Amazon: International Business Strategy

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Amazon
International business strategy

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Contents
Introduction about the company...........................................................................................................2
Introduction to the report.....................................................................................................................2
Recent strategic change done by Amazon.............................................................................................3
Strategy adopted by Amazon for bringing the Amazon Go in existence...............................................4
Porter’s five forces of Amazon Go........................................................................................................5
Leadership style followed by Jeff Bezos in Amazon.............................................................................6
Change management style that should be adopted by the organization.................................................7
Conclusion.............................................................................................................................................9
References...........................................................................................................................................11

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Introduction about the company
Amazon Inc. is a multinational company that focuses on the cloud computing, e-commerce
and artificial intelligence. The corporation is the biggest e-commerce service provider across
the globe which is known for offering effective services to its customers. The Jeff Bazos
founded it on July 1994. It has started by selling books, audiobook, MP3 downloads, video
games, electronics, furniture, toys, food and jewellery. It is also one of biggest Horsemen of
technology besides the Apple, Google and technology. Amazon has also established the
publishing arm, Amazon studio. It produces the electronics for customers including Fire
tablets, Echo devices, and fire TV. By doing this, it is one of the world’s biggest cloud
infrastructure service providers. In addition to this, it also has some retail websites for various
countries and also provides the service of international shipping of some products. Approx.
100 million people subscribed the Amazon Prime (Amazon, 2018).
Recently, it has also opened its own store with the name “Amazon Go.” The first store was
opened on the 22 January 2018 at the company’s building. The grocery stores of Amazon
operate in the four major location such as Seattle, Chicago, Washington, and Illinois (Bolman
& Deal, 2017). The Amazon Go stores of Amazon has some automated technologies that
includes the deep learning algorithms, computer vision and sensor fusion for automating the
purchases, checkout as well as payment method of customers. For availing the services at its
store, it has created the app with Amazon Go name. All the cameras as well as stores have
weight sensors for detecting the items that customers have took.
Introduction to the report
In this time, it has become essential for the companies to bring some strategic change in the
company. Due to this, customers are also changing their needs and demand frequently. Due
to this, it is required by the organization to bring changes in its strategy. In order to cope up
with the needs of the customers, Amazon has opened the new store with Amazon Go name.
In this grocery store, the automated payment system has been used for helping the customers
to not wait for long in the billing system. In the first section of the report, strategic changes
made by the Amazon Company have been done. For bringing these strategic changes, it is
also essential for the companies to adopt some effective strategy. The strategy requires
implementing effectively in the organization. Amazon has also implemented the strategy that
is being discussed in the report. It is true that companies adopt strategies in case of any

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change brought in the external environment. Competition and changing needs of customers
are two most important factors that initiate the company to bring some change. The
implementation of strategy has been discussed by explaining the porter’s five forces model of
external environment.
After the discussion of porter’s five forces, leadership style of Jeff Becoz, the founder of
Amazon has been discussed. Every leader is successful by adopting some unique leadership
style. Therefore, report has also highlighted the unique leadership style of Jeff who has
brought successful changes in the company. At the end of the report, suggestions are
provided for adopting the change management style that is more suitable.
Recent strategic change done by Amazon
The biggest e-commerce company has undergone a recent strategic change in order to
transform the grocery shopping experience of customers. It is true that it is most favourite
part of the customers is to wait in long checkout lines. In spite of automation in technology
for faster and easier check out, it is still one of the top most reasons of people to go in a store.
In order to solve this problem, Amazon has come up with the strategic change by “Amazon
Go.” Amazon Go is a chain of grocery stores in four major locations such as Washington,
Seattle, Illinois, and Chicago. It is also said to be “Self-checkout station” for the customers.
In its headquarter, Seattle stores for letting the customers to come and grab the things from
the shelves. After taking the products from shelves, they have to simply go out without even
waiting for too long in the checkout lines. For getting the best shopping experience,
customers are required to simple use the “Amazon Go app” for entering the store, take the
products, and just go outside (Blevins, Khwaja & Yang, 2017). This app automatically
detects what products customers have taken and returned to the respective shelves. Through
this, Amazon will charge the amount from customer’s amount and email the receipt of
amount.
The objective of this service is to transform the current retailing industry by using
technologies advancements. These technologies assist in ensuring that the corporation is able
to exploit the current retailing industry by introducing new technologies which reduces the
customer base from Wal-Mart which is one of the biggest competitor of Amazon in the
retailing industry. It is one of the best strategic changes done by the Amazon in order to