E-Commerce: Analysis Of Amazon Free Essay


Amazon, the world’s biggest e-commerce brand established by Jeff Bezos, was founded in Washington in 1994 and again in Delaware in 1996. Its website was launched for the first time in 1995. In addition to being a worldwide e-commerce brand, Amazon is also a prominent cloud player and is strengthening its position in the cloud business. Clients have always been at the center of Amazon’s corporate strategy, and this strategy has led the company to success. The E-commerce sector has become increasingly competitive, and Amazon has maintained its consumer focus in order to remain competitive. Moreover, the company has increased its involvement in innovation and research in order to give clients a better overall experience.

Amazon’s Vision, Mission, And Strategy

Customer Service

Amazon has worked hard to achieve its vision and mission objectives through improving customer service. The business offers a diverse range of things from which customers may choose, including apparel, books, music, cuisine, robots, and a movie database, among others (Lincoln & Andrew, 2018). Amazon restructured its online stores to cater to each customer’s choice by introducing the “your store service,” which has been crucial in easily offering services at affordable prices by leveraging economies of scale (Sadq et al., 2018). In addition, Amazon created the A9 ranking system, which gives customers an easier product search experience. Furthermore, the organization uses a large pool of reviews and ratings. The reviews are an important part of the Amazon purchasing experience. Through participative labor, they instill a shared approach to purchasing, resulting in a social group that provides end customers with a sense of belonging.

Ethical Standards Towards Customers and Employees

Additionally, Amazon uses ethical standards for its consumers and staff in order to fulfill its objective and mission. According to the first guiding guideline, “Employees must follow applicable laws, rules, and regulations at all times” (Williamson et al., 2022). Furthermore, the group opposes sexual harassment and discrimination. Amazon requires vendors to offer accurate product information to customers while also respecting the reviews and ratings of other sellers. Moreover, vendors should erase consumer data after transactions and prevent sending unwanted messages to customers. Amazon workers are also subject to conflict of interest, insider trading, bribery, and price-fixing standards. The organization offers a secure, healthy, and clean working environment (Williamson et al., 2022). Workers are responsible for ensuring such circumstances by adhering to the organization’s safety guidelines.

Amazons Competitive Advantage

Amazon has three main strategies which lead to competitive advantage firstly, cost-leadership, customer differentiation, and focus strategy. The first approach centers on providing products of the same quality at a lower price than the market. The second revolves around delivering more options than rivals, while the third one is targeted at niche clients by combining the two methods. In addition, Amazon’s values have a positive impact on competitive advantages. The company has two strong values: customer satisfaction and operational frugality (Jain, 2021). These two elements support Amazon’s operational strategy to obtain and maintain an effective competitive advantage while enhancing the performance of its staff and the business. Due to its cost-effective strategy of paying its staff a lower basic income than its rivals, it spends significantly more on company growth and branding with the money it saves.

The corporation, on the other hand, keeps its employees loyal by distributing company stock to them. By doing so, it hopes to signal to workers that when the firm benefits or earns a profit, the staff will also benefit or earn a profit through the shares. Amazon’s strategic objective is to target numerous categories using technology and information. It employs segregation, novelty, and expansion via alliances. It emphasizes increasing sales volume while reducing expenses internally. Amazon has created an organization that is more difficult to assault. If Amazon is successful, other e-commerce companies may follow suit in the future. Amazon’s ambition was to be the world’s largest bookshop, but it has now evolved into the world’s largest collection. It is the world’s first and most successful internet retailer.

Amazons Competitors

One company stands out above the others when it comes to e-commerce and online retail behemoths: Amazon. It is reasonable to wonder if Amazon’s competitors are still rivals, given its unmatched advantage in logistics, transport, distribution, and general technology advancement. Despite its complete control, Amazon only sold roughly half of all items purchased online in the US last year (Sadq et al., 2018). Amazon is up against a plethora of other online businesses that are vying for even a little slice of the vast and expanding e-commerce pie. Companies like Google, eBay, Apple, Walmart, Alibaba Group, and Costco Wholesale are some of these rivals (Sadq et al., 2018). These rivals are the driving force behind the fierce market competition.

