Amazon.com

            
             • High switching costs to find supplier as there is high emphasis on quality and technological advances.
            
             • Reliance on Ingram for supply may prove costly.
            
             • Threat of forward integration unlikely as high capital resources needed to enter .
            
             • industry.
             Threat of substitute-moderate.
            
             • Consumers are able to switch by buying from shops, shipping centers and stores.
            
             • Low brand loyalty for Amazon products increases substitution threats.
            
             • Consumer's propensity to substitute is high as consumers can opt for shopping in shopping centers, supermarkets and hypermarkets.
            
             • Low brand recognition and loyalty for Amazon increases substitution threat.
             6.0) CPM (David, 1998)(refer to Appendix B).
             Amazon is the market leader and the pioneer in the online retailing industry. In order for Amazon to remain competitive in the industry, it must utilize its resources to further expand its business to untapped markets. Besides that, it should focus on it product differentiation, technological development and also its advertisements and promotions.
             7.0) Opportunities & Threats.
             7.1) EFE Matrix( David,1998) (refer to Appendix A).
             The total weighted score Amazon indicated 2.87 which show that Amazon is having an above average score. Amazon must utilize its resources to capture opportunities especially Asia and the Western Europe, as well as untapped market in the U.S. .
             Opportunities.
            
             • Growing internet users in the online industry.
            
             • There is no power house in the online book sales industry.
            
             • There is no power house in the online book sales.
            
             • Internet uses English as the main language.
            
             • Growing Hispanic market on the internet, which also possesses high brand loyalty.
            
             • E-commerce will be the prime economic growth for firms.
            
             • More companies are switching from the traditional businesses to online business.