Amazon
Amazon is a US multinational, specialized in the electronic commerce. This company started as an online bookstore. Since 1998, the company sells many products as CDs, DVDs, cars, TV, etc.
The French subsidiary company was launched in 2000. The e-commerce market is growing up more and more in France within the space of a few years. In fact the turnover of the e-commerce increases year by year in 2008: 20 billion € (16.946.958£) 2009: 25 billion € (21.183.833£), 2010: 31.4 billion € (26.605.594 £) (http://www.cci21.fr). We can explain that due to the increase of the number of buyers increases e.g. 2008 22 billion buyers 2009 24.4 billion buyers thus an increase of 11% (http://www.cci21.fr). First, I will analyzed the Amazon’s competitive position on the French market using Porter’s five forces to show the development of the e-business and the effect it has had on existing retail industries, secondly the SWOT of it in France and finally it success.
I use the Porter’s 5 forces to evaluate the attraction and the structure of the market to examine the competitive environment of Amazon on the French market.
Porter’s 5 Forces by Michael E. Porter, 1980
Buyer:
The strength’s position of the customers can concern the distribution, the consumers and the other companies. The consumers and the customers hold a position of strength when the offer is plentiful and little differentiate (Management Stratégique by ulrike Mayrhofer edition Breal p15). It is the case on the French market, because Amazon it is not a monopoly, it has a lot of rivals e.g Ventes-Privées.com, Priceminister, ebay ect. The E-commerce’s offer is important so consumers can choose the website that he wants, his power of negotiation is very important.
Moreover, Amazon offers a wider range of products at a lower cost than a traditional retailer. The