Amazon has a number of opportunities for ensuring the continuous growth of revenue at rates of double digit for the future to come. However, there is significance of acknowledging the existing significant challenges in the pursuit of Amazon for further gaining shares in the market from developed retailers like Target and Wal-Mart (Silva, 2005). The pressures of profitability have been forcing the company for considering increasing price to the highly popular prime service, and this is one of the crucial challenges that the company might face in the future. Some of the services of Amazon like Cloud and Kindle have significantly increased expenditures all across the organization. Amazon should plan on reducing investment in the initiatives of Cloud and Kindle.
For maintaining the level of competitiveness across the industry, the company should continuously invest in new projects for the generation of more revenue for reflecting the value of the organization. While the key interest of Amazon is in the investments of long term, like distribution centres and video content, key difficulty lies in predicting when there will be realization of the benefits from investments. The growth of Amazon has stopped for some time and there is consistency of margin from a number of years. The company should consider expanding this margin for the prevention of the drop in share price of the company. Overall, there seem to be a number of challenges that the company should overcome. If Amazon is successful in giving a swift reaction, they will gain the ability of maintaining their competitive edge by harnessing the overall scope of core competencies. Continuous success across the emerging market platform will be ensuring that there is a bright future of Amazon.
For the creation of greater convenience and selection for the customers, Amazon should be allowing a number of other retailers for offering their products on the website of Amazon that creates a virtual setting for a shopping mall with significantly incredible proportions. This will further lead towards encouraging customers for the sale of used items across the site. The company of Amazon can be seen consistently looking at new innovative ways for using the power of direct marketing and the Web for creating more selection of shopping, discovery for customers, convenience and value. Direct marketing can be considered to become more oriented with web, and internet based market has started to claim a fast growing share in the sales and spending on direct marketing.