Strategic management is a business concept that consists of decision-making, analysis and actions an entity undertakes with an aim of creating and maintaining an upper hand. This concept involves three processes; analysis, decisions and actions. It involves the analysis of strategies and the internal or external environments of the entity. After the analysis, strategic decisions are made, covering local and international operations. Using of strategies requires proper allocation of the important assets. Technology has important effects on business operations. Regardless of the span of your enterprise, technology has both tangible and intangible benefits that will help you make profits and create the outcomes your customers demand. Technological …show more content…
is a global company that offers internet retail shopping services. Amazon was an online book retailer established 21 years ago during the 1994s, and has grown exponentially in sales and size as the years have gone by. Jeffrey P. Bezos started it in July 1994 and has led to its success. It was possible because of the strategies Amazon used. Emerging of online banking on the internet gave rise to the idea of online shopping. To become a competitive firm strong strategies are to be made. Amazon positions itself as a low-cost retailer and offers a wide range of products and services via online which is unique in the internet retail business. Amazon competes healthily and preserves its competitive advantages as it constantly upgrades itself in the dynamic market. It also shows that Amazon can continue to grow and achieve it mission and vision of being "earth's most customer centric …show more content…
Amazon has discovered ways to reduce cost by using practices that are both efficient and effective or by employing a different technology. For example, Beats Headphones are one of the most high-end Headphones available within the Music market and are sold at a much cheaper price than the actual MRP. Amazon, along with reducing the cost, have warehouse in rural areas where the land is cheaper comparing it to that of urban or sub-urban areas. Amazon use corporate strategies as well, the strategy to grow through mainly focusing on customer experiences. Looking into the Ansoff matrix we can see that Amazon was able to adopt all the 4 strategies. They have been able to penetrate the existing market, diversify, and develop products and markets. Technology advancement helped Amazon revolutionize the book industry. As the firm expanded Amazon diversified not only by selling books but albums, movies, toys, clothing, and electronic items along with second hand
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Is Amazon a bubble waiting to burst? The following discussions in this research paper will explore several key issues from its birth to its debatable future. Amazon is not a stranger to arguments revolving around questions of its longevity and success. When the systemic bubble of 1999 arrived Amazon’s corporate goal was to get big, to do it fast, and to establish a hold of new markets before any other competitor. During this time frame Amazon began branching out and selling anything and everything. With the burst of the internet bubble in 2000 and 2001, Amazon changed its goal from growth to aggressively making profits in all areas of their business. In 2001, Amazon’s founder and CEO stated in a Wall Street Journal article “We’ll ferociously manage the products we carry so that we sell only products that are profitable. The thirty-pound box of nails isn’t long for our world” (Elmer-DeWitt, 2001).
Amazon has grown to become the largest internet-based retailer in the world by total sales. It began as primarily an online bookstore and soon began to sell more and more electronics and then over time began to sell pretty much anything. In 1998, Amazon earned about 0.6 billion dollars, it held a steady growth from 1998-2006 (“Amazon.com”). From
This strategy can benefit the company and its employees by direct and strict policies, in which it will relay to the employees to work harder and keep improving. In addition, this hard work and constant progress can result to the employees deeply appreciating their work and become more confident about themselves. If both the employee and managers are pleased about the performance and outcome, then the customers too will appreciate the service and product they receive. Also, a customer who becomes satisfied with their service will most likely become a loyal customer. In turn, the company will gain growth in profits and recognition from other customers. A successful business model or strategy like Amazon’s should be adapted by other companies to ensure the success and development in both the company and its employees. Just like what David Rockefeller said, “Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever
It was 1995 when Amazon opened its virtual doors for business. Since its inception Amazon has become the world’s largest e-commerce retailer by diversifying its portfolio. Amazon operates retail sites for twelve different countries. (Amazon.com, 2014) Amazon consists of over fifteen lines of business such as AmazonPrime, AmazonSupply and AmazonWarehouse Deals. Amazon reports their income in American and International segments. The segments are split into media, electronics and “other” which is described as “non-retail activities”. (Amazon.com, 2014) This paper will evaluate Amazon’s strategic planning.
