Amazon Ceo Strategy Project

This case study is concerned with the continual roll-out of Amazon’s global strategy through the development of resources and strategic capabilities. It is about global dominance through the development and use of technology and acquisitions and alliances to offer an increasing array of products and services and continually enhancing customer experience. The case discusses the widening of Amazon’s business through serving three distinct and different groups of customers. The case highlights a number of potentially disruptive technologies including Kindle and cloud computing.

Globalization is a growing part of everyday businesses. This is the process of interaction and integration among people, companies, and governments of different nations. With the world of online retail, the buying and selling to one person to another has grown drastically. There has also been a substantial change in technology and what we as people can do in today’s time rather than in the past. Amazon is a huge retail giant and buying and selling items is one of their key functions. The impact made on Amazon is nothing but an advantage. Amazon currently is the 56th largest company in America by market capitalization. Being one the largest retailer around, 15th in the nation at that, Amazon has made a name for themselves. Amazon has made some very substantial growths and with these opportunities they face they can make even more advances in the future. (Globalization 101, 2016)

One of the companies that exploits opportunities and business ventures to create growth and sustainability is Amazon, Inc. Amazon was founded in 1994 and since then it has opted to take its business online and thus develop a global strategy that has paid off and turned the company into a technological business hub that serves consumers by offering an assortment of products and services in a noteworthy customer service. These strategies have made Amazon one of the leading online retailers with a revenue of US$ 88.988 billion as of 2014. This paper thus seeks to describe Amazon’s grand strategies of product development, market development, and concentration as part of its long-term growth strategy.

Amazon.com is a customer centric company. They put more effort in improving their system to make the experience of customer more comfortable so that he keeps on returning to the website. Jeffery Bezos who is the founder of the Amazon.com started this company after seeing the use of internet increasing rapidly.

Describe the values and experience of this unit and how the knowledge gained may help in your managerial techniques in the future. (Around 300 words)

There are many internal and external factors that can affect how a business is developed and maintained. Amazon.com has been molded from many of these factors that exist within their business and their macroenvironment. Macroenvironment is defined as the most general elements in the external environment that potentially influence strategic decisions (Bateman & Snell, 2009). Internal business factors can include new entrants, buyers, suppliers, rivals, substitutes and complements, and the competitive environment Amazon is faced with. The macroenvironment introduces the economy, technology, laws and politics, demographics, and social values that may affect Amazon’s progress as a leading, online retail

Amazon’s margins are shrinking because of the continuous lowest price war and extensive delivery networks that keep customers satisfied (Bhason, 2017). This includes the “same-day shipping,” “next day shipping,” and “Amazon Prime” these services may force Amazon as a whole company to take a loss on overall profits. Amazon is known to be worldwide and has become successful globally, however, in some developing nations Amazon is “struggling” meaning, they are not generating as much profit as they do in their developed areas. These small profit margins affect the overall profitability of the group which can result in high debt (Bhasin, 2017). Lastly, Amazon has suffered from more than a few product flops, such as the “fire phone” as well as the “Kindle fire.”

The business environment is constantly effected by the global economy. This is because of the business cycle causing fluctuations with consumer spending patterns – relating to interest and inflation rates – as well as profitability of the company. Amazons sheer size and heavy dominance over its associated markets enable stability throughout the cycles. Despite changes in the global economy such as interest rates and inflation rates causing consumer spending patterns and disposable income to decrease – Amazon has maintained an increasing level of profit from 1999-2015 (Wikinvest.com, 2015). Thus showing that the global economic crisis of 2008 did not affect Amazons profits to large extent, on the whole. As UK and US markets were declining due

Amazon runs on four principles: “customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking” (https://www.sec.gov/Archives/edgar/data/1018724/000101872416000172/amzn-20151231x10k.htm).

Growth: Amazon will continue to invest in several areas of technology and content to continue to maintain customer relationships and enhance the customers’ experience. Furthermore, there will be more employment opportunities presented in order to achieve successfully technology infrastructure. Through fast

There has been many debates on which Amazon’s success is either good or bad for the greater good. “Amazon's success has come in part from spreading out its bets and investing in so many different emerging markets and technologies. Growth investors would be wise to think the same way if they're not already doing so” (Bowman). Many who aren’t on the opposing side and believe Amazon’s success is for the greater good think retailers and investors are childishly complaining about the situation and aren’t taking vital decisions for their businesses future. However the issue isn’t that investors aren’t making wise decisions, it's the fact that they can’t with so competition to keep up. Amazon is literally taking away any possible opportunities to do so. “Retailers that balance physical and online presence are here to stay. Altogether, retailers providing frictionless shopping experience, online or in-stores, with seamless payment solutions are likely to stay in the market. On the other hand, retailers that have been slow to invest and still relying on traditional marketing methods are bound to suffer” (NASDAQ). Ever since their skyrocketing success, Amazon buys whatever they see in fact, they have bought more than one hundred companies within their decade of only rises. Investors are left only so many choices that they won’t benefit from. This goes the same for retailers who are suffering severely like Sears,who is in major debt; their companies cannot invest in many items because

Group 8d Tutor: Paul Simmonds Candidate Numbers 719250 230316 787051 255769 268704 717398 415529 207314

Innovation: The innovation level of Amazon is untouched. They started with their website. They make it easy to look for products because each product is grouped together and the customer can choose the quality and price they want to pay for the product. The competition requires customers to scroll through each item to find the quality and price they want. They also have fulfillment centers and fast processing times. Amazon has its roots in the publishing industry since it began as an online book store. They took their roots and the knowledge that the world was moving into an era of technology and created an e-book reader called Kindle. In its first year, Amazon sold an estimated 500,000 Kindles. (Johnson, 2010)

3. One possible recommendation is that Amazon could offer to only allow zShops that sell toys notavailable from Toys R Us. This scenario would allow Amazon to honor the exclusivity agreementwith Toys R Us, but continue to realize profits from specialty toy retailers. Toys R Us would benefitfrom this scenario because zShops would not be able to undersell on identical products. Also,consumers who go to Amazon searching for a specialty toy may end up ordering a toy from Toys RUs instead.

One of the weaknesses that Amazon has would be their operational issue. Amazon is a big company and their operational issues should be considered a weakness. The reason why they could possibly have an operational issue can either be that they accidently or purposely overlooked the issue, or assumed that they will be fine and the plan would be successful. Either way, this issue could have been stopped. To big companies like Amazon, receiving a filing complaint should be common but it is not something they should get used to or else it can result in a decrease in reputation, revenue decrease, or even both. But there are some alternative solutions that can be considered.