Amazon. Com: The Growth Strategy Of Amazon

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Growth strategy is the main means through which any organization plans to achieve its set objective to grow in level of income and capacity of its sales. The main strategies include the development of their product, diversifying, the development of market and its penetration. Amazon.com, an online retail company that provides a variety of unique products and services to its customers at cheap prices via the internet, for the past five years have tripled its sales to more than $60 billion a year. The company’s willingness to take a large hit on its margins has contributed significantly to its 35% to 40% revenue growth in past quarters. To increase the company’s income and sales, it has utilized a number of strategies (Form 10-K, 2014). This includes; investing in the growth of its digital services. This strategy is seeing strong growth and segment. Analysis shows that Amazon Web Services has operated up to annual revenue rate of over $2 billion over the past years. The introduction of new tablets such as Apple’s iPad mini and Microsoft’s surface tablet pose greater competition for the tablet market. Amazon has been able to compete in the tablet market in the past because of its Kindle e-readers that have been priced lower than the iPad. The company is investing in the online video industry. It has entered into several and expensive contracts with the aim of building digital media correction. The company has recently entered into a multiyear agreement with Viacom to license television shows, including children’s shows like “Dora the Explorer” and “BobSponge Square Pants.” (Tsukayama, 2013)
Transformational growth in its white space. Viable and innovative business model built around a market-changing customer value proposition and a ...

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...ly and will continue to do so for the foreseeable future as compared to the U.S. financial system facing unprecedented reorganization—after one of its worst crises ever. International revenues have been hurt by the European market conditions and there are reports of relatively subdued 13% growth to $6.21 billion. European market underperformed U.S markets and their development will increase in the performance of the European market. This will definitely increase the current earnings of the Amazon.com. The company is facing major shifts towards cloud computing and system infrastructure. As online shopping becomes more popular processing orders and distributing merchandise becomes more complex and difficult. Growth of market in various countries traded by Amazon.com including Europe will need taking the precautions to deal with increase in demand. (Schepp, 2009:12).

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