TOPIC: INNOVATION AND ENTREPRENEURSHIP
TOPIC: INNOVATION AND ENTREPRENEURSHIP
Student ID
24578268
Student Name Ronnie Wilson
Word Count 2300
excluding references, figures and tables and headings, titles
Table of Contents
TOC o "1-3" h z u 1.0 Introduction PAGEREF _Toc113214103 h 42.0 Strategic Analysis PAGEREF _Toc113214104 h 42.1 External Analysis PAGEREF _Toc113214105 h 42.1.1 Customer Analysis of Amazon through Value Proposition Canvas PAGEREF _Toc113214106 h 42.1.2 PESTLE Analysis of Amazon PAGEREF _Toc113214107 h 52.2 Porters 5 Forces Analysis of Amazon PAGEREF _Toc113214108 h 72.2.1 Competitive Rivalry or Competition with Amazon.com Inc. (Strong Force) PAGEREF _Toc113214109 h 72.2.2 Bargaining Power of Buyers PAGEREF _Toc113214110 h 72.2.3 Threats of Substitute PAGEREF _Toc113214111 h 82.2.4 Bargaining Power of Suppliers PAGEREF _Toc113214112 h 82.2.5 Competitive Rivalry PAGEREF _Toc113214113 h 9Amazon Opportunities and Threats PAGEREF _Toc113214114 h 9Opportunities PAGEREF _Toc113214115 h 9Threats PAGEREF _Toc113214116 h 9Market Analysis and Segmentation PAGEREF _Toc113214117 h 10Market Size PAGEREF _Toc113214118 h 10Demographic Segmentation PAGEREF _Toc113214119 h 10Behavioural Segmentation PAGEREF _Toc113214120 h 10Psychographic Segmentation PAGEREF _Toc113214121 h 10Geographic Segmentation PAGEREF _Toc113214122 h 10Price Sensitivity Analysis of Amazon PAGEREF _Toc113214123 h 113.0 Internal Analysis PAGEREF _Toc113214124 h 113.1 Current Value Chain Analysis of Amazon PAGEREF _Toc113214125 h 113.2 Amazons Vertical/Horizontal Integration PAGEREF _Toc113214126 h 123.3 Core Competencies PAGEREF _Toc113214127 h 124.0 Synthesis and Recommendations PAGEREF _Toc113214128 h 134.1 SWOT Analysis PAGEREF _Toc113214129 h 134.1.1 Amazons Strengths Internal Strategic Factors PAGEREF _Toc113214130 h 134.1.2 Amazons Weaknesses Internal Strategic Factors PAGEREF _Toc113214131 h 134.1.3 Amazons Opportunities External Strategic Factors PAGEREF _Toc113214132 h 134.1.4 Amazons Threats External Strategic Factors PAGEREF _Toc113214133 h 145.0 Innovation Related Problem PAGEREF _Toc113214134 h 145.1 Recommendations PAGEREF _Toc113214135 h 146.0 Conclusion PAGEREF _Toc113214136 h 15References PAGEREF _Toc113214137 h 15
1.0 IntroductionInnovation can relate to a method, a new marketing plan, an organisational strategy for managing human resources as well as the execution and administration of these innovations. Since entrepreneurship and innovation are essentially two sides of the same coin, one may utilise the link between the two to explain both ideas. Innovative ideas must be put into action if one is to succeed as an entrepreneur (Soni & Soni, 2021). This essay will look into the external and internal analysis, value proposition canvas and market segmentation to understand the link between innovation and entrepreneurship.
2.0 Strategic Analysis2.1 External Analysis2.1.1 Customer Analysis of Amazon through Value Proposition CanvasProducts and Services
Among the many things available on Amazon.com are books, DVDs, music CDs, videotapes, and software (Mahdavimazdeh et al., 2020). It also covers items for fine dining, groceries, health and personal care, infants, toys & games, and industrial & scientific supplies. In San Francisco, Amazon opened a liquor store in August 2019 (Baker-Brunnbauer, 2019).
Pain Relievers
Payment options, which are trustworthy: Amazon is a dependable, safe, and secure website that offers a simple payment option that is acknowledged and accepted on the site itself. They never solicit or take payments off the internet.
Amazon Premium Delivery: They provide premier delivery, allowing for earlier-than-anticipated delivery of your order (Belleflamme & Neysen, 2021). Delivery fees are often also waived in this situation.
Customer Segment
Gains
Shopping on Amazon is guaranteed to be safe and secure, giving you peace of mind. It provides you with a convenient method of payment and is the only accepted and permitted method of payment on Amazon.
Convenience - Amazon is well known in the eCommerce industry for having one of the most customer-friendly return policies.
Pains
Poor customer service occurs when the CS representative is unable to resolve the problem.
2.1.2 PESTLE Analysis of AmazonPESTEL analysis aids Amazon in understanding the global macro-environment and managing the competition gradually (Onyusheva & Seenalasataporn, 2018). Additionally, it enables them to recognize their flaws and focus on enhancing the client experience.
2.1.2.1 Political Factors
There are two elements, which need to be taken into consideration while analyzing the political issues, which affect Amazon. The first is the requirement for policies to be created in order to lower cybercrime in the Australia. Second, Australian political stability is essential for the projected rising states.
2.1.2.2 Economic Factors
The increase in disposable money among consumers is a great opportunity for Amazon.com. According to the National Retail Federation, retail sales in the US will top $3.8 trillion in 2019 (Rodrigue, 2020). As a result, businesses like Amazon, Walmart, and EBay will have the ability to expand, increasing their market share and reputation.
2.1.2.3 Socio-Cultural Factors
Social trends, practices, and other elements may affect Amazon's success positively or negatively. Staying inside and consuming junk food has a negative impact on the health of both adults and children in America. The government is under a lot of pressure to do what is necessary to raise the level of living for every person.
2.1.2.4 Technological Factors
Amazon strives to make use of technology in its delivery techniques as efficiently as possible. Amazon is vulnerable to internet crime. Concerns concerning sensitive data, such as credit card and debit card information, as well as any private or secret information, are shared by both Amazon customers and third-party merchants. This Amazon Pestle investigation demonstrates that cybercrime poses a serious danger to Amazon.
2.1.2.5 Environmental Factors
Another issue for Amazon is the minimisation of organisational emissions. Estimating the emissions from an e-commerce operation is particularly challenging. As a result, "the carbon emissions considerably increase when purchasers wish to purchase a product in one or two days" was implemented. If you can wait a week, it's like taking down 20 trees as opposed to 100. Protection of the Environment Operations (Waste) Regulation 2014 (NSW) poses effects on the procedures Amazon performs in order to deal with their waste and its treatment.
2.1.2.6 Legal Factors
Customers insist on and value regulations against fake products. Amazon now has the opportunity to increase its efforts to stop the sale of phony items on e-commerce platforms. Amazon already has a procedure in place to deal with fake products. Every product that retailers provide on the Amazon website must be authentic. Selling these products is strictly prohibited by law.
