International Business Strategy - Amazon
Added on - 28 May 2020
Showing pages 1 to 4 of 16 pages
Running head: INTERNATIONAL BUSINESS STRATEGYAmazon’s approach towards international business strategyName of the student:Name of the university:Author note:
1INTERNATIONAL BUSINESS STRATEGYAn insight into Amazon’s strategy, culture and resourcesAmazon has achieved accolades and glory by catering to the specific needs and demandsof the customers across the globe. Making effective use of the social media has enabled Amazonto expand the scope and arena of its business. At the end of the third quarter in 2015 inSeptember, Amazon’s revenue achieved a leap by 20% (Amazon.com.sg 2017). Numerically, therevenue of Amazon at this time was 23.2 US billion dollars. The net income of Amazon was 79US million dollars, which was a make up for the loss of 437 US billion dollars. The major drivebehind this was the vision of the personnel towards taking Amazon towards every corner of theworld. For this, the personnel made constructive plans, which emphasized on the judiciousutilization of theresources(Amazon.com.sg 2017). Typical example of this was the plan oflaunching an online bookstore in 1995. This launch was a meager part of the resources plannedfor expanding the arena of the business. The result of this planning was emerging successful inaligning with the specific tastes and preferences of the customers apart from books such aselectronics, apparel, jewellery, home decor among others. In view of these items, it can be saidthat Amazon has enough in its store for fulfilling the needs, demands and requirements of thecustomers (Amazon.com.sg 2017).The major drive behind this is the presence of skilled and efficient professionals, who toilhard to increase the efficiency in the business activities. Exposingstrategic visiontowards theexecution of the business activities assists the personnel to achieve the identified and thespecified goals. Within the prepared strategy, emphasis is laid on the creation of goals, which areachievable and realistic. Evaluation is carried out consistently in order to ensure theappropriateness, effectiveness and feasibility of the goals in terms of the identified and the
2INTERNATIONAL BUSINESS STRATEGYspecified goals and objectives (Amazon.com.sg 2017). Meetings are an integral part of theAmazon business. Members of the board panel are involved in these meetings for providingapprovals to the plans and proposals. One of an innovative concept of this strategic vision is theutilization of survey and the feedback forms. These forms reflect the direct interaction betweenthe customers and the Amazon personnel. Even in the websites, there is a provision of customerfeedback.Dealing with these feedbacks reflect thecultureof the Amazon personnel. After thepersonnel receive the contents produced by the customers, they preserve it in folders. As a matterof specification, privacy cookies are implemented as soon as the customers initiate the process ofsending feedbacks (Amazon.com.sg 2017). These cookies reflect the adherence and compliancewith the standards and protocols of marketing legislations. Along with this, the Amazonpersonnel ensure that while advertising the newly launched products, the individual sentimentsof the customers do not get affected. Behavioral approach of the personnel is also an importantpart of the organizational culture of Amazon. Displaying cooperative approach towards thecustomers enhances the personality of the Amazon personnel. This includes effective handling oftheir complaints, changing defective goods among others (Amazon.com.sg 2017). Patience is anintegral part of handling the complaints and queries of the customers in case of the Amazonpersonnel. The behavior exposed by the personnel is evaluated in the performance appraisalsconducted by the managers. The major drive behind this is to remember the fact that the businessrevolves around the customers.
3INTERNATIONAL BUSINESS STRATEGYMicroenvironment of AmazonMicroenvironment of Amazon relates with theSWOT analysis, which is described indetail in following:StrengthsCost leadershipThirst to do something innovativeFocusing on strategic growthWeaknessDiversion from the focus areaDangers in cost optimization in terms of shipping the itemsFocus on online retailing- an obstacle in business expansionZero margin shipping cost nullify the profitability achieved through theuse of business modelsOpportunitiesInnovation in online payment systemAdvertising products under own brandEscalation in the portfolio offeringsLaunching more websitesThreatsCyber crimesFinancial crisis resulting to illegal scandals and issuesTough competition from the online retailersTable 1: SWOT analysis of AmazonFocusing on the strategic growth helps the Amazon personnel to come out withsomething innovative for the customers. Motivating and encouraging the customers for makingstrategies enhances the leadership of the managers in Amazon (Amazon.com.sg 2017). Delvingdeep into the business of Amazon, it aims towards the achievement of large-scale profit margin.