Question

Who are Amazon's competitors? (Your answer should offer a competitor timeline of sorts since competition changes over time) Why do customers shop at Amazon if they can find better prices elsewhere? Why does Amazon create much of its technology from scratch? Why did the $700 million spent in year 7000 include significant outlays for off-the shelf software? If Amazon buys products from other firms and simply ships them to customers, why does it need so many of its own distribution centers? What web software and services docs Amazon currently offer? Describe those services? How much money did Amazon make last year off of software services? Are software services profitable?

Answer 1

1)
>Amazon has several competitors in the electronics and general merchandise segment, many of which are brick and mortar rivals including Best Buy, Family Dollar, RadioShack, Staples, Target, Walmart, Sears, Big Lots, Delia and Systemacs.
>In the electronics and general merchandise segment online competition includes Alibaba Group, LightInTheBox Holding Co., Overstock.com, PCM, Vipshop Holdings, JD.com, Wayfair Inc. and Zulily.
>In the other operating segment, Amazon competes with several of the world's largest companies including CDW, PC Connection, Insight Enterprises, Google, Oracle; salesforce.com, Accenture and Citrix Systems, among other

2)

>First and foremost in its rise to the top of retail, Amazon grabbed the attention of consumers simply by undercutting the competition on price.
>
Items That Are Cheaper at Amazon
Items With a High Customer (Star) Rating
Highly Visible Products
Consumer Electronic Add-Ons

It can be easy for Amazon customers to assume they're always getting the best price. As a matter of fact, that's exactly what the marketing geniuses at Amazon want you to do. They don't want you to compare prices with Walmart; instead they want you to perceive them as always having the lowest price.