2.2 Porters 5 Forces Analysis of Amazon2.2.1 Competitive Rivalry or Competition with Amazon.com Inc. (Strong Force)The following external factors, in the opinion of Amazon.com Inc., are to blame for the environment's high degree of rivalry or competition in the online retail sector:
Extreme and persistent aggressiveness (strong force)
High frequency of substitutes (strong force)
Low switching costs (strong force)
Retail businesses usually compete aggressively and vehemently with one another. For instance, a direct rival of Amazon.com Inc. is Walmart, a sizable store with a sizable and growing online operation. Since replacements are so freely available, they also have a significant impact on Amazon.
2.2.2 Bargaining Power of Buyers
The focus placed by Amazon.com Inc. on meeting the requirements of its consumers is highlighted in the company's mission and vision statements. The following external reasons support the significant influence that customer bargaining power has on Amazon:Outstanding information (strong force)Low switching costs (strong force)High frequency of substitutes (strong force)Customers can get trustworthy information about the products and services that online retailers provide (Sadq et al., 2018). Due of the low switching costs; customers may quickly migrate from Amazon to other businesses like Walmart. Additionally, clients have more power to switch from one retailer to another due to the availability of options.2.2.3 Threats of Substitute
Amazon.com Inc. faces competition in the online retail sector. The following outside elements confirm the significant seriousness of the risk of replacement in the instance of Amazon:A low cost of switching (strong force)Large number of replacements (strong force)Affordable options (strong force)The performance of the online store is threatened by a powerful force of rivals, a problem that Amazon is always addressing. Customers may readily switch between stores, as seen by the cheap switching costs.2.2.4 Bargaining Power of Suppliers
Suppliers are in charge of the products or commodities Amazon.com Inc. needs for its e-commerce operations, such the hardware parts for information systems.Less than ten suppliers (strong force)A slight forward integration (moderate force)Middle-sized vendors (moderate force)Due to the small population, suppliers might have a significant impact on Amazon.com Inc.'s online business. For instance, changes in the price of equipment from a small number of significant suppliers may immediately affect the company's operational costs for online sales.2.2.5 Competitive Rivalry
Potentially, new rivals may reduce Amazon's market position in online retail. According to the following external factors, Amazon.com Inc. is somewhat vulnerable to the hazard of new entrance.
Low switching costs (strong force)
Expensive brand building (weak force)
Advanced economies (weak force)
Customers of Amazon may just switch to other firms, which may put Amazon under a lot of pressure. This circumstance is due to low switching costs or the minor negative effects of changing service providers (Sharma, 2020). However, the influence of new rivals on Amazon's performance is diminished due to the high cost of brand building in online retail.
Amazon Opportunities and ThreatsOpportunities1. Amazon could have the opportunity to grow its business into new markets (Dinesh & MuniRaju, 2021). This is due to the immense growth in the online retail industry after Covid-19.
2. By establishing more physical locations, Amazon can increase consumer brand loyalty and enhance its competitiveness with big-box retailers.
Threats1. Few problems have harmed Amazon's standing as a brand. Many people reacted strongly and boycotted Amazon in 2010 after it was learned that the book "The Paedophiles Guide to Love & Pleasure: a Child-Code lovers of Conduct" was available there.
2. Governmental regulations in several important countries may jeopardise Amazon's business activities. Amazon does not send to Cuba, Iran, North Korea, Sudan, or Syria.
Market Analysis and SegmentationMarket SizeThis statistic, as of 2020, displays the global market shares of the major e-commerce companies. In that year, Amazon contributed 13% of the global e-commerce GMV, while the top three companies were Alibaba, T-mall, and Taobao, who each had 25% of the market.
Market Segmentation
Demographic SegmentationAccording to a poll conducted in June 2019, 53% of Amazon customers are between the ages of 19 and 44. 37% of Americans, or one third of the population, fall into this age group. The demographics of Amazon's customers therefore show that it serves the ordinary American consumer (Baker-Brunnbauer, 2019).
Behavioural SegmentationAmazon runs its business via behavioural segmentation. In order to better understand consumer behaviour and promote customer loyalty, they arrange their information using a large number of keywords and focus more emphasis on actions than just demographics.
Psychographic SegmentationSocial class: lower, medium, and working.
Living the following way of life: resigned, mainstream, explorer, struggler, aspirant, and reformer
Overall, they divided up all of their clients into the following groups and arranged them by conversion ease.
Geographic SegmentationAmazon offers products in over 100 nations.
Both urban and rural regions should be dense.
Amazon is well known and popular across the world. Their geographic division gives developed areas greater attention.
Price Sensitivity Analysis of AmazonAmazon is well recognised for their repricing method, which is often referred to as dynamic pricing. To understand price sensitivity, consider the fact that juice sales decrease by a factor of 25% while apple nectar prices at a neighbouring facility increase by 60%. With this approach, product prices frequently change in response to pricing policies of competitor firms, supply and demand, and market changes.
3.0 Internal Analysis3.1 Current Value Chain Analysis of AmazonA technique for locating the commercial operations that make up a company's value chain and locating prospective growth opportunities is value chain analysis. Amazon's core business operations form the basis of the company's business strategy by offering clients the services they need (Rikap, 2022). Further details are provided below on the five essential processes.
Figure 1 depicts Amazons Value Chain Analysis
3.2 Amazons Vertical/Horizontal IntegrationOther companies who sell on the Amazon marketplace allow customers to purchase items that Amazon does not directly sell. Horizontal integration has failed in fact. The Amazon marketplace places a strong emphasis on vertical integration in addition to horizontal integration. In theory, that is not a new idea. Retailers have been doing this in one form or another for years. However, Amazon has perfected this ability, scaling it up and modernising it.
The range of logistical services offered by Amazon is continually growing and opening up to outsiders. Amazon sources and produces its own private-label items in addition to creating services like Prime or, once more is Kindle. All of these are instances of vertical integration. No other company of its scale has a similar approach to combining vertical and horizontal integration.
3.3 Core CompetenciesAmazon strives to be the "earth's most customer-centric organisation." This example shows how providing exceptional customer service through on-time delivery, first-rate customer assistance, and reasonably priced access to a large selection of things is one of Amazon's key competencies (Furnelli, 2021). Amazon is in an unmatched position to expand its services and survive in a rapidly changing external environment because to its outstanding ability to create, deploy, and restructure its fundamental competencies into durable competitive advantages.
4.0 Synthesis and Recommendations4.1 SWOT Analysis4.1.1 Amazons Strengths Internal Strategic FactorsBrand valuation: Amazon is the third-placed brand in the Interbrand Global Brand Ranking 2021, behind Apple and Google, with a brand value of $249 billion (Flamand et al., 2020).
