Adam Smith once described competition in a market economy as “the invisible hand” that guides the economy. For economic growth to occur, competition is necessary. It drives productivity, innovation and high quality. When there is competition, most companies focus on product differentiation, gaining market share, and product innovation. To remain competitive, companies must be able to analyze the internal and external environment and develop business strategies based on their findings. By performing an external analysis, companies can gain a better understanding of the opportunities and threats within their industry. It is important to recognize that both opportunities and threats are independent of the company. This external evaluation will be based on a competitive analysis evaluating performance. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Competitive Profile This section will analyze Amazon Inc.'s key success factors and market performance compared to Walmart and eBay through the use of a Competitive Profile Matrix (CPM). The purpose of the Competitive Profile Matrix (CPM) is to identify a company's strengths and weaknesses and then compare them to those of the competition. Using the industry's critical success factors, a company can make an in-depth comparison between its key rivals. Based on the results, companies can determine which strategies need to be improved or what should be eliminated from their business plan. Amazon, Inc is a relatively young company but with an exceptional track record. Founded in the early 1990s by current CEO Jeff Bezos, the company has managed to become the first of its kind. When we discuss the success of a company, we need to analyze its business model and thoroughly study its business strategy for sustainability and growth. One of Amazon, Inc's strengths is its product diversity, customer loyalty, brand awareness, and financial position. Based on the score weighted against Walmart and eBay, Amazon is outperforming them. Amazon's weighted score was 3.45, while Walmart's weighted score was 2.91 and eBay's was 2.93. However, Walmart can be considered Amazon's main contender, partly due to their recent entry into the e-commerce industry. Innovations like online grocery shopping and website design have helped Walmart's earnings surpass what Wall Street originally expected; $122.69 billion versus $120. 51 billion. On the other hand, eBay's revenue met expectations according to Yahoo! Finance. Analysts expected a profit of $2. 31 billion, later the company recorded 2 dollars. 33 billion in revenues at the end of the fiscal year. Competition with giants like Amazon and other companies joining the e-commerce movement has forced eBay to adopt new strategies. According to CEO Devin Wening they have "made significant progress to modernize eBay and drive growth by improving the customer experience, building a product catalog that covers more than half of our inventory, and strengthening the eBay brand." The CPM above shows that Amazon dominates the market within the same sectors as Walmart and eBay. In terms of revenue, Amazon's net sales were $136 billion in 2016; $94. 7 billion come from products and the rest from services. An EFE matrix analyzes opportunities and threats much like a SWOT analysis. The purpose is to get a general idea of ​​how a company is performing based on important factors.