Essay about Business Strategy of Amazon

Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage

Amazon understood firsthand that the competitive advantage of a company originates immediately from how distinctive the organization's resources and competencies are. Amazon is able to both engage in production at a lower cost and generate a superior product at a standard cost. This is accomplished mostly via Amazon's strategy of having a wide variety of goods and competitive pricing. Customers know they can find basic products at slashed prices or high quality goods at standard prices and this is all achieved via the enormous range of products and product brands and types available on their massive marketplace. For example, the depiction displayed in the case study which shows how growth was related directly to: lower cost structure- lower prices customer experience traffic sellers -selection and convenience. While this is a grave oversimplification of the Amazon business model, it demonstrates how many aspects of the strategy reinforced one another.

Amazon and Ebay are two well-known brands of online shopping sites. They have evolved and grown from small firms to the giants of e-commerce today. In this essay, a comparison would be made between the two firms.

How would you define Amazon’s industry? What difficulties do you encounter identifying primary competitors and key lines of business?

As of January 2010, Amazon.com has three times the Internet sales revenue of the runner up, Staples. By offering a large amount of varied categories through its website and other international ones (Amazon.co.uk, Amazon.co.fr, and so on), it has managed to grow to a customer based company with over 30 million people. In addition, the online retail format enables the company to reduce costs of managing inventory (Amazon.com; online bookstore, 2008).

This report has been designed to identify Amazon's strategy between 2007-2010 and also to pinpoint the company's strategic capabilities. Internal and External analysis reveals Amazon's position against its competitors as well as sources of value creation and cost reduction in its value chain.

The Amazon.com mission is one that has a centric value to hold very close for all operations involved, the Amazon.com online customer is first and foremost. Amazon has a clear focus and a solid mission that has imprinted since the beginning. Founder and CEO Jeff Bezos has multiple times referred to the Amazon mission statement as the force that guides his powerful leadership decisions multiple times within the Amazon.com history. The success of Amazon is confirmed as one of the top internet retail companies in the world is due in part of the commitment to their mission and the way top leadership executes. The mission and vision of Amazon is, “Our vision is to be earth 's most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online.”

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.

Jeff Bezos is the fifty two year old Chief Executive Officer and founder Amazon, the largest United States based online retailer. A critical and innovative thinker, he created his online book sales company in his garage and has led Amazon to absolute market domination, technological innovation, and has become the third riches person in the world (BBC.com, 2016). His innovative ideas, demonstrated hard work and discipline, coupled with his ability to envision the future of online retail operations, positions his company at the forefront of the market. And behind the technology, the innovation and the drive to convert cash flows into opportunity, is the underlying commitment to the customer. Jeff Bezos demonstrates the leadership practices described by James Kouzes and Barry Posner’s as the five practices of exemplary leadership, model the way, inspire a shared vision, challenge the process, enable others to act, and encourage the heart (Kouzes & Posner, 2012).

Amazon stated its marketing approach in its 2011 annual report as “we direct customers to our websites primarily through a number of targeted online marketing channels, such as our associated program, sponsored search, portal advertising, email marketing campaigns, and other initiatives.”(Petro, 2017). Being the leader of the ecommerce industry, Amazon maintains that

Amazon must take a strict measure to combat Cybercrime against its online operation. It must strengthen its security efforts. Because Amazon business model is easy to inimitable it faces problems with imitation. These continues threats could reduce the company’s market share. Hostile competition such as Walmart could are an issue for Amazon, Walmart continues to improve their online retail presence. Based on this SWOT analysis Amazon needs to strengthen its marketing efforts and improve on their competitiveness. Amazon has its task cut out as far as its future strategies are concerned and this SWOT Analysis can provide a guide and a roadmap that the company can implement going forward. The key take away from this SWOT Analysis is that Amazon has to focus on profitability and not volumes alone if it has to be competitive in the future where volumes and market leadership are not alone to add value to its

The objective of this case study is to outline and provide a brief overview of Amazon.com’s (Amazon) mission, strategic direction, core competencies, relied technologies and their future impact of new technologies, and how management and use of consumer data will impact future business.

Benchmarking is a great starting point. However, in some cases the performance comparison do not uncover the real scope of the challenge of practical leadership and effectiveness. It can take to an unproductive analysis in the competitive gap identified. Furthermore, it can lead to the development of capabilities that can help to beat the existed and forthcoming competition (Shamma & Hassan, 2013). Amazon’s excellence depends in the attention the leadership keep on customers and maintain the best practice in all aspects of the business. The company knows that thanks to the customers they had succeed in short of period. The well-known marketing note that the “customer is always the king” means that all company decisions should be conducted based on the customer's desires and wishes. Companies need to understand how products and services are supplied and, know how to identify what the business needs to source to meet customer expectations (Shamma & Hassan, 2013).

This paper reviews the supply chain management practices of Amazon.com (AMZN) and highlights findings in the framework of a Strengths – Weaknesses – Opportunities – Threats (SWOT) framework.

This research paper project will be about Amazon.com, Inc. Amazon.com is a shopping site online and it can be access anywhere as long as you have internet. It is a well-known internet-based retailer and it’s available worldwide. Amazon Inc is known for its fastness and convenience, which is a better way to shop for things nowadays, because not everyone wants to go through a hassle of looking for things in store, and having to carry shopping bags from place to place. Amazon.com sells everything, from electronic devices, DVDs, digital movies/music, to household furniture, books, school supplies and beauty products. In my opinion, Amazon.com attracts buyers because they sell products with good deals and sometimes come with free shipping which is always a plus. Specially, Amazon.com sells some products that you rarely or never see in retailer stores. The primarily products that they are known for are their signature Kindle, which is similar to a tablet but its common use is for reading e-books. Amazon.com gets their products from retailers like Nordstrom, Target, Michaels, ... and individual sellers that want to sell their stuff, either used or brand new. Some big companies take advantage and sell their goods through Amazon.com so they can sell more products.