Amazon has distribution and logistics tactics that are excellent and very effective. There are also set pricing available for a variety of delivery schedules (Baboolal-Frank, 2021). As a result, it provides speedy, secure, and dependable delivery of goods and supplies to clients.
4.1.2 Amazons Weaknesses Internal Strategic FactorsAn easily replicable company concept - In the digital era, online retail businesses are increasingly prevalent. As a result, it is simple for other companies to adopt Amazon's business strategy (Rohilla, 2020). Even some companies struggle to compete with Amazon. Amazon, eBay, Netflix, Hulu, and Oyster are a few of these.
An excessive dependence on wholesalers Overusing distributors exposes Amazon to a variety of risks. Deutsche Post's German Logistics Group One of its largest suppliers, DHL, has the power to revise agreements given its position.
4.1.3 Amazons Opportunities External Strategic FactorsAmazon could get the possibility to expand its company into or into new markets.
Amazon has the ability to improve organisational and technological security measures in order to reduce the sale of counterfeit goods.
4.1.4 Amazons Threats External Strategic FactorsThe commercial operations of Amazon might be harmed by government laws in a number of significant nations. Cuba, Iran, North Korea, Sudan, and Syria are not countries that Amazon ships to.
Connections to worker exploitation - The US State Department is investigating three major US retailers for keeping labor and supply networks that are connected to violations of human rights. One of these firms is Amazon. The titan of e-commerce is now at risk for reputational, financial, and legal problems.
5.0 Innovation Related ProblemEven if the effectiveness of the customer-focused strategy is without question, Amazon.com must cope with a range of internal challenges and worries connected to its strategic management at the moment. The following are the two basic obstacles to innovation that must be removed:
Digital Taylorism and scientific management have a negative impact on the corporate culture of the company, which affects employee attitudes and creates problems in the market.
Once a company has learned its lessons, it may be easy to turn those procedures into set rules that put everything on autopilot and progressively stifle innovation. The status quo is continually reinforced and every mistake or idea that could disrupt it is seen as a problem rather than an opportunity to grow.
5.1 RecommendationsA new HR strategy would be the most relevant and important innovation given that the company lags behind its competitors in terms of management practices (Alshmrani, 2021). Customers enjoy excellent services, while staff members must put up with a lack of consideration for their needs. The tenets of its culture include a focus on the client, long-term planning, innovation, and operational excellence. Amazon shouldtakea universal set of guiding principles when approaching innovation.
6.0 ConclusionEven while the company normally succeeds in providing state-of-the-art goods and services to increase consumer satisfaction, it falls behind its competitors in terms of assuring employee satisfaction (Coelho, 2022). It must change its approach to management in the future and adopt innovative management, including the recommended innovation into an ongoing, well-structured procedure.
ReferencesAlshmrani, H. M. (2021). An analytical view of amazon success in the worldwide.Life Science Journal,18(6)
Baboolal-Frank, R. (2021). Analysis of amazon: Customer centric approach.Academy of Strategic Management Journal,20, 1-16
Baker-Brunnbauer, J. (2019) Amazon Go Store Implications for the Traditional Retail Market <https://www.researchgate.net/profile/Josef_Baker-Brunnbauer/publication/349412426_Amazon_Go_Store_Implications_for_the_Traditional_Retail_Market/links/606601b5458515614d2b61ff/Amazon-Go-Store-Implications-for-the-Traditional-Retail-Market.pdf>
Coelho, M. A. (2022). Sustainable forest management: analysis of eco-innovation process in Amazon.Journal of Applied Research in Technology & Engineering,3(2), 103-114
Flamand, O.J., Wisher, A. & Riley, S., (2020). Strategic Plan: Amazon
Furnelli, A. (2021). Amazon Go convenience stores: skip the lines.The CASE Journal
Mahdavimazdeh, H., Falkenberg, L., & Stackhouse, M. (2020). The Innovation Value Canvas: A Guide to Defining Value Propositions and Target Customers for Commercialization of Technological Innovations.International Journal of Innovation Management,24(02), 2050012
Onyusheva, I., & Seenalasataporn, T. (2018). Strategic analysis of global e-commerce and diversification technology: the case of amazon.com Inc.The EUrASEANs: journal on global socio-economic dynamics, (1 (8)), 48-63
Rikap, C. (2022). Amazon: A story of accumulation through intellectual rentiership and predation.Competition & Change,26(3-4), 436-466
Rohilla, A. (2020).A STUDY ON SUPPLY CHAIN MANAGEMENT TOWARDS AMAZON. COM, INC(Doctoral dissertation)
Sadq, Z.M., Sabir, H.N. & Saeed, V.S.H., (2018). Analysing the Amazon success strategies.Journal of process management and new technologies,6(4)
Sharma, M., (2020) An Organisation Study On Amazon Com Inc.
Soni, R. K., & Soni, N. (2021). An Introduction to Amazon Web Services (AWS). InSpring Boot with React and AWS(pp. 1-40). Apress, Berkeley, CA
Belleflamme, P., & Neysen, N. (2021). A multisided value proposition canvas for online platforms.Journal of Business Ecosystems (JBE),2(1), 1-14
Rodrigue, J. P. (2020). The distribution network of Amazon and the footprint of freight digitalization.Journal of transport geography,88, 102825
Dinesh, S., & MuniRaju, Y. (2021). Scalability of e-commerce in the COVID-19 era. International Journal of Research-GRANTHAALAYAH,9(1), 123-128
TOPIC: INNOVATION AND ENTREPRENEURSHIP
Student ID
24578268
Student Name Ronnie Wilson
Word Count 2300
excluding references, figures and tables and headings, titles
Table of Contents
TOC o "1-3" h z u 1.0 Introduction PAGEREF _Toc113214103 h 42.0 Strategic Analysis PAGEREF _Toc113214104 h 42.1 External Analysis PAGEREF _Toc113214105 h 42.1.1 Customer Analysis of Amazon through Value Proposition Canvas PAGEREF _Toc113214106 h 42.1.2 PESTLE Analysis of Amazon PAGEREF _Toc113214107 h 52.2 Porters 5 Forces Analysis of Amazon PAGEREF _Toc113214108 h 72.2.1 Competitive Rivalry or Competition with Amazon.com Inc. (Strong Force) PAGEREF _Toc113214109 h 72.2.2 Bargaining Power of Buyers PAGEREF _Toc113214110 h 72.2.3 Threats of Substitute PAGEREF _Toc113214111 h 82.2.4 Bargaining Power of Suppliers PAGEREF _Toc113214112 h 82.2.5 Competitive Rivalry PAGEREF _Toc113214113 h 9Amazon Opportunities and Threats PAGEREF _Toc113214114 h 9Opportunities PAGEREF _Toc113214115 h 9Threats PAGEREF _Toc113214116 h 9Market Analysis and Segmentation PAGEREF _Toc113214117 h 10Market Size PAGEREF _Toc113214118 h 10Demographic Segmentation PAGEREF _Toc113214119 h 10Behavioural Segmentation PAGEREF _Toc113214120 h 10Psychographic Segmentation PAGEREF _Toc113214121 h 10Geographic Segmentation PAGEREF _Toc113214122 h 10Price Sensitivity Analysis of Amazon PAGEREF _Toc113214123 h 113.0 Internal Analysis PAGEREF _Toc113214124 h 113.1 Current Value Chain Analysis of Amazon PAGEREF _Toc113214125 h 113.2 Amazons Vertical/Horizontal Integration PAGEREF _Toc113214126 h 123.3 Core Competencies PAGEREF _Toc113214127 h 124.0 Synthesis and Recommendations PAGEREF _Toc113214128 h 134.1 SWOT Analysis PAGEREF _Toc113214129 h 134.1.1 Amazons Strengths Internal Strategic Factors PAGEREF _Toc113214130 h 134.1.2 Amazons Weaknesses Internal Strategic Factors PAGEREF _Toc113214131 h 134.1.3 Amazons Opportunities External Strategic Factors PAGEREF _Toc113214132 h 134.1.4 Amazons Threats External Strategic Factors PAGEREF _Toc113214133 h 145.0 Innovation Related Problem PAGEREF _Toc113214134 h 145.1 Recommendations PAGEREF _Toc113214135 h 146.0 Conclusion PAGEREF _Toc113214136 h 15References PAGEREF _Toc113214137 h 15
1.0 IntroductionInnovation can relate to a method, a new marketing plan, an organisational strategy for managing human resources as well as the execution and administration of these innovations. Since entrepreneurship and innovation are essentially two sides of the same coin, one may utilise the link between the two to explain both ideas. Innovative ideas must be put into action if one is to succeed as an entrepreneur (Soni & Soni, 2021). This essay will look into the external and internal analysis, value proposition canvas and market segmentation to understand the link between innovation and entrepreneurship.
