Business Strategy: Analysis of Amazon's Strategies and Competitive Forces

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Application of appropriate strategies to analyse impact & influence of macro environment
on business strategies and organisation.......................................................................................3
P2 Analysis of internal capabilities and environment using various frameworks within
organisational context.................................................................................................................7
P3 Evaluating various competitive forces in market sector through use of porters five forces
model...........................................................................................................................................9
P4 Applying range of theories, model & concepts for interpreting or devising strategic
planning within organisation.....................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategies pay significant role in designing actual structure as well as
developing a healthy culture within business environment. Below report discusses about case
study of Amazon, a successful online platform that started as book store in 1994. Organisations
accomplish business objectives through creation of appropriate business strategies containing
clear guidelines or policies for successful operations at workplace. This report comprise of
various suitable frameworks or models to know internal & external factors affecting business.
Respective organisation deals with opening up of online websites, various physical stores as well
as Amazon prime subscription services entertaining large numbers across nation. Also, strategic
plan is created with use of porters five forces model analysis. Use of such theories & models is
mentioned in below report to determine various forces that leads to competition in market.
MAIN BODY
P1 Application of appropriate strategies to analyse impact & influence of macro environment on
business strategies and organisation
Company: Amazon
Mission: Major mission of Amazon as per case study analysis is “ focusing of various factors
such as price, selection & convenience to consumers through opening up physical stores & create
one of largest platform having online presence than others over internet”.
Vision: Main aim of Amazon is identified as “becoming one of most consumer centric
organisation on earth where every internet user can find out anything or everything they wish to
get that can be bought online with reasonable rates & prices.
Objective: Prime objective of Amazon towards establishing complete vision & mission of
organisation is following important core values introduced by Jeff Bezos. These consist of
obsession of consumers, resisting proxies (Munandar, 2017). Make high velocity decisions and
embrace external market trends.
Background of company:
Amazon is an American multinational technological company that provides various
services such as online shopping, e-commerce services, artificial intelligence, digital streaming
and cloud computing etc. This business that is based in Seattle, Washington, US spread across
world globally through its online presence of successful website.

Business Strategy
Business strategy in context with Amazon, is simply decentralisation of value creation
through use for appropriate models & theoretical analysis. Also managers at Amazon make sure
there is proper distribution of its goods & services through use of various inventory systems for
quick delivery services.. Following strategy therefore consist of creating user generated content
over famous social media platforms such as twitter, Instagram, Quora and Facebook etc. to reach
out to maximum consumers of all ages. Another way of value creation is forming peer to peer
networks with renowned manufactures, retailers, service providers & technology driven firms.
Role of Strategy:
Operations & functions within a business organisation are majorly held by using
appropriate strategies created by management officials or researchers of firm. Below are some of
significant role of a business strategy:
 Assistance in taking effective Decisions: Strategies itself are created based on various
strengths & weaknesses of company to make sure appropriate decisions are taken by
managers to grab any future opportunities for growth.
 Increases adaptability: Dynamic changes in business environment has created need for
having an online presence important for all companies. Since, consumers today are more
aware & try to search everything over digital media. Therefore, Amazon has adapted this
culture of being available to all consumers through internet innovation.
 Provides a Direction: A strategy is made based on previous or existing plans for future
improvements. Therefore, Amazon use such strategies to take first mover advantage over
others in competition as it provides a direction to both employer & employee on how to
function.
Strategic Planning Techniques:
Strategic planning is a continuous process that involves both choosing of best alternative
ideas to implement from various course of actions identified. In relation with Amazon, some of
appropriate techniques used in strategic planning process are mentioned below:
Budget Planning: Manager analyse certain financial factors that are costs, expenses,
revenues & overall profits to formulate strategies as per set budgets.