Strategic Execution and Implementation for Amazon: A Report

This report provides a comprehensive analysis of Amazon's strategic execution and implementation. It begins with an executive summary and introduction, outlining Amazon's overall strategy, which includes marketing strategies like demographic and psychographic segmentation, competitive advantages such as customer centricity and cost leadership, and a detailed SWOT analysis. The report also examines the obstacles Amazon faces in strategy execution, such as sequence planning, lack of resources, and resistance to change. A strategy map is presented to illustrate the alignment of strategies across financial, customer, internal business processes, and learning and growth perspectives. The report discusses aligning actions with strategies, emphasizing the importance of environmental audits and key performance indicators (KPIs). The report concludes with recommendations for Amazon to improve its strategic execution and implementation. It also touches upon marketing mix, BCG matrix, and distribution strategies, providing a holistic view of Amazon's business operations. This report is a valuable resource for understanding Amazon's approach to strategic management.

STRATEGIC EXECUTION
AND IMPLEMENTATION

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
STRATEGY OF AMAZON ...........................................................................................................1
OBSTACLES TO STRATEGY EXECUTION..............................................................................4
STRATEGY MAP...........................................................................................................................4
ALIGNING ACTION WITH STRATEGY.....................................................................................6
MANAGEMENT STYLE...............................................................................................................7
ASSESSMENT AND RECOMMENDATIONS.............................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

EXECUTIVE SUMMARY
Strategies are essential tool which assist in providing proper guideline for work. This
factor help them most in achieving all targets in a proper and appropriate manner. It is a work of
management to formulate schemes on which whole company will lead to work. They divide
separate department managers who look over on implementation of all those strategies. There are
various tools and techniques which are used by a firm in this context. All these methods are
beneficial for an organisation to make a audit by analysing environment (Hrebiniak, 2013).
Along with that with the help of customer satisfaction and comment feedback form an
organisation can adopt valid recommendations in this concern.
INTRODUCTION
Implementation is the process which turns the strategies as well as plans into the actions
in order to accomplish the strategic objectives as well as goals. Every company wants to make
appropriate strategies and also implement them which will help the firm in maintaining the
standard position in the competitive market. Strategic implementation assist in attaining the
success as well as assist in reducing the goals and objectives. After analysis of the market by
adopting the distinctive tools and techniques, the employees of firm have to use relevant strategy
so that they can not face any obstacles in attaining the goals and objectives. The present report is
based on Amazon which is a electronic commerce and cloud computing company (MacLennan,
2010). In the below mentioned report discussion based on the current strategy of Amazon and the
obstacles which they are facing while executing the strategies. Along with this aims and
objectives, vision and mission statement of the firm has to be discussed.
STRATEGY OF AMAZON
Company use marketing strategy in their business. They divide their market according to
demographic and psychographic segmentation. Organisation distribute marketplace according to
the purchasing power of their customers. They want to provide satisfaction to their buyers for
long term. There main aim to target the people of middle class as well as upper class. Their
position in market is very successful because they deliver their goods at every locations. Amazon
also conduct campaign program in various places such as in India they create a slogan
#AurDikhao which made a different place in the minds of peoples (Arvidsson, Holmström and
Lyytinen, 2014).
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Marketing mix of Amazon:
Company sell their products and services through online. They supply various types of
goods such as books, clothes, games, movies etc. Organisation deal at reasonable prices which
will aid them to take competitive advantage.
Product: It is an multinational brand which is selling their goods on internet. People can browse
items according to their choices. They deliver their products by taking help from other
companies. Amazon is the very first company who sale books online. They continuously expand
their business which will assist them to enhance their revenues.
Place: Company's brand image is very high in the marketplace. They have numerous buyers in
all over the nation. Employees of Amazon is also friendly in nature but organisation sale their
products online only (Srivastava and Sushil, 2013). They have their own website and application,
with the help of this clients can search goods as per their needs.
Promotion: Company usually use online marketing as a publicity tool. They also use internet
advertising for their products and services so that if people search goods on other sites they can
find out the ad of Amazon. It will assist them to increase their sales as well as profits.
Price: Value of company's products are reasonable which will aid them to compete their
competitors in the marketplace. Quality of their goods are appropriate so that customers
generally purchase item from Amazon only. Buyers can easily know about the prices while they
search products on their site or application.
SWOT analysis:
STRENGTH WEAKNESSES
 Strong background and deep pockets
 Customer centric
 Cost leadership
 Efficient delivery network
 Acquisitions
 Shrinking margins
 Tax Avoidance issue
 High Debt
 Product flops
OPPORTUNITIES THREATS
 Backward Integration
 Global Expansion
 Low entry barriers of the industry
 Government regulations
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 Acquisitions
 Opening physical stores outside U.S
 Local competition
Competitive advantage in the marketing strategy of Amazon:
Many online sites are acquired by Amazon such as Junglee.com, pets.com etc. It helped
company to enhance their market share as well as reputation also (Liu and Ko, 2011). They
offered various types of products to their clients which will aid them to increase their profits.