2.0 Strategic Analysis2.1 External Analysis2.1.1 Customer Analysis of Amazon through Value Proposition CanvasProducts and Services
Among the many things available on Amazon.com are books, DVDs, music CDs, videotapes, and software (Mahdavimazdeh et al., 2020). It also covers items for fine dining, groceries, health and personal care, infants, toys & games, and industrial & scientific supplies. In San Francisco, Amazon opened a liquor store in August 2019 (Baker-Brunnbauer, 2019).
Pain Relievers
Payment options, which are trustworthy: Amazon is a dependable, safe, and secure website that offers a simple payment option that is acknowledged and accepted on the site itself. They never solicit or take payments off the internet.
Amazon Premium Delivery: They provide premier delivery, allowing for earlier-than-anticipated delivery of your order (Belleflamme & Neysen, 2021). Delivery fees are often also waived in this situation.
Customer Segment
Gains
Shopping on Amazon is guaranteed to be safe and secure, giving you peace of mind. It provides you with a convenient method of payment and is the only accepted and permitted method of payment on Amazon.
Convenience - Amazon is well known in the eCommerce industry for having one of the most customer-friendly return policies.
Pains
Poor customer service occurs when the CS representative is unable to resolve the problem.
2.1.2 PESTLE Analysis of AmazonPESTEL analysis aids Amazon in understanding the global macro-environment and managing the competition gradually (Onyusheva & Seenalasataporn, 2018). Additionally, it enables them to recognize their flaws and focus on enhancing the client experience.
2.1.2.1 Political Factors
There are two elements, which need to be taken into consideration while analyzing the political issues, which affect Amazon. The first is the requirement for policies to be created in order to lower cybercrime in the Australia. Second, Australian political stability is essential for the projected rising states.
2.1.2.2 Economic Factors
The increase in disposable money among consumers is a great opportunity for Amazon.com. According to the National Retail Federation, retail sales in the US will top $3.8 trillion in 2019 (Rodrigue, 2020). As a result, businesses like Amazon, Walmart, and EBay will have the ability to expand, increasing their market share and reputation.
2.1.2.3 Socio-Cultural Factors
Social trends, practices, and other elements may affect Amazon's success positively or negatively. Staying inside and consuming junk food has a negative impact on the health of both adults and children in America. The government is under a lot of pressure to do what is necessary to raise the level of living for every person.
2.1.2.4 Technological Factors
Amazon strives to make use of technology in its delivery techniques as efficiently as possible. Amazon is vulnerable to internet crime. Concerns concerning sensitive data, such as credit card and debit card information, as well as any private or secret information, are shared by both Amazon customers and third-party merchants. This Amazon Pestle investigation demonstrates that cybercrime poses a serious danger to Amazon.
2.1.2.5 Environmental Factors
Another issue for Amazon is the minimisation of organisational emissions. Estimating the emissions from an e-commerce operation is particularly challenging. As a result, "the carbon emissions considerably increase when purchasers wish to purchase a product in one or two days" was implemented. If you can wait a week, it's like taking down 20 trees as opposed to 100. Protection of the Environment Operations (Waste) Regulation 2014 (NSW) poses effects on the procedures Amazon performs in order to deal with their waste and its treatment.
2.1.2.6 Legal Factors
Customers insist on and value regulations against fake products. Amazon now has the opportunity to increase its efforts to stop the sale of phony items on e-commerce platforms. Amazon already has a procedure in place to deal with fake products. Every product that retailers provide on the Amazon website must be authentic. Selling these products is strictly prohibited by law.
2.2 Porters 5 Forces Analysis of Amazon2.2.1 Competitive Rivalry or Competition with Amazon.com Inc. (Strong Force)The following external factors, in the opinion of Amazon.com Inc., are to blame for the environment's high degree of rivalry or competition in the online retail sector:
Extreme and persistent aggressiveness (strong force)
High frequency of substitutes (strong force)
Low switching costs (strong force)
Retail businesses usually compete aggressively and vehemently with one another. For instance, a direct rival of Amazon.com Inc. is Walmart, a sizable store with a sizable and growing online operation. Since replacements are so freely available, they also have a significant impact on Amazon.
