A Critical Evaluation of Amazon’s Strategy, Strategic Choices, Structure, Systems and Culture

7541 Words Jul 5th, 2011 31 Pages
UNISA GRADUATE SCHOOL OF BUSINESS LEADERSHIP

Assignment Cover

Code for paper/module/course MBA 721 & 722

Year 02

Assignment number 01

Student number Group 1

Word count NA

Tutor: Andre Vermaak
|Online Residential School |

Amazon.com

A critical evaluation of Amazon’s strategy, strategic choices, structure, systems and culture

Authored by: L. Gounden, C. Hendrikz, R. Ligault, M. Louw, P. Mathopa, A. Omer, S. Patamadai & V. Pillay

Date: September 22, 2008

TABLE OF CONTENTS

1 Introduction 5

2 Q1. STRATEGY 5

2.1 THE EXTERNAL ENVIRONMENT 6
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A final section concludes the evaluation with a comprehensive summary.

Q1. Strategy

This section examines the nature of strategy formulation and its intent to deliver competitive advantage using the case study of Amazon.com. As such, it looks at the external environment, the internal environment and the fit between the two (Strategic Fit, Grant, 2008).

1 The External Environment

According to Bakhru (2006) an external analysis of an organization should include the following:

• Environmental Scan - monitoring the environment to detect trends

• Examining the macro-environment (Sociological, Technological, Economic, Political / Legal and Environmental)

• Understanding the industry environment in which an organization operates

• Considering industry dynamics

• Competitor analysis, as well the role that co-operation and game theory can play. This external analysis of Amazon.com will be done based on these, and discussed under sub-headings covering each.

1 Macro environment

Global internet use and online purchases increased and were forecast to increase even more (Exhibit 3 and 11), especially in developed countries. Later opportunities may have arisen in developing countries as these populations still did not have ready access to