Strategic Thinking

Amazon is an example of a large corporation that has never shied away from strategic thinking. Instead of just selling currently accessible items, the internet empire invests in the future of fledgling enterprises through technology on a regular basis. For example, the Amazon Web Services Pro-Rata Program, which was established in March, connects companies with investment possibilities from family offices and venture capitalists (Hashemipour & Ali, 2020). Lyft and Slack are among the program’s success stories now that it is more than a decade old.

Amazon Web Services (AWS), the company behind this introductory program, is more than a decade old and delivers on-demand cloud computing platforms to people, businesses, and governments on a metered pay-as-you-go basis. Companies may wish to follow Amazon’s lead and commit to long-term initiatives as well. Of course, this path is not always sunny: such businesses may confront organizational and, in some cases, governmental pressure. However, the potential rewards for these daring renegades are huge. With large corporations such as Blockbuster and Polaroid closing their doors – either permanently or temporarily – due to an inability to prepare for the long term, being strategically driven rather than tactically driven may be what finally keeps their doors open.

What Next for Amazon

Over the previous 15 years, Amazon has grown into quite the behemoth, and it shows no indications of slowing down. AWS is unrivaled in the cloud, with $12.2 billion in revenue and more than $3 billion in profit in 2016 (Hashemipour & Ali, 2020). While CB Insights expects that AI will be Amazon’s next big move, it also warns that the corporation will face stiff competition from IBM and Google, both of whom are rapidly progressing in the field (Hashemipour & Ali, 2020). IBM has developed an entire industry around its Watson platform, which uses cognitive technology to drive analytics across several industries. Nevertheless, if innovation continues, Amazon will become one of the most valuable firms in America. According to BrandFinance’s recent U.S. 500 2017 research, the corporation is the third most valuable brand in the United States (Hashemipour & Ali, 2020). Amazon’s brand worth increased by 53% year on year, showing that the company is on the rise and might soon give Apple and Google a run for their money.

Amazon has been the world’s largest e-commerce platform for more than a decade now. However, the company has also faced strong competition from firms like Alibaba Group and eBay. Therefore, to ensure that it maintains its competitive advantage, the organization emphasizes the implementation of its mission and vision statements along with the strategic plan and thinking in its daily activities. This has been achieved through strategies such as customer reviews, product differentiation, and improved customer experience.


Hashemipour, S., & Ali, M. (2020). Amazon web services (AWS)–an overview of the on-demand cloud computing platform. In International Conference for Emerging Technologies in Computing (pp. 40-47). Springer, Cham.

Jain, R. (2021). Competitive advantages and competition issues: analysis of the e-pharmacy market in India. Issue 1 Int’l JL Mgmt. & Human., 4, 962.

Lincoln, I. V., & Andrew, C. E. (2018). Porter analysis: A business strategy of amazon. com through a value chain and comparative advantage analysis of amazon’s trademarks and intangibles. Com Through a Value Chain and Comparative Advantage Analysis of Amazon’s Trademarks and Intangibles (2018). Practical Guide to US Transfer Pricing.

Sadq, Z. M., Sabir, H. N., & Saeed, V. S. H. (2018). Analyzing the Amazon success strategies. Journal of Process Management and New Technologies, 6(4).

Williamson, B., Gulson, K. N., Perrotta, C., & Witzenberger, K. (2022). Amazon and the new global connective architectures of education governance. Harvard Educational Review, 92(2), 231-256.

Diversity And Inclusiveness In An Organization

Sarah Iddrissu, the executive director of E4E-Boston, explains what daily difficulties women of color face when interacting in the professional sphere and discusses ways to remove existing barriers to leadership. Iddrissu (2020) underlines: “We work to advance our values on behalf of communities we care deeply about while also fighting structural barriers to our career success.” She calls for a shift of nonprofits towards a more inclusive and diversity-supporting environment, which is currently lacking. The article proposes to expand the presence of women of color on the boards, hire more of them into leadership positions, and promote organizations that fight structural gender and racial bias (Iddrissu, 2020). Thus, the author of the article identifies the need for structural changes to remove existing barriers to talented women of color in leadership positions.

