3). Amazon identifies product selection, price, and convenience as the major competitive factors for its retail business, as well as quality, speed, and reliability, for its seller and enterprise services. Amazon’s strong brand recognition and its continued efforts to enhance customer experience represents one of Amazon’s major competitive advantages. On top of that, it is the low-cost operation of its online platform that allows the company to charge lower prices and strengthen its competitive position. Possibly one of the most significant advantages that Amazon has is their fulfillment centers are more cost effective and also easier to scale than having a large physical presence like traditional retailers. Additionally, Amazon has cost advantages from current U.S. tax laws, where online retailers only have to collect sales taxes in states where they maintain a physical presence (Amazon’s report 2015). Another unique advantage over competitors is a so-called network effect, which essentially is a result of Amazon’s low prices, vast selection and user-friendly interface. These attract millions of customers, which in turn either attract other merchants to the Amazon platform or encourage wholesalers and manufacturers selling directly to Amazon. This effect is further intensified through additional …show more content…
They are held accountable through the Corporate Governance Bylaws, the Code of Business Conduct and Ethics, and the Corporate Governance Guidelines. The Board of Directors of Amazon consists of three main committees, which are Audit Committee, Nominating & Corporate Governance committee (Amazon’s report 2015). Bezos hold the position of Amazon’s CEO and Chairman of the board at the same time. Usually such position structure may lead to over-concentration of power to a single person, leading to problems with respect to internal governance.
Unlike most big companies, Amazon has never published a sustainability report or made it a visible player in the environmental arena for which it had been scrutinized for neglecting corporate responsibility towards the society. Until the last few years Amazon.com recognizes the importance of good corporate citizenship and is committing itself to sustainability and social responsibility. The Company’s Board believes in the importance of company’s policies and programs regarding sustainability that reflect the unique nature of the Company’s operations. Amazon regularly considers environmental, social, and governance issues in their business and continue to develop and improve its sustainability practices. In June 2015, Christine Bader was appointed as the new director of social responsibility, which indicates that Amazon is paying more attention to its CSR now. Amazon is running