A cost leadership strategy is where that the price is similar or the lower rate from the products of the other companies so that Amazon can achieve the success in the competitive market. By adopting these strategies company need to know that where they want to focus, which type of services they have to increase and for the products and the services Amazon create its value for the lower cost of the product in the competitive market (Wong and Karia, 2010). Amazon have to sell the products at the low price from the other companies and the services which are provided by them they are good and the customers are satisfied by them. Then only enterprise can achieve the success in the competitive market and achieve the targets which are per decided by the entity. Amazon has doing the business in partnership with the Morrison by that company make a new products and increase their consumers. Now the Amazon has entering in the grocery retail market has also put the pressure on their supermarkets to setup their e-commerce business. Amazon has the capabilities to establish any type of business whether it is of grocery or selling the different products. It increases the profit of the company by selling the new products and increases in the consumers (Kindström, 2010). Amazon uses the different strategies is more a cost leadership with compared to the one or more retailers. Amazon give the different and better facilities to their consumers and having a capability which gives the physical economies of the scale. Amazon provides the advantage of the cost and provide the different services so that entity can attain the success. Amazon have to take a feedback from the consumer about their products that the company provided those products by that consumers are satisfied or not. It spread the consumer focus
This case analysis serves the purpose to provide an analytical framework to evaluate Amazon.com from an internal and external perspective, and to provide strategic direction based upon the internal and external evaluation. The case will begin with an introduction to Amazon.com.
2. Amazon had a business model that was posed to expand its strategy to include partnerships with established retailers who wanted to streamline their online capabilities. Under this model, Amazon acted as a logistics provider and helped such companies upgrade their online distribution systems. These 3rd party partnerships with large retailers would broaden Amazon’s service offerings and create allies with retailers ...
The Company offers its customers the lowest prices probable through low everyday product pricing and shipping offers, including through membership in Amazon Prime, and to improve its operating productivities so that it can continue to lower prices for its customers. The Company also provides easy-to-use functionality, fast and dependable fulfillment, and timely customer service. It offers programs that allow sellers to sell their products on its websites and their own branded websites and to realize orders through them.
Amazon Inc. is an e-commerce corporation that happens to be one of the sustainable online retailers in the United States. Just last year, it was reported that Amazon has exceeded Wal-Mart as the most valuable retailer in the United States. Starting off as an online bookstore, the company has grown since 1994 when the CEO Jeff Bezos introduced it. Over the years they have branched out to selling electronics, food, clothes, toys, and furniture. They have also developed their own line of products such as the Amazon Kindle, Fire Phone, and Fire TV. With 470.84 millions shareholders, Amazon (AMZN) is definitely one of the biggest corporations on the NASDAQ stock market.
Amazon’s macro-environment is made up of six external factors: political, economic, environmental, technological, social, and legal conditions. These factors are important because they shape how the company operates and you must know each piece to be able to compete within the retail and eCommerce industry. An evolving political factor are the efforts the government has made toward punishing offenders of cyber-crime. This kind of thief wasn’t walking into your store, but hacking into your computer. This type of crime wasn’t possible before the internet. The government has started to take these crimes more serious as technology evolves. Technology is a factor that Amazon.com must invest heavily in. They are reliant on having top of the line technology to survive against cyber-crime and to stay relevant in the tech world. ECommerce is everywhere now and competition is very high. This brings in legal conditions; Amazon must know what laws exist in which countries because they are a
With very humble roots, Amazon.com grew itself from a tiny garage start up in 1994 into a multibillion dollar corporation in just twenty one years. Jeff Bezos, the founder of Amazon transformed a modest book selling website into the largest online retailer of all products which survived a giant collapse in the economy and the dot com bubble, helping Amazon start its own agenda. Amazon was vastly different than many other dot com startups due to its realistic, long term, and growth focused agenda, which greatly differed from the unrealistic, quick online startups whom mostly disappeared during the decade. Amazon has been one of the frontrunners in the new digital world, by displaying a progressive business model that builds for growth, and creating a positive future for
Amazon has been able to maintain sustainable competitive advantage based on three operational strategies. These are low cost-leadership, customer differentiation and focus strategies. Low cost-leadership is pursued by Amazon by differentiating itself primarily on the basis of price. By offering low prices to customers Amazon ensures its future success. Partially modifying the costs of lowering prices over time through achieving higher sales volumes, negotiating better terms with suppliers, and achieving better operating efficiencies. Amazon makes sure that it offers the same quality products as other companies at a considerably cheaper price. Another strategy that Amazon has is its fast delivery service and there are many delivery services that one can choose from. With Amazon Prime, there are certain, but many products that have free two-day shipping. Also, with Amazon Prime, there are many offers specifically for people that have Amazon Prime. For example,
In conclusion, Amazon has embraced innovation. The company has not had worries with the use of innovation. They use innovations as measurements and end up with flourishing business ideas. They experiment, learn through outcomes and try new ways of doing things. They have put the customer as their first priority. Everything that the company does gears towards attracting customers through quality of services, availability of products, assurance of delivery and addressing customer feedbacks. These factors have helped the company become a multinational and a multimillion company where customers flock everyday.
Amazon creates value for its customers by offering customer satisfactory services by managing retail operations with efficient use of technology. Operational efficiency is the strength of Amazon.com and supports the management to maintain its competitive advantage and enhance corporate performance.