It is now important for organizations to represent the interests of the most diverse groups in order to shift to an institution that is finely integrated into the social fabric of the day today. Previously, society was predominantly shaped by white men, but at the moment, they do not reflect the needs of various minorities. To function successfully in today’s society, companies need to focus not only on business but also on the social agenda. This process is not possible without the support of the diversity that currently defines society. This shift is especially important for new start-ups and enterprises, as it allows companies to meet modern requirements from the very beginning and work for the benefit of communities. In the cancers of society at the moment, it is important to emphasize social problems and address them in order to function successfully. The more attention new companies pay to this aspect, the higher the likelihood that their business will become successful and long-lasting.

Leadership strategies should be based on the empowerment of talented people who may experience barriers due to structural biases. In particular, this is critically important in the formation of the leadership team of the project from its initial stages. To ensure cultural competency, it is also necessary to ensure diversity within the company, as well as address the needs of different communities. For the successful functioning and maintenance of diversity, it is necessary to consider the interests of all key groups and give them a voice through representatives.

Designing a Diversity Plan

Diversity planning is an integral part of the development of companies at the moment. The implementation of measures to support diversity and inclusiveness in an organization is necessary to create a culture of diversity and attract talented people (Roy, 2021). Roy (2021) notes that in today’s global environment, inclusiveness is the basis for competitive advantage. This is especially important for non-profit organizations and social projects, as it makes it possible to address the needs of the most diverse populations, which ensures the representation of various groups in society. Diversity planning requires the following steps:

  1. Data collection: The first step is to collect data on the current state of diversity in the organization. In particular, attention should be paid to leadership positions and the board, as it is necessary to provide them with representatives of the most diverse groups and communities. Additionally, it is important to consider groups protected by the federal and state governments in order to provide the greatest responsiveness to community issues.
  2. Objectives development: At this stage, based on the information collected, it is important to determine what goals are set to maintain diversity. It is important to identify existing gaps and identify appropriate hiring practices. It is important at this stage to pay attention to possible bias when making hiring decisions.
  3. Diversity tools and inclusion training: at this stage, it is necessary to determine which key tools for ensuring diversity are necessary for implementation in the company. In particular, this includes a review of the necessary training for employees, as well as leadership positions. at this stage, it is most important to ensure a shared vision for diversity and inclusiveness among all colleagues, not only human resources specialists.
  4. Community support: at this stage, incorporating diversity within the board and leadership is key to building community support. In particular, the stakeholders of a company or project should be aware of the need to remove structural barriers and the actions that need to be taken to achieve this goal. Leaders must articulate diversity objectives to both employees and stakeholders to provide comprehensive support. Communication in this situation is the main tool that leadership can use to achieve understanding.
  5. Measurement of results: at this stage, it is important to ensure that all interested groups are represented both in the leadership and among employees. It is important to revise the plan in line with identified gaps to ensure that diversity and inclusiveness initiatives are most effective.

Thus, within the framework of social enterprises, it is necessary first of all to determine the goals of the activity and the interested groups. A diversity plan should be based on the need to include in the leadership of various members of the community who are associated with existing social problems. To remove structural barriers, both the board and the senior management must include diverse members who share the interests of different groups in society. Moreover, they can openly communicate the necessary values ​​to both stakeholders and employees. This aspect makes diversity initiatives the most effective and allows for a shared understanding of the company’s goals. Inclusiveness in this situation should be achieved through the development of appropriate company policies and procedures for the formation of hiring practices. In this regard, it is necessary to constantly ensure that employees are trained in the diversity of practices and the achievement of the greatest contribution to addressing community problems.

Diversity planning must be done, taking into account the goals of the social project and the target audience. However, it is also necessary to take into account the broader society and the structural biases that exist in it, which can become a potential obstacle to social development. In particular, it is important to integrate as many talented minorities as possible in order to give them a chance to develop inclusiveness and promote this concept in society. The integration of diversity within organizations allows companies to address, among other things, social issues that often hinder the harmonious development of society. For social projects, the decision-making process must be in the hands of representatives of various groups. In this way, it is possible to ensure that the widest range of social interests is involved and that the highest number of problems of different communities can potentially be addressed.


Iddrissu, S. (2020). Nonprofits need women of color in leadership and to disrupt the structural barriers to their advancement. Educators for Excellence. Web.

