5 Porter's Five Forces on Amazon Essay Example | Topics and Well Written Essays - 500 words

5 Porter's Five Forces on Amazon - Essay Example The most significant benefit is charging Amazon only when consumers make the actual purchase. This room for allowance reveals just how willing suppliers are to offer their commodities and services to Amazon. Amazon maintains a low of five items from small suppliers to lower overhead costs. Suppliers reasonably treat Amazon like a pivotal and prestigious partner, which is the source of their explicitly evident and necessary devotion (Cukier, Hodson, and Ryan, 2009, p. 5). Amazon is among the pioneers of the e-commerce sector. This advantage offers amazon a significant degree of presence in the online retail market. Amazon’s superior customer satisfaction guarantees Amazon’s market share in the end. At the same time, Amazon has numerous rivals who offer a nearly similar diverse array of products and services with almost the same low prices (Cukier, Hodson, and Ryan, 2009, p. 3). Examples of such rival companies are Barnes and Noble, eBay, and Alibaba. Amazon’s presence on the internet compelled the company to improve its search engine capabilities to rival with those of Google and Yahoo. The risk of the substitution of Amazon is significant. There are a great deal of options to amazon’s products and services for online shoppers. Currently, Amazon is unique for only its patented features such as the one-click ordering. Many stores with physical outlets have an online presence. This presence means nearly all of Amazon’s inventory are available on the internet on other websites such as the direct manufacturer’s site. Products on such sites often do not have the same low prices or offers (Cukier, Hodson, and Ryan, 2009, p. 2). However, when Amazon does not present a better offer, consumers who really want the product will always substitute Amazon with other online retailers. The internet is a platform for the prevalence of new ideas