• Growth in market in Asia and Western Europe.
• High success rate because major players have only captured a small significant share and e-commerce has a small share in the total commerce.
• Amazon is recognized by only 25% of Americans, which shows that there is a big market to tap.
• Internet traffic is expected to increase as new internet jobs and web sites are being created are being created.
Threats.
• Consumers are not comfortable with ordering online.
• Consumers surf the web site to gather information and price, but purchases products from local shops.
• Consumers reluctant to buy online for fear of theft of private information.
• Consumers find it difficult to return merchandise which is defective.
• Companies who do not go online would lose its market share and its competitiveness.
• New firms unable to compete due to lack of capital resources when compared to major players.
• Market in America reaching saturation due to heavy competition.
• Substitution is high and easily accessible.
8.0) Internal assessment .
8.1) Value Chain (Miller, 1998).
Inbound logistics.
• Proximity to the warehouse makes it more efficient for storing and distributing of goods.
• With the purchase of extra warehouses, firm is able to stay more competitive.
Operations .
• With its cost leadership strategy, it saves cost on its building and maintenance cost.
• Efficient operations enable it to save on overhead costs.
• Has the latest technology to track customer preferences and personalize its shopping experience.
• Effective distribution centers lead to better control and utilization of resources.
• Highly skilled employees ensure efficient production and reduce cost and time.
Outbound logistics.
• By increasing its number of distribution centers, it would further enhance the efficiency and reliability of its distribution centers.