However, the company has identified other product categories that can be used in addressing international markets and included them in its offers. Such product categories that can be used in increasing market share are represented by electronics, office products, grocery, jewelry, clothes, and others. Amazon identified these product categories as important opportunities in addressing European and Chinese markets.
Another important area of growth in the case of Amazon is represented by international business expansion. The reduced competition in this industry in other countries allowed Amazon to develop a strong leadership position in these markets. It seems that the company's strategy was successful, given the fact that these markets provided higher development rates than the U.S. market. This can also be attributed to the fact that Amazon developed its international activity based on the successful strategies applied in the U.S. market.
The production of its own products helped Amazon significantly improve its position on the market. Amazon Kindle is one of the most important growth areas that the company focuses its strategy on. The innovative product allows the company to become an important player in the electronics segment. The numerous benefits Kindle provides its users have determined specialists in the field to acknowledge the product's success (BusinessWeek, 2009).
Another service developed by Amazon in order to increase the number of customers is represented by Amazon Prime. This shipping program allows customers to benefit from unlimited shipping for the company's products by paying certain fees. This innovation allowed Amazon to increase its number of customers on international level. However, external factors determined increased transportation costs in certain cases.
The company must develop and implement strategies that allow Amazon to counteract the effects of the increasing competition in the online retailing industry. The company's competitors are represented by traditional, publishers, vendors, distributors, manufacturers, producers, online and ecommerce websites, indirect competitors, like media companies, web portals, comparison shopping websites, web search engines, ecommerce services providers, digital media providers, and others. These competitors benefit from strong positions on the market because they have important resources they can invest in developing their business, they have higher numbers of customers,...
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