5C analysis of Amazon (5C’s of Amazon)
This detailed 5C analysis of Amazon aims to assess how five important environmental factors such as company, competitor, customer, collaborator, and climate impact on the operations of Amazon. Amazon.com, Inc. is one of the biggest tech companies in the world. It has a number of businesses in its diversified portfolio.
Amazon.com, Inc. is an American multinational technology company. It started as a site to sell books; however, it moved on, and made its portfolio enormous. It now has millions of products in its inventory across a wide range of categories. It accounts for 38.7% of the U.S. retail e-commerce sales (Sabanoglu, 2020).
Amazon has a number of subsidiaries e.g. Alexa, Zappos, Whole Foods Market, AbeBooks.com, Audible, Twitch, and Woot. It is also one of the largest companies in the world in terms of market capitalisation. However, it has been criticised for some of its business practices e.g. poor treatment of employees, and unsafe working conditions at its warehouses (Yohn, 2020). SWOT analysis of Amazon contains more and detailed information on Amazon.com, Inc.
Amazon works with a number of knowledgeable, and innovative industry partners (Amazon, 2021). Surely, collaborative initiatives have been useful to deal with its sustainability issues and enhance product development and distribution process. It has millions of sellers across all its marketplaces and a massive number of them are based in China or Hong Kong. However, many sellers complain that the company charges them too much in fees. Likewise, their accounts are often suspended because of unsubstantiated complaints by customers.
Amazon delivers nearly 400 million packages a month. From, this figure, it can be easily imagined how many customers buy a variety of items from the company a month. Customers are also highly satisfied with it which is evidenced from the fact it scored 83 out of 100 ASCI (American Customer Satisfaction Index) points in 2019 (Coppola, 2021).
Amazon has been named the company with the best customer service score in the UK for the past decade by the Institute of Customer Service. However, an Amazon driver claimed that he/she had to deliver up to 300 parcels a day with no time for toilet breaks (Carter and Kitching, 2019). This shows the challenges for the company to maintain a high customer satisfaction rate.
Amazon’s main competitors in the e-commerce industry are eBay and Alibaba. In web service industry, it competes with Google Cloud Platform (GCP), IBM Cloud, Microsoft Azure, and many more. Likewise, its Prime Video service faces stiff competition from Netflix, Hulu, Disney Plus, and many more. Competitors of Amazon (Competitor analysis of Amazon) is a useful article to explore Amazon’s competitors more.
The last factor to assess in the 5C analysis of Amazon is the climate (also called context). Amazon is affected by a number of macro-environmental factors. Its operations may be significantly affected by economic crisis, technological disruption, and legal restrictions. PESTEL analysis of Amazon sheds more lights on Amazon’s climate.
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Last update: 16 March 2021
Amazon (2021) Partnerships, available at: https://sustainability.aboutamazon.com/about/partnerships (accessed 05 March 2021)
Carter, H. and Kitching, C. (2019) Amazon driver ‘delivers up to 300 parcels a day with no time for toilet breaks’, available at: https://www.mirror.co.uk/news/uk-news/amazon-driver-delivers-up-300-21104717 (accessed 16 March 2021)
Coppola, D. (2021) U.S. customer satisfaction with Amazon.com from 2000 to 2019, available at: https://www.statista.com/statistics/185788/us-customer-satisfaction-with-amazon/ (accessed 15 March 2021)
Sabanoglu, T. (2020) Market share of leading retail e-commerce companies in the United States as of February 2020, available at: https://www.statista.com/statistics/274255/market-share-of-the-leading-retailers-in-us-e-commerce/ (accessed 11 March 2021)
Yohn, D. (2020) Amazon Faces A Crucible Moment With Employees, available at: https://www.forbes.com/sites/deniselyohn/2020/06/02/amazon-faces-a-crucible-moment-with-employees/?sh=27d91b983822 (accessed 10 March 2021)
Author: M Rahman
M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.