Five Forces Model for Industry Analysis

Inter Organization of Network Economics
Amazon in its efforts to sustain its market leadership in the online retailing industry has tied up with various online organizations. Netscape Navigator and Amazon will offer members of Netscape Netcenter a co-branded storefront where Earth's Biggest Bookstore will be easily accessed through Netscape Netcenter (home.netscape.com). In addition, Amazon.com has multi-year exclusive and premier bookseller relationships with 5 of the top 6 sites on the World Wide Web: AOL.com, Yahoo!, Netscape, GeoCities, and Excite. These partnerships widen Amazon's presence in the World Wide Web.
Sensitivity to Business Cycles
The Online retailing business has a very quick cyclical growth. Amazon being one of the firsts to venture in this type of commerce are all ready in what seems to be in their decline stage where market share is declining. Therefore, Amazon is expanding to different industries within online retailing. Amazon and other online retailing firms are very sensitive to business cycles due to the speed of technology involved in the services they offer.
Dynamics of New Knowledge Generation
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