Amazon Based Business Model Is Based Upon Collaboration And With Collaboration

Amazon Based Business Model Is Based Upon Collaboration And With Collaboration

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Negotiation
Amazon’s coopetition-based business model is based upon collaboration and with collaboration there is a certain level of inherent negotiation required. “A collaborative strategy is one in which both parties consider the relationship and the outcome to be equally important” (Saunders et al., 2013, p. 22). As described earlier, this collaborative approach has only strengthened Amazon. They believe they can win by letting their competitors win also. Not only this, Amazon is also adding value to the organization with this logic. “As customer value is increased when there are a variety of competing offerings in a similar domain (Wang & Xie,
2011), by consciously sharing its platforms to competitors, Amazon.com could enhance such value” (Ritala et al., 2014, p. 246). To achieve this mutually beneficial strategy, Amazon must work with other organizations that have the traits conducive for this interaction to take place. As Ritala, Golnam, & Wegmann (2014) describes, “there must be a high degree of trust, openness, and cooperation” (p. 22).
While it is apparent that Amazon has successfully incorporated their coopetition strategy with outside entities; having established a high degree of trust, openness, and cooperation; that they cannot do the same from within the organization. I see this as a problem. How is Amazon so smart to see how successful their strategy is with other organizations, but fail to see how that same strategy could work with its employees? It seems that while they have engaged in a successful collaboration strategy with their competitors; they are following the competitive model of negotiation within their own organization. The problem with this strategy is that it’s one-sided. “Many negotiat...


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...ed, or be trained to run the Kiva system. In this last scenario, they will need to be trained if this is the case, although I fathom to guess there will be less employees needed since the robots themselves are autonomous. Also, these may be specific skills which may require a higher education level which HRD cannot train current employees. These are real issues that HRD faces in their developmental activities and creates new challenges for Amazon.
Lastly, it is important to stress the importance that top executives; lower-level management, HRM, HRD work together towards Amazon’s strategic goals. While it is important to train individual employees, enhance their KSAOs; empower, and motivate them, it is equally important that everyone works together to effectively utilize their employees towards the organizational mission, vision, and strategic objectives.

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