Amazon.com Inc. Retailing Giant to High Technology Player Case Study Solution
The corporate governance committee is responsible for heading the things at the board. However, the board of the directors in Amazon are selected and elected by the existing members over the request of the committee. However, the performance of the board of directors is measured by the committee to re-elect or re-select them.
Similarly, the performance of the CEO is measured by the independent directors, and they set the compensation for the CEO and other executives of the company as per their performance.The chief executive officer of the Amazon since 1996 is Jeff Bezos, who is also owner and chairmen of the board.(Bareness, 2017) Similarly, it has had seven senior vice presidents. See Table 1. Board of directors in the company are independent and are selected and re-elected by corporate governance committee.
Whereas, the committee reviews the each candidate’s qualification and skills in context with the need of the company in that current time.Similarly, the committee decides on to extend the tenure of the board members further on their contribution to the company’s success.However, no other financial is there for the amazon’s board members.
However, the board members privately measure the performance of the CEO and other executives to compensate them. Meanwhile, the corporate governance committee changes the compensation of the directors; then it would be subjected to the approval of the board.
Amazon’s vision to conquer the retail market around the world with the strategy of offering diversified products to the customers with lower prices as compared to the other competitors, and other retailers in the market. Similarly, Amazon has been offering products that are very competitive regarding prices. Such as its kindle fire tablet against its core competitors Samsung, Sony, and apple’s market share.Similarly, the company’s entry in the web-based services and cloud services against the market giant was interesting. But, Sony, Samsung, and Apple are well-known brands in the market and are well recognized.
Whereas the Amazon being known for its low-cost products worldwide.The increasing competition in the market has fueled companies to offer lower products in the market to attract the customers. But, Amazon with its tablets and mobiles could not easily compete with Samsung, Sony, and Apple.
Because, Amazon’s net sales of 57% come from the sales of electronic devices including its tablets, and other brands like mobile phones. Similarly, the Amazon is well known for its e-books, and low-cost online retailers. Hence, the company would not have competitive advantage over the competitors in the market to get market share. Amazon did this in 2011.It sold products at fewer prices than the cost of production, its net income decreased by 45%However, the Amazon has been one of leading retailers in the market for its low-cost products as compared to the rest of the market.Indeed, Amazon could not compete with the Sony, Apple, and Samsung in its offerings of the products in the market on the prices, and sales.
Even though it has its online presence, it could not compete with the Sony, Apple, and Samsung regarding different products that have different features. Whereas, Amazon is known for being retail company, not a manufacturer. However, the launch of the Kindle Fire was a potential strategy to boost the sales of e-books, and target audience who watch online movies, and videos.
Because a typical customer in the market would not purchase Amazon Kindle for using it as cellular phone to contact the people. Meanwhile, the technology has been changing, the need for the technology has also been changing. So, would Amazon be able to change itself with changing customer’s needs, and business’s needs in the market. Where Microsoft has already been playing in the market.
Internal & External Environment
Amazon is a leading retail market store in the world. However, the tax obligations on Amazon are very uncomfortable for online retail stores. However, the state’s emphasis on the company to collect the tax is a very uneasy situation. Whereas, if the government does not impose same law over other competitors in the market, then it is going to affect adversely on Amazon. That its sales might decrease.
Because if the government impose that obligation over Amazon, then Amazon would not maintain the cost-effective or low-cost online retailer as compared to other online retailers in the market. Also, theta is the best source of revenues for the government to meet its expenditures. So, it is also anticipated that government would also impose tax burden on all online retailers to collect the sales tax from all states in the United States.
Consequently, Amazon would not be able to sell its products at lower costs due to the tax burden over it. However,Amazon should collect the sales tax from all states because this law is also going to be impose don all online retailers in the market. Therefore, the Amazon should collect tax from the customers around the U.S as the states emphasize to collect the tax………….
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