Amazon's Strategic Management: A Comprehensive Analysis
Added on 2024-06-24
20 Pages4690 Words421 Views
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Page 1 of 20
BAM050
Strategic Management
BAM050
Strategic Management
Page 2 of 20
Table of Contents
Overview Of Amazon 3
Company’s Environmental Analysis: Internal And External Issues 4
1. PESTEL Analysis 4
3. Resources And Capabilities 6
4. Performance Summary 7
Evaluation And Recommendations 8
1. Strategy Diamond Framework 8
2. Recommendation 9
References 11
Appendix 14
Table of Contents
Overview Of Amazon 3
Company’s Environmental Analysis: Internal And External Issues 4
1. PESTEL Analysis 4
3. Resources And Capabilities 6
4. Performance Summary 7
Evaluation And Recommendations 8
1. Strategy Diamond Framework 8
2. Recommendation 9
References 11
Appendix 14
Page 3 of 20
Overview Of Amazon
Amazon is a US-based multinational company focused on cloud computing, e-commerce,
digital streaming, and artificial intelligence. This is one of the top five organisations within the US
information technology industry, accompanied by Microsoft, Apple, Facebook, and Google. The firm
has been described as the most well-known brand and the most persuasive cultural and economic
power across the world (Amazon, 2021).
Jeff Bezos founded this organisation in 1994. With total sales and market capitalisation, the company
is the largest web-based retailer in the world. In terms of market capitalisation, Amazon surpassed
Walmart as the most trusted retailer in the United States in 2015. Worldwide, online services and
North America are the three operational segments. Along with that, the company has three business
models, such as (1) Amazon Web Services that provide cloud computing services; (2) Its retail activities
are spreading throughout Amazon Retail in which the organisation acquires inventory stored at
distribution centres; and (3) Amazon Market where third-party vendors lists and sell its goods for a
fee (Amazon, 2021).
The mission statement of Amazon is to endeavour to provide its clients with the best choice, the
highest expediency, and the lowest prices. This claim states what the buyers would want from the
Amazon service that goes beyond to meet their preferences. Furthermore, it aims to give customers
the best deals on three shopping aspects: variety, price, and personal satisfaction. Apart from that,
Amazon tries to be an organisation that considers its client's spending (Amazon 2021). This company
executes it by offering the lowest price to its customers without compromising on the product or
service quality that it showcases. In addition, Amazon has also acquired this right through an online
marketing model that makes sure that the operating costs remain at the lease allowing the
organisation to facilitate such services and competitive prices. Amazon expands the variety of
products or services for all consumers to purchase for accomplishing this feature in the mission
statement. The existence of this product is one of the main factors why this company is gaining more
popularity as a place that is readily available (Kiu and Lee, 2017).
The vision statement of Amazon is to be the leading customer-centric organisation worldwide, in
which buyers can find and explore what they would desire to buy online. In a word, this statement
recalls the expected reputation it seeks to attain as a goal where every consumer worldwide is satisfied
and feels treated in every way. As an e-commerce organisation, Amazon seeks maximum influence in
Overview Of Amazon
Amazon is a US-based multinational company focused on cloud computing, e-commerce,
digital streaming, and artificial intelligence. This is one of the top five organisations within the US
information technology industry, accompanied by Microsoft, Apple, Facebook, and Google. The firm
has been described as the most well-known brand and the most persuasive cultural and economic
power across the world (Amazon, 2021).
Jeff Bezos founded this organisation in 1994. With total sales and market capitalisation, the company
is the largest web-based retailer in the world. In terms of market capitalisation, Amazon surpassed
Walmart as the most trusted retailer in the United States in 2015. Worldwide, online services and
North America are the three operational segments. Along with that, the company has three business
models, such as (1) Amazon Web Services that provide cloud computing services; (2) Its retail activities
are spreading throughout Amazon Retail in which the organisation acquires inventory stored at
distribution centres; and (3) Amazon Market where third-party vendors lists and sell its goods for a
fee (Amazon, 2021).
