What Is The Bcg Matrix Of Amazon

Facts Surrounding the Case. According to Lisa Mahapatra’s (2013) article, “Amazon.com Has Second Highest Employee Turnover Of All Fortune 500 Companies”, Amazon.com has been placed 2nd in highest employee turnover rates by a special report from Payscale. In addition to this bad press against the company, Steven Barker, a former Amazon.com contract worker, criticized CEO, Jeff Bezos, in an open letter on the CEO’s hiring techniques. The letter states that “The company has a policy of hiring temp contract workers who are let go after 11 months to save on benefits like medical coverage and paid vacation days” (Mahapatra, 2013, para 1-2). Management at Amazon has to research why employee turnover is so high, and then research how to fix this issue to make Amazon more productive and efficient.

In the article, “Amazon.com is a 21st century Deal with the Devil” the author Amy Koss makes her piece an argumentative writing. She tries to persuade the reader that the company, Amazon, is cruel and untrustworthy. The author states,”They’re offering deals and deeper discounts, closing branches, consolidating staff, trying to fend off the inevitable. According to the feds, there have been 60,000 retail jobs in just the last two months.” I disagree with the author’s statement and believe that Amazon is just doing what they have to do, so they can make money and build a stronger business. It isn’t exactly Amazon’s fault that other businesses are closing making people loses their jobs. The other businesses must have their prices very high, making

Amazon employees are left feeling angry because they are being given low-paid wages for overworking. This effects Amazon heavily as they are having employees leaving the company and the company it's self has to bring in agency workers as temporary employees. This would mean

Amazon has earned a great reputation in customer service for allowing customers to shop without face to face, avoiding talking to a customer’s service representative agent on the phone, everything it done online. Sales clerk does not exist, everything is ordered with a click of the mouse, and arrives extremenely quick in the mail (Cohen, 2009). Amazon at interval has gotten involved with the customers when they can have too. According to Green, H. (2009), “Amazon stands out most markedly from other companies, and helps explain how the company earned the No. 1 spot on Business Week’s customer service ranking this year”( para. 1).

Unfortunately, Bezos autocratic style has had profound effects on Amazons culture. Perhaps most importantly, Bezos has created a culture of metrics. Consequently, it has led to a competitive atmosphere, which has created an uncomfortable working environment for many employees. For example, some employees have sabotaged their cohorts

While the leader of Amazon, Jeff Bezos’s focus is customer value, he shares this knowledge and skills to other leaders and other employees. Jeff Bezos shares his vision of his management team leaders, which includes solid training for customer value proposition. Jeff Bezos shares his believes of listening and understanding the customer’s needs/want is critical to the organization’s success. “…the incentive here is for managers to immediately be placed in the mindset that Amazon’s philosophy is about listening, and most importantly, understanding the customer.” (Baldacci, 2013) Amazon’s leader Jeff Bezos is aware that customer value is the key to the organization’s success. In order to sell the company’s product/service, it is very

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.

Amazon focuses on global reach, putting customer first,, and extensive selection of products through its vision which is “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online” (Gregory 2016).

Amazon’s core competencies are in its ability to effectively use and develop technology to drive site traffic and enhance the customer experience. Their distinctive use of website real estate coupled with their ability to leverage their brand and effectively use that leverage to deliver low prices and high quality products, makes them a leader in online retailing. Their partner brands and their ability to adapt and recognize deficiencies enable them to effectively cut out the middle man, or at the very least, partner with them.

The corporate culture at Amazon can be described as a task culture according to Charles Handy’s theories of corporate culture, where the main focus is on getting results from the work done. Individuals and teams are empowered to take responsibility and make a contribution. As a result, formal job titles are of less importance, as the emphasis is put on their contribution and problem-solving abilities. (Hoang 194). Amazon has created a sense of belonging and unity within its’ workforce by installing the idea that anyone can contribute. This can be seen through the 14 leadership principles that Amazonians refer to as the “articles of faith”, outlining how employees should act. It is at the core of Amazon’s corporate culture; It’s used in daily rituals, in hiring, at meetings and are quoted in food-truck lines at lunchtime (Streitfeld). Most importantly, it applies to all Amazonians and they are told each one of them is a leader (Sanghani). For instance, the co-inventor of the delivery-by-drone project announced in 2013 was a junior level engineer (Streitfeld). Therefore, the task-oriented culture can be the source of the stressful work-environment stress despite fostering motivation and responsibility within the employees.

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.

The company has many strengths. First, Amazon is the world’s leading online retailer. According to the 2016 Annual Report, Amazon had total net sales of US $135, 987 million in 2016. These total net sales include three segments which are North America, International, and AWS. Second, in comparison to many companies, Amazon has a superior logistics and distribution system, which allows the company to actualize improved customer fulfillment. Third, with its prolonged strategic drive on low-cost, differentiation, and focus, Amazon offers a wide range of product at low prices to customers. Fourth, Amazon enjoys global recognition from its customers. As stated earlier, Amazon built a strong brand in very little time. Finally, the

Amazon has grown rapidly since their inception. The company experienced a surge is sales of 313% until 1998, supported by 8.4 million customer accounts in over 150 countries, of

While Amazon faces many issues in a rapidly changing economic, political and global environment, this paper will focus on how Amazon can increase loyalty among its customers and continue to differentiate