that it is also found that the profitability of
the company has a steady growth rate in the sand period. In addition, it has
been seen that the profitability of the company raises rate lower rate as
compared to the growth rate of sales. Therefore, the increasing cost of serving
the consumers could be identified as the main problem of the company and the
overall industry. Finally, it is to be recommended that the security system of
the company and the industry be to be enhanced in order to maintain the
enhanced demand of the online retail sector. Apart from that, it can be said
that the advancement of the transport of the company has upgraded the company’s
growth and perspective as the company can make well planned business structure
of the company

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