Roy, S. (2021). Developing effective diversity and inclusion culture within an organization. In N. Mirta & R. Schmidpeter (eds.), Responsible leadership and sustainable management (pp. 117-133). Springer.

Information Gain In Customer Behavior Study


The information gain is a useful method to predict the behaviors of the customers and allows to better target and market products. Nevertheless, some limitations to this method are present.


The cleanliness of data and the possibilities of recurring issues are one of the limitations of using information gain in the future. The organization previously encountered such a problem, and there are no guarantees of this not happening again. This was a cause of the need to clean the data, which resulted in extra work done and time spent on the information gain. It is necessary to reassure in further data collection that the information is clean and properly separated and categorized to be easily accessed and used in the future.

Another issue regards the complexity of the data. It is primarily due to the presence of both categorical and numerical values in the information collected by the organization. This may result in problems regarding the possibility of correctly categorizing and assessing the data (Lutes, 2020). Moreover, the attributes which the data set consists of are independent variables that might strongly distort the results of the analysis, as their values may not affect the actual relevance of the prediction (Santini, 2015). Meanwhile, the analysis procedures related to information gain will still use this data, and it is necessary to adapt the processes accordingly to the possible problems.

Overfitting is a common issue in information gain and should be considered in every possible case. This issue is based on the prediction models being able to adapt to the information that is being assessed, which often results in wrong predictions (Bramer, 2007). Nevertheless, it is necessary to note that it is not the fault of certain models, whereas it is more of a human factor. Choosing a model and adapting it to the data set should be conducted with the consideration of avoiding the excessive complexity of the changes in the model (Provost and Fawcett, 2013). These modifications are usually the main reason for the eventual overfitting and must be done carefully and relevantly. The main method that should be adopted to avoid overfitting is testing the developed model with a holdout set.

The information gain is prone to favoring the attributes that have many possible values. The potential risk groups of attributes are almost unavoidable. This is the case in the organization reviewed, and the present attribute of such a category is ID. The reason for that lies in IDs being independent of any factors and their high variety in values (Tang, Alelyani, and Liu, 2014). This might lead to the model being too biased to evaluate information based on this attribute, which will lead to entropy being close to or equal to zero (Buscemi, Das, and Wilde, 2016). Such issues lead to the impossibility to use the information provided by the analysis and should be avoided.


The limitations regarding the usability of the information are described in the case of work with Amazon’s data. This case emphasizes the issues that are faced during working with the data to prepare it for information gain and prediction of customer behaviors (Zdravenski et al., 2020). It is necessary to develop and adopt methods that allow to properly categorize and transform data for to be used to extract any knowledge from it, which is demonstrated in the article. Another case regarding clothing sales emphasizes the issues regarding the model’s modifications and their proneness to overfitting, developing an algorithm free of these problems (Sun et al., 2015). This is remarkable in terms of how the model has to be developed to suit the necessities of businesses to properly predict customers’ behaviors.

Reference List

Bramer, M. (2007) ‘Avoiding overfitting of decision trees’, Principles of data mining, pp.119-134.

Buscemi, F., Das, S. and Wilde, M.M. (2016) ‘Approximate reversibility in the context of entropy gain, information gain, and complete positivity’, Physical Review A, 93(6), p.062314.

Lutes, J. (2020) Entropy and Information Gain in Decision Trees. Web.

Provost, F. & Fawcett, T. (2013) Data Sciences for Business: What you need to know about Data Mining and Data-Analytics Thinking. Sebastopol, CA: O’Reilly Media.

Santini, M. (2015) ‘Lecture 4 decision trees (2): Entropy, information gain, gain tatio’ [PowerPoint presentation]. Web.

Sun, F., Liu, Y., Xurigan, S. and Zhang, Q. (2015) ‘Research of clothing sales prediction and analysis based on ID3 decision tree algorithm’, In International Symposium on Computers & Informatics.

Tang, J., Alelyani, S., & Liu, H. (2014) ‘Feature Selection for Classification: A Review’, Data Classification: Algorithms and Applications.

Zdravevski, E., Lameski, P., Apanowicz, C., & Ślȩzak, D. (2020) ‘From Big Data to business analytics: The case study of churn prediction’, Applied Soft Computing, 90, 106164.