Prices of goods are low so that maximum number of customers attract towards Amzon's goods.
Organisation use tools and techniques which will assist them to know about the needs and wants
of their customers as well as they can provide satisfaction to them. Approximately 60% of people
are regular buyers on Amazon which help them to beat competitors in the marketplace. Company
expand their business vary vastly that will also aid them to increase their market share.
BCG matrix in the marketing strategy of Amazon:
There are some business of company which may include in cash cows as well as question
mark and stars also. Some part of their concern provides them maximum amount such as e-
books, Amazon prime etc. as well as there are various goods which are less demanding like
Kindle. Company also deals in electronic item which provide them high growth and market share
(Barrick and et. al., 2015).
Distribution strategy in the marketing strategy of Amazon:
Each and every customers want quick delivery which they ordered online so it is
necessary to make the distribution system more effective and efficient. Strategies which are
made by Amazon regarding this is very appropriate because buyer will get their products within
two to three days. But it is essential for them to improve their services in the remote areas which
will aid them to attract more purchasers towards them. As result to, it will help them to enhance
their profits as well as market share.
Mission:
Amazon wants to focus on their customers so that they can satisfy their needs and wants.
They want to provide their products and services through online. Buyer can buy the goods
anywhere or anytime (Sikora and Ferris, 2014).
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OBSTACLES TO STRATEGY EXECUTION
Given below are the some of the key obstacles that a company like Amazon can
encounter in order to carry out its business operations.
Sequence planning: This is the very first hurdle that a company need to manage to prioritise the
work in such a way that the given target can be achieved in the prescribed period of time.
Lack of resources: Resources are the basic element to carry out any task, therefore, the
availability of it affects the strategy formulation of any business.
Lack of co-ordination: It is very important to know the benefits and importance of a team work
so that the tremendous positive change in result can be seen. This is going to be more efficient
and effective than the work that is done alone (Kuyvenhoven and Buss, 2011).
Resistance to change: Under this people are more often not ready to adopt the changes in their
working environment. The reason could be the fear of loosing their jobs as they were more
comfortable in their previous working styles. Example, introducing new technology.
STRATEGY MAP
It is a document through which the strategic goals of Amazon are chased by the
management and association itself. It represents the distinctive plans of the association in a
simple manner so that the user can get the speedy thought regarding what are objectives of the
business. In the above map diverse strategies are given against for distinct component of the
business.
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Illustration 1: Strategy map
Financial: These are the strategies which are formulated by the management with the prime
target of increasing the estimation of shares in the market. For this it is important to take
powerful investment decisions by the back department of Amazon (Alagaraja and Egan, 2013).
Customer: Strategies are made by the company about how the creation quality can be raised. As
the refered to company deals in the item sort which has many competitors in the market it
becomes necessary for Amazon to furnish customer with maximum satisfaction. Devotion is
another variable that has to be maintained by the business so that the goodwill of the company
can be maintained.
Internal business processes: With a specific end goal to accomplish the targets it is important
for Amazon to keep viable control on various functions that are performed in the business like
monetary, creation, advertisement, item positioning and so on by keeping control over the
operations much costly can be saved which can be additionally used for gainful operations. The
manufacturing department should be checked frequently that climate it is creating superior
products or not as the pattern has now changed (Simerson, 2011). Customers before taking the
purchasing decision assess its quality and compare it with alternate alternatives that are
accessible in the market. Thusly inner strategies are of immense importance to maintain the
brand esteem.
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Learning and growth: Development is the ultimate goal of any business accordingly it is
important that Amazon should work in a manner that it can encounter development on standard
basis. It should formulate viable strategies with respect to the recruitment of employees so that
potential candidates are enlisted which can give the association long haul benefits and contribute
in the development.
ALIGNING ACTION WITH STRATEGY
Strategies are the basic thing through which an organisation lead to attain all of their
objectives in a significant manner. Without any proper planning management an organisation
will not lead to achieve their targets in a signifies time (Parmigiani and Holloway, 2011). In this
relation a firm have to conduct a audit on environment which is oner of the most important
factor. There are various methods which are helpful in this context which are SWOT, PESTEL
etc. All these are helpful for a compete to compete in highly competitive market which is not
possible for small firms. The present case study is all about Amazon which is one of the largest
online marketing company.
It is essential to determine the risk after implementation of strategies. If Amazon wants to take
benefits from market so they have to first formulate such type of guidelines on which their work
get managed. Manager needs to find out the problems and then they have to resolve by
formulating proper plans. With the help of all these problems solving things cited organisation
will lead to achieve all of their targets and objectives in a signified manner.
