Amazon Strategic Management

2516 Words Apr 18th, 2013 11 Pages
Part 1- INITIAL STRATEGIC POSITION

1. Introduction

Amazon is the world’s biggest online retailer company, which was founded in 1994 by Jeff Bezos. (Jopson, 2011). It started with an online bookstore, and later expanded its business to other areas with more kinds of products and services such as electronics, computers, clothes, and Merchant Program, etc. Besides, Amazon.com has its subsidiaries around the world, and they are in United Kingdom, Canada, Japan, China, Germany and France.

1a strategic positioning

Strategic positioning is to positively impress customers with the products, image, and the brand of the business, which supposed to be an beneficial option for business development. For company, it is a strategy which can
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Therefore, Amazon will not meet any strong competitors as it will take for a long time to any beginners; finally, for the barriers to entry, e-retail considers to be hard-to-manage business which needs expensive setup cost and maintenance cost of expertise, the possible use of patents and proprietary resources, etc. So it is hugely difficult for the new players.

To satisfy the customers, marketers have to use market segmentation, for customers have different needs and wants. market segmentation is a set of consumers who have similar demands that are not the same from customer needs in other parts of the market (Porter, 1985).
Amazon has segmented its customers into different groups through categorizing customers based on purchase behavior. Memory makes it possible for Amazon to enter into the databases which includes all kinds of customer profiles and history of previously used books and use this data to customize its marketing offer.

Resource Based View
The resource based view of a firm suggests that the sustainable competitive advantage and superior performance of an organization are determined by its distinct capabilities i.e.resources and competences (Johnson et al, 2008). Therefore, in order for Amazon.com to develop,
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