2.2.2 Bargaining Power of Buyers
The focus placed by Amazon.com Inc. on meeting the requirements of its consumers is highlighted in the company's mission and vision statements. The following external reasons support the significant influence that customer bargaining power has on Amazon:Outstanding information (strong force)Low switching costs (strong force)High frequency of substitutes (strong force)Customers can get trustworthy information about the products and services that online retailers provide (Sadq et al., 2018). Due of the low switching costs; customers may quickly migrate from Amazon to other businesses like Walmart. Additionally, clients have more power to switch from one retailer to another due to the availability of options.2.2.3 Threats of Substitute
Amazon.com Inc. faces competition in the online retail sector. The following outside elements confirm the significant seriousness of the risk of replacement in the instance of Amazon:A low cost of switching (strong force)Large number of replacements (strong force)Affordable options (strong force)The performance of the online store is threatened by a powerful force of rivals, a problem that Amazon is always addressing. Customers may readily switch between stores, as seen by the cheap switching costs.2.2.4 Bargaining Power of Suppliers
Suppliers are in charge of the products or commodities Amazon.com Inc. needs for its e-commerce operations, such the hardware parts for information systems.Less than ten suppliers (strong force)A slight forward integration (moderate force)Middle-sized vendors (moderate force)Due to the small population, suppliers might have a significant impact on Amazon.com Inc.'s online business. For instance, changes in the price of equipment from a small number of significant suppliers may immediately affect the company's operational costs for online sales.2.2.5 Competitive Rivalry
Potentially, new rivals may reduce Amazon's market position in online retail. According to the following external factors, Amazon.com Inc. is somewhat vulnerable to the hazard of new entrance.
Low switching costs (strong force)
Expensive brand building (weak force)
Advanced economies (weak force)
Customers of Amazon may just switch to other firms, which may put Amazon under a lot of pressure. This circumstance is due to low switching costs or the minor negative effects of changing service providers (Sharma, 2020). However, the influence of new rivals on Amazon's performance is diminished due to the high cost of brand building in online retail.
Amazon Opportunities and ThreatsOpportunities1. Amazon could have the opportunity to grow its business into new markets (Dinesh & MuniRaju, 2021). This is due to the immense growth in the online retail industry after Covid-19.
2. By establishing more physical locations, Amazon can increase consumer brand loyalty and enhance its competitiveness with big-box retailers.
Threats1. Few problems have harmed Amazon's standing as a brand. Many people reacted strongly and boycotted Amazon in 2010 after it was learned that the book "The Paedophiles Guide to Love & Pleasure: a Child-Code lovers of Conduct" was available there.
2. Governmental regulations in several important countries may jeopardise Amazon's business activities. Amazon does not send to Cuba, Iran, North Korea, Sudan, or Syria.
Market Analysis and SegmentationMarket SizeThis statistic, as of 2020, displays the global market shares of the major e-commerce companies. In that year, Amazon contributed 13% of the global e-commerce GMV, while the top three companies were Alibaba, T-mall, and Taobao, who each had 25% of the market.
Market Segmentation
Demographic SegmentationAccording to a poll conducted in June 2019, 53% of Amazon customers are between the ages of 19 and 44. 37% of Americans, or one third of the population, fall into this age group. The demographics of Amazon's customers therefore show that it serves the ordinary American consumer (Baker-Brunnbauer, 2019).
Behavioural SegmentationAmazon runs its business via behavioural segmentation. In order to better understand consumer behaviour and promote customer loyalty, they arrange their information using a large number of keywords and focus more emphasis on actions than just demographics.
Psychographic SegmentationSocial class: lower, medium, and working.
Living the following way of life: resigned, mainstream, explorer, struggler, aspirant, and reformer
Overall, they divided up all of their clients into the following groups and arranged them by conversion ease.
Geographic SegmentationAmazon offers products in over 100 nations.
Both urban and rural regions should be dense.
Amazon is well known and popular across the world. Their geographic division gives developed areas greater attention.
Price Sensitivity Analysis of AmazonAmazon is well recognised for their repricing method, which is often referred to as dynamic pricing. To understand price sensitivity, consider the fact that juice sales decrease by a factor of 25% while apple nectar prices at a neighbouring facility increase by 60%. With this approach, product prices frequently change in response to pricing policies of competitor firms, supply and demand, and market changes.
3.0 Internal Analysis3.1 Current Value Chain Analysis of AmazonA technique for locating the commercial operations that make up a company's value chain and locating prospective growth opportunities is value chain analysis. Amazon's core business operations form the basis of the company's business strategy by offering clients the services they need (Rikap, 2022). Further details are provided below on the five essential processes.
Figure 1 depicts Amazons Value Chain Analysis
3.2 Amazons Vertical/Horizontal IntegrationOther companies who sell on the Amazon marketplace allow customers to purchase items that Amazon does not directly sell. Horizontal integration has failed in fact. The Amazon marketplace places a strong emphasis on vertical integration in addition to horizontal integration. In theory, that is not a new idea. Retailers have been doing this in one form or another for years. However, Amazon has perfected this ability, scaling it up and modernising it.
The range of logistical services offered by Amazon is continually growing and opening up to outsiders. Amazon sources and produces its own private-label items in addition to creating services like Prime or, once more is Kindle. All of these are instances of vertical integration. No other company of its scale has a similar approach to combining vertical and horizontal integration.
3.3 Core CompetenciesAmazon strives to be the "earth's most customer-centric organisation." This example shows how providing exceptional customer service through on-time delivery, first-rate customer assistance, and reasonably priced access to a large selection of things is one of Amazon's key competencies (Furnelli, 2021). Amazon is in an unmatched position to expand its services and survive in a rapidly changing external environment because to its outstanding ability to create, deploy, and restructure its fundamental competencies into durable competitive advantages.
4.0 Synthesis and Recommendations4.1 SWOT Analysis4.1.1 Amazons Strengths Internal Strategic FactorsBrand valuation: Amazon is the third-placed brand in the Interbrand Global Brand Ranking 2021, behind Apple and Google, with a brand value of $249 billion (Flamand et al., 2020).
Amazon has distribution and logistics tactics that are excellent and very effective. There are also set pricing available for a variety of delivery schedules (Baboolal-Frank, 2021). As a result, it provides speedy, secure, and dependable delivery of goods and supplies to clients.
4.1.2 Amazons Weaknesses Internal Strategic FactorsAn easily replicable company concept - In the digital era, online retail businesses are increasingly prevalent. As a result, it is simple for other companies to adopt Amazon's business strategy (Rohilla, 2020). Even some companies struggle to compete with Amazon. Amazon, eBay, Netflix, Hulu, and Oyster are a few of these.
An excessive dependence on wholesalers Overusing distributors exposes Amazon to a variety of risks. Deutsche Post's German Logistics Group One of its largest suppliers, DHL, has the power to revise agreements given its position.
4.1.3 Amazons Opportunities External Strategic FactorsAmazon could get the possibility to expand its company into or into new markets.
Amazon has the ability to improve organisational and technological security measures in order to reduce the sale of counterfeit goods.
4.1.4 Amazons Threats External Strategic FactorsThe commercial operations of Amazon might be harmed by government laws in a number of significant nations. Cuba, Iran, North Korea, Sudan, and Syria are not countries that Amazon ships to.
Connections to worker exploitation - The US State Department is investigating three major US retailers for keeping labor and supply networks that are connected to violations of human rights. One of these firms is Amazon. The titan of e-commerce is now at risk for reputational, financial, and legal problems.