Key performance indicators refers to the set of measures of the firm which is related to
quantitative in nature which will helps in improving the performance in the market (Čater and
Pučko, 2010). KPI includes the metrics which is used in determining the progress of the business
entity to attain the goals and objectives. Moreover, it also aid in doing the comparison on the
performance according to the finances within the industry. It is the main performance indicator
which assist in measuring the revenue growth. There are two type of KPI that is financial or non
financial. By this they can analyse that the strategies which they are following is it suitable for
Amazon or not.
By consulting various forms of techniques cited company will become able to attempt all of their
goals in a proper time period. This lead in improving their overall performance as compared to
last few years. All these strategies are helpful to them in attainment of projects long term goals
and task. This lead in make their survival and sustainability easy and convenient. Cited firm is
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using hierarchical form of management so that all their work get done in a proper manner. Along
with this according to the strategies which they are using they have to manage their records and
present in front of the stakeholders which will assist in reaping the targets (Jafar and et. al.,
2010). The employees and managers of Amazon have to fulfil their roles and responsibilities.
This assist in providing proper customer satisfied product in target market. Further, leaders have
to provide the proper motivation or encouragement to their employees so that they can deliver
best services to their consumers. The employees of the firm have to use appropriate objectives
and on the basis of that relevant strategies needs to be used which will reaping in aims.
According to that consumers get best and qualitative products.
MANAGEMENT STYLE
All the management have different style of communicating or discussing about strategy
by considering all the facts and figures which are essential and appropriate while preparing a
plan to achieve their particular goals and objectives. In fact interaction about planning is very
much essential and appropriate while making a strategy for effective running of the business. In
other words communicated about scheme is the term which shows the discussion in between
higher authority and lower level for best possible results by attaining the objectives of the cited
company (Wang, 2011). On the other hand Amazon try to resolve all the issues which may
describe in the feedback try to fulfil the requirements of their customers with appropriate
modification. In additional a cited company believes in satisfying the needs and wants of their
customers by modifying their product according to the demand of their clients. Apart from this
they want to implement or conduct various effective measures which may fulfil all the terms and
conditions demanded by the consumers and mentioned by them in a feedback.
On the contrary to this, a cited company performs some specific or necessary reforms in
existing product quality with the help of impressive methods or techniques. Amazon requires to
modify their current strategy as well as revised them to do necessary changes according to the
requirement of the customers. The main motive behind conducting a monitoring programmes is
to get updated about the hidden issues and need of the strategies or to reform according to the
recent trends. Last but not the least a cited organization wants to reforms their existing policies
and strategies due to the emergence of advanced technology as well as innovative ideas. Apart
from this Amazon also try to highlight their enterprise at a marketplace by coming up with
different and unique ideas which may capture the interest of millions of domestic as well as
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foreign clients (Hill, Jones and Schilling, 2014). It means a cited company try to expand their
business across the globe to gain the attention of a millions of consumers with their creativity.
ASSESSMENT AND RECOMMENDATIONS
It is essential for Amazon to deal with the problems so that they can attain the
organisational goals and objectives effectively and efficiently. It is essential that company must
make plan for their work so that they can do their task appropriately. They must focus on their
business rather then investment. They have to fulfil all the legal requirements in their
organisation so that it can be ensured that there is no unethical practices are done. Amazon can
also follow the appropriate model for their enterprise which will help them to achieve the
maximum profits. They need to keep positive attitude towards their company. They have to
move forward to achieve their aim so that they can compete their competitors. The objectives
which they want to achieve must be SMART i.e. specific, measurable, attainable, realistic and
time bound (Hrebiniak, 2013). Company must set long term objectives for them so that they can
gain maximum profits.
Amazon can improve their distribution system in various places such as remote areas
which will aid them to attract more customers towards their company. As well as, they can
increase their sales and reputation in the marketplace.
CONCLUSION
From the above report it has been analysed that employees of Amazon have to use
appropriate and relevant strategies so that they can not face any obstacles in attaining the goals
and objectives. In this assignment, BCG matrix, SWOT analysis, strategic map as well as road
map which will help them in executing and implementing the strategies and according to that
they can maintain their position at the time of high competition. Along with this they have to do
proper risk assessment so that all the strategies properly adopted and use. Different type of Key
performance indicators to be adopted which assist the employees of Amazon in measuring the
performance in the market. Moreover, different management style needs to be used by the
manager which will them in managing the work and on the basis of that they can reap the
success.
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Online:
Defining Strategy, Implementation, and Execution,2017. [Online]. Available through:
<https://hbr.org/2015/03/defining-strategy-implementation-and-execution>. [Accessed
on 7th June,2017].
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