Amazon Changes: Strategies for Managing Organizational Change

Running head: AMAZON CHANGES
AMAZON CHANGES
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Executive Summary
The report aims to discuss the largest e-commerce company Amazons growth in this
competitive world of business. The changes in the organization has effectively changed the
way the business over internet used to take place in the previous years. The company operates
in more or less every countries of the world and exploited internet service at its best. Amazon
has undergone several changes starting from the product differentiation, change in the
policies, and expansion of the business in different national culture and developing new
process to support automation process. It has started operating in different to the industries
like IT, online retailing, video and film industry and finally in the manufacturing industry
also.
This paper has detailed the operations of the company elaborately and the background of
changes. It will examine the change that the company has undergone to gain so much
popularity among the customers in the international market. It will also discuss the strategies
developed by the organization to manage the changes, and how these strategies have resulted
in the company’s success. The paper will also evaluate the resource implications for not
responding to the changes. The paper has discussed two change management models in
amazon that analyse the strategic intervention techniques of change management. It has
discussed the process of involving stakeholders in the planning of change and evaluate the
systems used to involve the stakeholders in the change management process. The
implications of resistance to mentioned change is detailed in this study and it has devised
some strategies to overcome resistance.

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Table of Contents
Executive Summary...................................................................................................................1
Introduction of the organization and the background of the change:.........................................3
The type of organizational change/changes Amazon went through..........................................4
Factors that triggered the changes:.............................................................................................4
Strategies developed by the organization to manage the changes:............................................6
Resource implications for not responding to the changes:.........................................................9
Planning and managing change................................................................................................10
Determination of the change models....................................................................................10
Determination of the strategic intervention techniques.......................................................12
Involving stakeholders in the change plan...............................................................................13
Devising change management strategy................................................................................13
Evaluation of the systems of stakeholder involvement............................................................14
Implications of resistance to change........................................................................................15
Recommendations....................................................................................................................17
Conclusion................................................................................................................................17
References:...............................................................................................................................18

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Introduction of the organization and the background of the change:
Amazon is the largest online retailer of the world and a pioneer in the online retail
industry. This company started operating as an online bookstore from where the customers
could get books they ordered. Now Amazon has is identified as an American multinational
technology company which focuses on the e-commerce, digital streaming, could computing
and artificial intelligence. Amazon is now considered as one of the largest technology
companies like Apple, Google and Facebook that are dominating and regulating the business
of the world directly (Nadkarni 2017). Amazon is famous for its disruptive actions of well-
established industries through its mass scale technological innovation. This company has
become the largest e-commerce marketplace of the world as well as artificial intelligence
assistant provider and the cloud computing platform in terms of capitalisation and revenue.
This is also the largest internet company in the world by revenue.
The company was established in 1995 at Seattle of Washington as most of the
technical talent was located there (Aboutamazon.com 2019). At that point of time, the
company used to sell only books online and had a limited customer base within US. In 1997,
the organizations went public and started to sell music and videos. From 1998, the company
started to expand itself in the markets of Germany and Uniter kingdom. In these markets the
company started to acquire online sellers of books. From the next year it started to sell
consumer electronics, video games, home improvement items, games, software and toys. In
2002, the company started Amazon Web Services providing data on the internet traffic
patterns, web site popularity and other types of statistics for the developers and marketers. In
2006, Amazon developed its AWS portfolio to rent the computer processing power and
simple storage services. Now the company has entered the whole food market and automated
inventory management systems. Now amazon does not only act as retailer but produces

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products and services like Appstore, Fire Tablets, Fire TV, Kindle store, Amazon studios,
Amazon Echo and Alexa and Amazon prime.
The type of organizational changes Amazon went through
Amazon has undergone several changes starting from the product offering to the
industries where it had been operating for long. Initially, the company had started with the
offering books but now has touched every industry of the business world starting from the
food, film, IT and retail. Amazon has went through strategic changes that included the
expansion of the company in the retail, IT and manufacturing sectors. It has also followed
the process of change in the corporation policies, product differentiation, product
differentiation, and change in the location through acquisition or joint venture (Nadkarni
2017).The success of this company’s venture spurred because if the external changes of the
markets in the 2000s. The company has rightly captured the emotion and expectations of the
customers and catered these needs as efficiently as possible. As mentioned before, the change
in the product offering has led the company to expand its business in the different types of
industries and for this the economic, technological and social changes around the world are
hold responsible. After 2000s, there is an economic and technological boom in the business
industries and more companies as well as individual customers started to find solutions of any
problem by using internet.
Factors that triggered the changes:
Many factors led Amazon to bring these organizational changes and led the company
to respect diversity in terms of products and services. It was clear to Amazon that it can sell
anything that can be found online. Hence the company expanded worldwide and started to
operate around the world through a combination of their localised portals well as globalised
delivery as well as logistics platforms. The organizational changes in the company is mainly

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due to the increase its competitive leverage from the global market. This is the reason why
the company has exploited technology as much as possible and reaped its benefit of the
economies of scale by leveraging the synergy between the internal resources and external
drivers (Demirkan, Spohrer and Welser 2016).
In detailing the factors why amazon had had changed its strategies and business
model from the online bookstore to the e-commerce, digital streaming and cloud computing,
the reasons are to be analysed. Firstly, the company changed the way that the companies used
to sell books but initiated changes in using internet for selling books online. This change was
triggered with the idea that the company had recorded large worldwide demand for literature,
huge number of titles available in print and low unit price of the books (Finer et al. 2015).
Secondly, the company undergo changes in entering the e-commerce market because the
customers worldwide wanted an online platform from where they can buy every important
things they need for their household or personal utility. This is the reason why the company
started to buy products from the manufacturers and then sold to the buyers having a small
margin of profit. It has brought a new wave of innovation in the aspect of product delivery.
Thirdly, amazon decided to enter the manufacturing operation because the process of buying
products from the manufacturers and selling those to the customers was not yielding much
profit in balancing the company’s investment. This is due to the fact the company started to
manufacture Fire Tablets, Fire TV, Amazon Echo and Alexa so that the profit margin
increases. This is fruitful for the company because by manufacturing the products themselves,
the company has increased market reach as this type of product was rare and innovating in
the market in one hand. On the other hand the customers were interested in buying these
products because it had the reputation of the brand (Finer et al. 2015).
Fourthly, the increase of business ventures through internet has driven Amazon to
develop strategies for web services. It was supported by the innovative services like cloud