5.0 Innovation Related ProblemEven if the effectiveness of the customer-focused strategy is without question, Amazon.com must cope with a range of internal challenges and worries connected to its strategic management at the moment. The following are the two basic obstacles to innovation that must be removed:
Digital Taylorism and scientific management have a negative impact on the corporate culture of the company, which affects employee attitudes and creates problems in the market.
Once a company has learned its lessons, it may be easy to turn those procedures into set rules that put everything on autopilot and progressively stifle innovation. The status quo is continually reinforced and every mistake or idea that could disrupt it is seen as a problem rather than an opportunity to grow.
5.1 RecommendationsA new HR strategy would be the most relevant and important innovation given that the company lags behind its competitors in terms of management practices (Alshmrani, 2021). Customers enjoy excellent services, while staff members must put up with a lack of consideration for their needs. The tenets of its culture include a focus on the client, long-term planning, innovation, and operational excellence. Amazon shouldtakea universal set of guiding principles when approaching innovation.
6.0 ConclusionEven while the company normally succeeds in providing state-of-the-art goods and services to increase consumer satisfaction, it falls behind its competitors in terms of assuring employee satisfaction (Coelho, 2022). It must change its approach to management in the future and adopt innovative management, including the recommended innovation into an ongoing, well-structured procedure.
ReferencesAlshmrani, H. M. (2021). An analytical view of amazon success in the worldwide.Life Science Journal,18(6)
Baboolal-Frank, R. (2021). Analysis of amazon: Customer centric approach.Academy of Strategic Management Journal,20, 1-16
Baker-Brunnbauer, J. (2019) Amazon Go Store Implications for the Traditional Retail Market <https://www.researchgate.net/profile/Josef_Baker-Brunnbauer/publication/349412426_Amazon_Go_Store_Implications_for_the_Traditional_Retail_Market/links/606601b5458515614d2b61ff/Amazon-Go-Store-Implications-for-the-Traditional-Retail-Market.pdf>
Coelho, M. A. (2022). Sustainable forest management: analysis of eco-innovation process in Amazon.Journal of Applied Research in Technology & Engineering,3(2), 103-114
Flamand, O.J., Wisher, A. & Riley, S., (2020). Strategic Plan: Amazon
Furnelli, A. (2021). Amazon Go convenience stores: skip the lines.The CASE Journal
Mahdavimazdeh, H., Falkenberg, L., & Stackhouse, M. (2020). The Innovation Value Canvas: A Guide to Defining Value Propositions and Target Customers for Commercialization of Technological Innovations.International Journal of Innovation Management,24(02), 2050012
Onyusheva, I., & Seenalasataporn, T. (2018). Strategic analysis of global e-commerce and diversification technology: the case of amazon.com Inc.The EUrASEANs: journal on global socio-economic dynamics, (1 (8)), 48-63
Rikap, C. (2022). Amazon: A story of accumulation through intellectual rentiership and predation.Competition & Change,26(3-4), 436-466
Rohilla, A. (2020).A STUDY ON SUPPLY CHAIN MANAGEMENT TOWARDS AMAZON. COM, INC(Doctoral dissertation)
Sadq, Z.M., Sabir, H.N. & Saeed, V.S.H., (2018). Analysing the Amazon success strategies.Journal of process management and new technologies,6(4)
Sharma, M., (2020) An Organisation Study On Amazon Com Inc.
Soni, R. K., & Soni, N. (2021). An Introduction to Amazon Web Services (AWS). InSpring Boot with React and AWS(pp. 1-40). Apress, Berkeley, CA
Belleflamme, P., & Neysen, N. (2021). A multisided value proposition canvas for online platforms.Journal of Business Ecosystems (JBE),2(1), 1-14
Rodrigue, J. P. (2020). The distribution network of Amazon and the footprint of freight digitalization.Journal of transport geography,88, 102825
Dinesh, S., & MuniRaju, Y. (2021). Scalability of e-commerce in the COVID-19 era. International Journal of Research-GRANTHAALAYAH,9(1), 123-128
THE SLIDE PRESENTATION (Use Final Pitch Deck Example 3 as it is the one we are going off)
Slide Link: https://www.canva.com/design/DAFOmH3JTtk/Q9G-cGYAVLFS7ZQ2w0lO2A/edit?utm_content=DAFOmH3JTtk&utm_campaign=designshare&utm_medium=link2&utm_source=sharebutton
Slide 2 - What is Reknow
Reknow currently is an AI Summarizer that aims to Repurpose information that may be gained from websites or scholarly articles which ReKnow helps summarises this information to be easily digested in the future. Reknow not only just summarises information but however It has now branched into other ventures such as ReNotes and Simple marketing AI Which are some other services they provide currently.
Firstly ReNotes Records Transcripts of podcasts and summarises that information to its key points and secondly Simple Marketing AI helps companies with social media positing ideas and captions to use to be able to increase creativity
Slide 3 - Online Research: 30 Seconds (Ronnie)
However now looking in to some research shown on the slides we can see the numerous amount of companies that are out there and are currently providing similar services such as reknow.
Reveal Trends of google searches and the number of summarises that arise to show the overcrowded industry (show screenshots
Slide 4 - Our Customers 30 Seconds (Ronnie)
Our current customers are as shown through both our demographic and geographic display
Our Customers for Reknow demographically are all students in the world that need to absorb information quickly through summarization which examples can be seen on this slide.
Due to this service being online it means that our demographic analysis of our customers can be seen global across universities and schools which will allow us to gain a larger market share for the company Reknow
Slide 5 - Target Market Research 30 Seconds (Ronnie)
Individual
Single Use Knowledge
Reclaiming the knowledge
The Reknow Company considers on the market based on the content that looks very competitive these days. Although the AI strategies and applications based on its different kind of settings of web-based search as well as solution.
The target of the company:
Individual
Single Use Knowledge
Reclaiming the knowledge
That terrifying moment when you realise you need to create a whole fresh content it will captivate your readers and persuade them to take some sort of action, whether that be engagement or purchase. Despite your best efforts, you can't seem to come up with anything to write about as you look helplessly at the blank page in front of you. For as little as a few words as well as phrases, our AI will compose a post for you, giving you back the reigns to your marketing strategy in a flash.
Reknow Company provides best solution to its users for the communities, individuals and groups.
Slide 6 - The Problem Explained: 30 Seconds (Ronnie)
Monitoring Performance
Regulation and Compliances
Uncertain Future
Though, there are many solutions provided by the Reknow Company, still it requires escalation towards the future which maybe uncertain. The major problem facing by the company are as under:
Monitoring Performance
Regulation and Compliances
Uncertain Future
It needs growth in the competitive market which is required to perform the Enterprise Brain as a bespoke AI that can be educated using user unstructured knowledge to boost output, improve decision-making, and create new value.Imagine it as a virtual worker who works in tandem with your team of people to ensure optimal productivity at all times. It never takes time off for things like illness or vacation, and it keeps getting smarter and more capable right alongside your company.
Describe the problem and note back to what was shown previously to why this has become a major problem for the company Reknow.
