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Wednesday 6 June 2012

Competitive Profile Matrix for Amazon.com

Amazon.com Inc. is a U. S. based multinational electronic commerce organization. Amazon.com is the globe’s largest online retailer company. It also produces consumer electronics such as e-book reader, Amazon Kindle and is a largest supplier of cloud computing services.

Amazon.com has the different websites for different countries such as: United Kingdom (UK), United States (US), Italy, Japan, Canada, China, Germany, Spain and France; for international shipping to some other counties or territories for its products. It is also in a process to launch websites in some other countries like Netherlands, Sweden and Poland to expand its operation.       

In July 1994, Jeff Bezos integrated the organization such as Cadabra, and in 1995 the site went online with its famous name amazon.com. It was renamed after the one of the world’s largest rivers the great Amazon River, which in revolve was named after Amazon, in Greek mythology known as the legendary nation of female warriors.

Amazon.com first initiated as an online bookstore, than soon diversified into related and unrelated businesses such as video games, apparel, food, software, jewelry, furniture, toys, downloads CDs, DVDs and MP3.      

Competitive Profile Matrix of Pepsi 

Competitive profile matrix (CPM) is one of the strategic management tools to differentiate among different players with an industry. CPM indicates the snapshot to the companies about their weak and strong points relative to their competitors. In CPM players are measured on the basis of their critical success factors. The competitive profile matrix identifies a firm’s major competitors and its particular strengths and weaknesses in relation to a sample firm’s strategic position.


Competitiveness of the firm can be measured on the basis of industry key success factors with firm’s strengths. If variation between the final score is found among the rivals than with the higher score getter has the greater net competitive advantage and vice versa for lower score getter. The final scores indicate that the eBay is a number one company by having 3.62 score and strong company in the market. But it is also indicated that both eBay and Amazon.com have very close scores, so ultimate results show that Amazon is also a strong company in respect of its competitors. 

The eBay and Barners & Nobles stayed on the first and third position by having scores 3.62 and 3.1 respectively. Amazon.com has second highest score in the industry slightly behind the eBay in terms of industry key success factors and strengths. It shows that Amazon.com is also a strong competitor in the industry.

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