Business Strategy

5872 Words Apr 14th, 2013 24 Pages
Managing Strategy 1
Amazon
STRATEGIC ANALYSIS
OF
AMAZON
Submitted for:
MBA
IN
MS
(MANAGING STRATEGY)
TUTOR:
PAUL ANDERSON
SUBMITTED BY:
C0411672
Managing Strategy 2
Amazon
CONTENTS
Title..................................................................01
Contents....................................................... 02
Introduction.................................................03
Section 1
Current strategic position......................04
Macro environment.................................... 04
Micro environment......................................07
Strategic Capabilities................................10
Section 2
Current and Future strategy..................13
Bowman’s strategy
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In 2007, Amazon launched its first Kindle, used for reading & downloading books, magazines, newspapers, personal documents and blogs.
Managing Strategy 4
Amazon
SECTION 1: CURRENT STRATEGIC POSITION
MACRO ENVIRONMENT:
Macro environment refers to set of uncontrollable and external factors that affect organisations performance and decision making. These include technological, political, economical environmental and social factors. For instance, change in customer buying habits, change in government regulation and change in culture. (Kotler et al, 2010)
PEST ANALYSIS
Pest analysis is based on macro environmental factors consisting, political, economical, social and technological factors. It scans all environmental influences which will affect or which likely to affect an organisation. (Turner, 2000)
Political factors: Political factors have great influence over organisations. Government often intervenes in organisation plans of implementation, development, expansion and decision making. E.g. levying new taxation rules, restrictions on imports and exports etc. (Jobber D, 2006)
Recently Amazon called for new sales tax law in California, because there was no policy to charge sales tax on online retailers before, but in recent amendments in state law of California added that those who have either physical presence or affiliation in California to do business must be liable for sales tax. (Taxnick, 2011), (McCullagh D, 2012)
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Amazon

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