Slide 7 - The Team: 30 Seconds (Liam)
Now to introduce our team of innovators that will be in the production and solution of this problem for Reknow. Firstly, I have myself Liam, and my fellow group members including Samuel, Ronnie, Will, Zhiyu, and Jonah.
We are a multidisciplinary team with the expertise to solve any business problems that arise within the industry. Our team of innovators believe we can assist Reknow in the development and succession of its business, in both the short and long term which leads me onto our next slide.
Slide 8 - Our Solutions: 30 Seconds (Short and Long term) (Liam)
Goes for 45 Seconds
We propose two solutions for Reknow that will help the business in the short term, as well as the long term.
The short term solution is classified as ReClassroom, which looks to expand the business into classrooms. ReClassroom targets schools and the education system as it uses the same concept as ReNotes, yet expands into Classroom discussions. It is predominantly aimed at students within years 11 and 12 who study tirelessly for their HSC.
Hence, our short term innovation idea leads to our long term innovation in introducing the ReKnow App.
The Reknow App is our long-term solution for the company which will create a tangible device for all users. It will be implemented based on the succession and performance of the short-term solution. Also, it uses the same concepts as Renotes, yet it can be used in any environment such as business meetings, researchers, and sports scientists.
Slide 9 - How these Solutions will provide Value: 1min (Liam)
Goes for 1 Min 45 Seconds
Both solutions provide value in different ways and are most commonly effective for educational and business purposes.
It is clear that our short term solution ReClassroom provides value for Reknow through:
Repurposing classroom information.
Summarising classroom discussions.
Easy access to notes and transcripts.
It is apparent that Reclassroom is a sophisticated and valuable short term solution for the company. It aims to assist students to be on top of their school work and not fall behind in any classes. It provides students with access to recorded and transcripted classroom discussions, through AI summarisers which benefits students, especially if they have missed any content. This will relieve the stress as well as the workload of many students and employees within the research and business industry. Therefore, the value creation allows Reknow to be more specifically suitable for students and business employees as it supplies them with summarised notes in case they misinterpret any information.
On the other hand, the ReKnow App provides significant value for Reknow through:
The summarisation of any form of notes.
The easy access.
Helps save a large amount of time.
It is evident that the Reknow App is a durable and valuable long term solution that will be implemented depending upon the succession of ReClassroom. It provides users with access to the Reknow app worldwide, even without internet access or signal. The easy access permits the app to act as a tangible summariser that can be used for business meetings and daily discussions. Lastly, it allows companies to integrate technology into the workplace and relieve some stress on their employees as they can use the app to record and summarise the whole meeting into critical points, which helps save a large amount of time.
Value Proposition for both Solution 1 and 2
Slide 10- Competitive Landscape: 1min (Will)
Following these solutions we now take a closer look at our competitive landscape. In our competitive landscape we have our main competitors and other competitors
Our Main are Quilbot and Scholarcy
Quilbot harnesses AI to alter the complexity of language with tools such as a synonym slider and also integrates directly into chrome and word. Its premium feature is predominantly targeted at individuals rather than businesses.
Scholarcy generates background reading based on the topic being written about. When reviewing another document users can extract tables and graphs to put into an excel format allowing users to run their own calculations.
Genei is another competitor that uses keyword extraction tools to ensure a high standard of understanding and has an inbuilt feature for users to ask questions and gain further insight into a topic. All of the competitors have unique features which enable them to gain market share. Since most of these products have free or free trial versions many consumers will use multiple to decide which one is best suited towards their needs.
Slide 11 - Business model Canvas: 1-1.5min (Key partners, Key Resources, Key activites) (Will)
Building from our competitive analysis we can understand the key partners, resources and activities in the business that currenrtl exist
For Key Partners
For Key Resources..
For Key Activites.
Todo:
Make a Business Model Canvas for Reknow and put in Appendix
Explain the key partners, resources and activities in main slides
Business model
The business model of ReKnow is that it has the business to business model. It provides business service for its clients who wants to analyze its collected data through online website. The key partners are the IT technology developers, investors, data analysis staffs, they are the key stakeholders for ReKnow. Investors provide financial support for this business to setup. IT technology developers are important for them to improve their service as they support to construct the IT infrastructure.
Next I will talk about the business model canvas. They are shown in the table. Key partners are investor, data analysis and other supporting staffs; key activity is to analyze clients data; key resources include financial money and technology analysis; the value proposition is customer centralization; the channel includes both online and offline; its customer segments are based on the customer size, big or small customers and customer purpose. The cost comes from system development labor cost and other cost; the revenue mainly comes from income provided for customers.
Slide 12 - Solution 1: 1 Min (Sam)
Now Looking closer at the solutions we have preiosuly suggested in more detail we can reveal the overall need for it to be implemented into ReKnows future ventures in the short term. The main function of ReClassroom is to provide summarised classroom disscusion for year 11 and year 12 classrooms so they can be repurposed for those who either want to revise certain topics or have missed a class providing a summarised class lesson. We will use the same concept that Reknow currently uses which is Renotes but we will introduce this into the classroom to add another revenue stream for the company and will not need to develop any new technologies due to the current concept just being applied in another industry area. We will be contacting schools and teachers to be able to introduce this technology into the classrooms in orfer to repurpose the work of classroom discussion. This will be a short term strategy due to the low cost needed in trying to introduce this technology into the classroom. With doing this strategy we are only targeting New South Wales schools due to the high importance of notes in the leadup of HSC for students.
Slide 13 - Solution 2: 1 Min (Sam)
Continuing from this first solution, our Long term Solution is the ReKnow App.io. The app will be a portable device in which can be used anywhere and at anytime needed where discussion or meetings occur. This will allow transcripts and summaries to be developed in any conversation needed. This Long term solution will only be able to be developed through the funding of the short term strategy of ReClassroom, and with using these funds we can develop this app for IOS and Andriod Phones. The main targets for this app will be Business owners and employees in coporate business envirometns as they will be the ones getting the most use out of this app due to them have meetings everyday making the app a necessity to them. We aim for this app to be used nationally across australia and we conitnue to develop to all continents across the globe to increase revenue streams dramatically. However this will not happen until 2024-2030 making this an overall long term strategy for the company ReKnow.
Slide 14 - Marketing Strategy 1-1.5Min (Sam)
In this slide presented we have a different marketing strategy for both our solutions for the short term and the long term.
For our short term strategy we aim to target local high schools in sydney due to the product being suitable for these schools and it is a Business to Business marketing strategy. Through this the channels we will market through will be direct to the business schools and through local newspapers in paid avetrtisments. This will be achieved through School newsletters and online email marketing to schools and teachers and overall will try to retain our schools through providing professional services and resorling issues quickly
For our long term strategy we aim to target Business owners, and employees that have reglar meetings weekly and any other people who like to record general discussion. Through this we aim to channel through both digital advertising and word of mouth due to it being an internal service and allows for employees to suggest to their friends and other business owners the servie of Reknow App. COntinuing from this the marketing will be consumed on Tiktok Ads due to it being the most used app currently on IOS and Andirod making our product more known to consumers and overall we aim to retain the consumers through updating our services monthly.