The mission statement of Amazon is to endeavour to provide its clients with the best choice, the
highest expediency, and the lowest prices. This claim states what the buyers would want from the
Amazon service that goes beyond to meet their preferences. Furthermore, it aims to give customers
the best deals on three shopping aspects: variety, price, and personal satisfaction. Apart from that,
Amazon tries to be an organisation that considers its client's spending (Amazon 2021). This company
executes it by offering the lowest price to its customers without compromising on the product or
service quality that it showcases. In addition, Amazon has also acquired this right through an online
marketing model that makes sure that the operating costs remain at the lease allowing the
organisation to facilitate such services and competitive prices. Amazon expands the variety of
products or services for all consumers to purchase for accomplishing this feature in the mission
statement. The existence of this product is one of the main factors why this company is gaining more
popularity as a place that is readily available (Kiu and Lee, 2017).
The vision statement of Amazon is to be the leading customer-centric organisation worldwide, in
which buyers can find and explore what they would desire to buy online. In a word, this statement
recalls the expected reputation it seeks to attain as a goal where every consumer worldwide is satisfied
and feels treated in every way. As an e-commerce organisation, Amazon seeks maximum influence in
Page 4 of 20
the global market (Elliott, 2018). While the organisation's strategic vision is directly associated with its
progressive enlargement effort, Amazon acknowledges its easy-to-navigate sites and approachable
services as a sign of how it addresses the requirements of this initial feature in its vision statement.
Moreover, Amazon emphasises the requirement to give customers the highest priority, which is one
of the reasons they pursue the desire for the best possible service. This is a value associated with
encouraging workforces to be innovative in what they generate and display to customers (Fainshmidt
et al., 2019).
Company’s Environmental Analysis: Internal And External Issues
1. PESTEL Analysis
Political Factors
Amazon is a global technology organisation based in Washington. The United States is the second-
largest democracy and has a stable political environment. As a global retailer, Amazon is not resistant
for political reasons. In this way, politically stable Western nations have allowed the Amazon to expand
with similar legislation to the United States. However, the organisation faces stiff competition in China,
in which the government supports Chinese e-commerce firms (Lev, 2017).
Economic Factors
Although the economic lockdown for several organisations globally has been devasting, Amazon
appears to be different and has required positive outcomes. The organisation efficiently meets
customers' demands regarding groceries, household essentials, gaming, crafts, entertainment,
streaming, news, and much more (Çitilci and Akbalık, 2020). Thus, customer spending is also rising.
However, it should be noted that higher labour costs and tax changes, especially in the US and the UK,
can directly impact long-term business growth and profitability (Anwar, Khan and Shah, 2018).
Social Factors
The behaviour of consumers around the world is changing rapidly. Currently, they tend to "getting
things done". In this regard, Amazon delivers everything at their doorstep, which is convenient and
easy for customers. Those who have the patience and technical knowledge have the opportunity to
open the world. In addition, several individuals become financially secure by trading on Amazon
(Elliott, 2018).
the global market (Elliott, 2018). While the organisation's strategic vision is directly associated with its
progressive enlargement effort, Amazon acknowledges its easy-to-navigate sites and approachable
services as a sign of how it addresses the requirements of this initial feature in its vision statement.
Moreover, Amazon emphasises the requirement to give customers the highest priority, which is one
of the reasons they pursue the desire for the best possible service. This is a value associated with
encouraging workforces to be innovative in what they generate and display to customers (Fainshmidt
et al., 2019).
Company’s Environmental Analysis: Internal And External Issues
1. PESTEL Analysis
Political Factors
Amazon is a global technology organisation based in Washington. The United States is the second-
largest democracy and has a stable political environment. As a global retailer, Amazon is not resistant
for political reasons. In this way, politically stable Western nations have allowed the Amazon to expand
with similar legislation to the United States. However, the organisation faces stiff competition in China,
in which the government supports Chinese e-commerce firms (Lev, 2017).
Economic Factors
Although the economic lockdown for several organisations globally has been devasting, Amazon
appears to be different and has required positive outcomes. The organisation efficiently meets
customers' demands regarding groceries, household essentials, gaming, crafts, entertainment,
streaming, news, and much more (Çitilci and Akbalık, 2020). Thus, customer spending is also rising.
However, it should be noted that higher labour costs and tax changes, especially in the US and the UK,
can directly impact long-term business growth and profitability (Anwar, Khan and Shah, 2018).
Social Factors
The behaviour of consumers around the world is changing rapidly. Currently, they tend to "getting
things done". In this regard, Amazon delivers everything at their doorstep, which is convenient and
easy for customers. Those who have the patience and technical knowledge have the opportunity to
open the world. In addition, several individuals become financially secure by trading on Amazon
(Elliott, 2018).
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