Risks in Amazon.com
Amazon.com, an American company owned by billionaire Jeff Bezos offers a wide range of services to its customers around the world through its full spread branches of stores. Amazon is facing a wide range of risks that are proving to pose a challenge in its operations. Due to the increased number of online shoppers, Amazon.com is facing stiff competition from other established companies likes Apple, Alibaba, Walmart, and other traditional small vendors. E-commerce, as one of the primary revenue sources for amazon.com, has been dominated lately by companies like Walmart and Alibaba.
The second risk amazon is facing is government regulation, the authorities have highlighted that amazon is exposing its workers to poor working conditions; this was witnessed when its workers raised the issue, and this led them to be sacked. Another risk amazon is facing is due to the delivery of bulk goods through road transport means there have been witnessed several accidents leading to the deaths of its employees. Due to its success, some politicians like Elizabeth Warren has proposed that the big tech companies be dissolved as a result of regulating the profit center.
Amazon has addressed its risks by lowering shipping fees to attract more customers who had deviated from other companies such as Wallmart. Amazon has also adjusted its price logarithm several times a day; this is mainly focused on its competitors.
Just like Amazon.com, Alibaba, a company in the same field, is experiencing the same risk of competition from local companies such as Pinduoduo, which has threatened its stock market value due to the rapid growth of Pinduoduo. Alibaba, on the other hand, has addressed this issue by threatening to prevent several business people who sell their products on Pinduoduo through BABAS platform.