Slide 15 - Thank You for Listening
Slide 16 APPENDIX
Slide 17 - Pestle Analysis of Reknow (Will)
S:The three main factors socially for Reknow are that of the reliance of technology in modern society, increase in online classes and meetings and the overall ageing population. In regard to the reliance on technology in modern society, this has a high potential for it to become reality as it constantly is occurring. This should be looked at monthly as the Reknow team will need to constantly make sure that they optimise the marketing trends in response to AI. The main impact of this on the AI industry is that the exponential increase in reliance on technology increases the consumer need for artificial intelligence. The impact on Reknow is that they should capitalise on this newfound reliance and need for artificial intelligence. The increase in online classes and meetings has a major impact on the AI industry as it already has become a reality. The impact this has had on the industry is that due to COVID, those who were still in school or in the workforce were made to attend online meetings. This has a follow on impact for Reknow as they should capitalise on these new classes and increase marketing as it would save students and employees a significant amount of time. The final Social factor is that of an ageing population. This should be monitored over the next 8 years as there is a prediction that by 2030, 1 in 6 of the worlds population will be over the age of 60. This should be optimised by Reknow by optimising the overall accessibility for those who will be 60 or older by 2030.
P:
The overall political factors in regard to Reknow are obviously integral and need to constantly be addressed. Business taxes are more of a long term factor as the AI industry is still in its infancy. If Reknow realises its potential, Reknow needs to manoeuvre their funds to negate the detrimental impacts of large business taxes. Regulations are also needed to be worked around as in regard to the AI industry, as even though there are still minimal restrictions due to the startup nature of most companies. However they still exist which can prevent further innovation. Reknow is especially affected, as in the long term, due to the fact that they focus on content summarisation. Subsidies are unlikely to occur as funding rarely is
Allocated to this industry, however if Reknow is provided them, they should fully capitalise on this opportunity.
T:
Security protection is needed from Reknow as they could be liable to significant lawsuits if their coding is compromised. This is due to the main purpose of Renow being that of a summary based AI company. This could lead to the leaking of confidential information from major companies. Server quality is also vital as the quality of an AI companys servers, correlates with that of their overall perception. New discoveries are also key as AI is constantly evolving and with significant amount of private and government funding, it is inevitable that some new innovative discoveries will occur. Reknow needs to keep their ears to the ground in terms of new discoveries as it can further establish themselves as a viable option in the AI market segmentation.
E:Emissions are a huge factor in AI businesses as one AI server alone can take up to 250,000 tons of carbon emissions to power. Reknow needs to negate any legal remonstrations by focusing on decreasing their emissions. The demand for renewable energy is also important as finding a way to power these servers without significant amounts emissions would enable Reknow to further enhance their goodwill. Recycling is less of an issue than the previous two but finding a way to use recyclable engines would be ideal for Reknow.
E:
Interest rates, especially at the moment are needed to be monitored by Reknow. This is because they are a startup with the needing of external funds in the form of loans. With the ever increasing interest rates by the RBA, Reknow should invest in loans now before it will become more costly. If Reknow wants to globalise, they will need to implement a strong exchange rate format for their subscription service. This will allow them to fully optimise the buying and selling of foreign equity. Unemployment is vital for Reknow as the lower the unemployment rate, the higher the use of Reknow as the target market is that of business sector employees.
L:Patenting is vital for Reknow if they want to maintain a competitive advantage so that their competitors dont utilise any new innovative coding systems. HR disputes are less of an issue as they mostly are based from home as well as them adopting a more progressive workplace. Trademarking is also integral as the Prefix RE is needed for each new idea and innovation as it follows with their overall marketing strategy.
Slide 18 - Value Proposition Canvas (Will)
Slide 19 - Competitive Analysis (Jonah)
Threat of New Entrants - medium
As seen by the sheer number of ReKnows competitors there is a threat of new entrants in this emerging market. However there are some challenges that a new business would face such as building up online infrastructure which is crucial to an online service. Another necessary step is the development of Capable AI to carry out the service efficiently. The final major milestone is centred around website/marketing development because a business needs to differentiate itself in its infancy to ensure that there is considerable attention around its practicality. However there are many similarities in this summarising tool industry so it wouldn't be too difficult for a new entrant to incorporate common features to the AI summarising Industry.
Threat of Substitutes - Low
This type of AI assisted summarising service has seen a greater shift in demand due to the technological shift, therefore it is an essential tool for summarising information rapidly. All sizes of businesses are considering investing their money into AI tools to increase their overall productivity and keep up with their various competitors. On a smaller scale consumers such as workers in a technology based industry may see AI as a helpful tool for them to do their jobs. It is unrealistic that this industry will face any Substitutes in the near future as big companies have already spent billions in developing and integrating this technology into their business practices.
Bargaining power of buyers - high
The bargaining power of buyers is high as the industry is dominated by subscription based services. These services use free trials as it is an efficient marketing strategy to entice users into making a purchase in the future. Most of these AI tools are subscription based allowing for increased consumer and business freedom when choosing a service to partner with. Therefore the bargaining power of buyers is high as this industry is in its infancy and consumers and businesses are happy to trial a selection of similar services to see which service provides the best value and functionality for their uses.
Slide 20 - Business model Canvas (Zhiysu)
REKNOW THE COMPNAY
Key Activites
Key Reosurces
Key Partners
Cost structure
Value Proposition
Customer Relationships
Channels
Revenue Stream
Customer Segements
Slide 19 - References
From slide 10
Quilbot 2022. Paraphrasing Tool. URL: https://quillbot.com/?utm_medium=paid_search&utm_source=google&utm_campaign=paraphrase_premium_brand&campaign_type=search
Scholaracy 2022. Scholaracy Features: URL: https://www.scholarcy.com/scholarcy-features/
Wordtune 2022. Wordtune Summariser. URL: https://www.wordtune.com
Content Marketing (2021). Top 5 Best AI-Based Summary Generators. Understanding E-Commerce. URL: https://understandingecommerce.com/top-5-best-ai-based-summary-generators/
Gowath Ramesh (2020) Too long, didnt read: AI for Text Summarization and Generation of tldrs Towards Data Science. URL: https://towardsdatascience.com/too-long-didnt-read-ai-for-text-summarization-and-generation-of-tldrs-dc020590aed8
Frontiers (2022) Artificial Intelligence Applications in Reduction of Carbon Emissions: Step Towards Sustainable Environment. URL: https://www.frontiersin.org/research-topics/40836/artificial-intelligence-applications-in-reduction-of-carbon-emissions-step-towards-sustainable-envir
