A01 chaf6542 06 se fm indd

Competition

In its SEC (2005) filing Amazon describes the environ-

ment for its products and services as ‘intensely competi-

tive’. It views its main current and potential competitors 

as: (1)  physical-  world retailers, catalogue retailers, 

publishers, vendors, distributors and manufacturers 

M12_CHAF6542_06_SE_C12.indd   642

7/22/14   1:41 AM

---

of products, many of which possess significant brand 

awareness, sales volume and customer bases, and 

some of which currently sell, or may sell, products or 

services through the Internet,  mail-  order or direct mar-

keting; (2) other online e-commerce sites; (3) a number 

of indirect competitors, including media companies, 

web portals, comparison shopping websites, and web 

search engines, either directly or in collaboration with 

other retailers; and (4) companies that provide e-com-

merce services, including website development,  third- 

 party fulfilment and customer service.

It believes the main competitive factors in its market 

segments include ‘selection, price, availability, con-

venience, information, discovery, brand recognition, 

personalised services, accessibility, customer service, 

reliability, speed of fulfillment, ease of use, and ability to 

adapt to changing conditions, as well as our customers’ 

overall experience and trust in transactions with us and 

facilitated by us on behalf of  third-  party sellers’.

For services offered to business and individual sell-

ers, additional competitive factors include the quality of 

their services and tools, their ability to generate sales for 

third parties they serve, and the speed of performance 

for their services.