Amazon's Smartphone Strategy

This assignment examines Amazon's planned entry into the smartphone market. It analyzes how Amazon leverages its understanding of customer shopping patterns to tailor features in their new phone for online shopping. The analysis also considers the limitations of this strategy due to the diverse uses of smartphones beyond online retail.

Running head: STRATEGIC MANAGEMENT
Strategic management
Name of the student
Name of the university
Author note

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Part: 1
PESTLE analysis
Political New Zealand is having stable government with having favorable political
regime in the country. The political regime change in every three years.
Thus, it may pose challenge to the organization due to the fact that, with the
change in the political scenario, business policies of the government may
change (Kelsey, 2015). Thus, indigenous produce will have to adhere with
the change in the political scenario.
Economic New Zealand is one of the prominent developed countries with having high
purchasing power of the customers. Moreover, rate of unemployment is also
very low, which will have positive impact on the business (Kelsey, 2015).
Thus, indigenous produce will have the favorable economic environment in
their business operation.
Social The social taste and preference pattern of New Zealand is inclining towards
the locally grown food items (Denver & Jensen, 2014). Thus, they will have
the advantages of having local made goods in their portfolio. Moreover, the
customers are educated and are having high rate of literacy. Thus, using of
latest technologies and marketing strategies will also be beneficial for them.
Technology Being one of the prominent developed countries, New Zealand is having
good infrastructure of technologies. Thus, in this case, Indigenous produce
will have the access to the latest and updated technologies. This will help
them in providing the effective customer service to their customers along

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with enhancing their level of satisfaction and convenience.
Legal Currently, New Zealand is having stable legal systems in their country. In
addition, the government is initiating various incentives for the local
manufacturing facilities. Thus, they will have the favorable business
environment in term of the legal environment in New Zealand. Moreover,
due to the reason that they are planning to export in the later stage, thus,
they will have the access to the export incentives of the government.
Environmental Awareness regarding the environment and climate is increasing among the
customers in New Zealand. Accordingly, the government is initiating
various legislations in relation to the protection of the environment
(Lawrence et al., 2015). Thus, they have to maintain and adhere to these
legislations. Moreover, due to the fact that they will cater to the agricultural
products, thus, they have to regulate the use of artificial chemicals, which
will have impact on the environment.
Threats of globalization
 One of the key threats of globalization for indigenous produce is the increase in the
competition. There are various global organizations, which are operating in the same
sector of them (Almeida, 2012). Thus, entry of these organizations in New Zealand will
make difficult for indigenous produce to operate. Moreover, due to the fact that they are a
start up, thus it will be difficult for them to compete with the global brands.
 Another threat of globalization for them will be the inflow of more sophisticated
technologies, marketing activities and produce portfolio. The entry of global

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organizations will also make the way of having diversified product portfolio in the
market (Dancygier & Walter, 2015). This will make difficult for indigenous produce to
compete in the market. the technologies that will be used by the global organizations will
cannot be matched by them.
Vision statement
The vision statement of them should be to be the market leader in the agricultural food
sector with having the most market penetration along with having global presence in every major
city around the world. This vision statement is serving the basic business principles of them. This
is due to the fact that, this vision statement is stating the objective of having the market leader in
their business sector (Kirkpatrick, 2016). Thus, accordingly they will operate in the market.
Moreover, this vision statement is also stating the objective of being the global leader, which will
also motivate them to enter in the global market.
Mission statement
The mission statement of them will be to provide the customers the best quality products
with having no artificial pesticides and fertilizers along with providing the customers enhanced
convenience. This mission statement will help them to provide the customers organic agricultural
products to the customers (Dermol, 2012). Moreover, customer convenience is also being
mentioned in this mission statement. This will motivate them to concentrate more on the
enhancing the convenience of the customers.

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SWOT analysis
Strengths
 Product portfolio having locally
manufactured items.
 Cost efficiency in marketing the local
items.
 Preference of the customers towards the
locally manufactured goods (Autio et
al., 2013).
Weaknesses
 Being a startup they are having less
experience in the market.
 Product portfolio is having only the
agricultural food products, which will
limit their market expansion
opportunity.
 Inferior quality of the locally
manufactured goods compared to the
global items.
Opportunities
 Entry in the global market is having
huge opportunities for them with
increase in market share.
 Preferences for the organic food items
are rapidly increasing.
 Opportunity in entering in other sector
of organic food items in future.
Threats
 Entry of the global competitors in the
market of New Zealand (Hill, Cronk &
Wickramasekera, 2013).
 Change in the preference pattern of the
customers from locally manufactured
foods.
 Increase in the cost of production in the
local agriculture crops.
McKinsey’s 7s analysis

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Strategy
The strategy of indigenous produce is to tap the domestic market first and then going for
the global market (Singh, 2013). Accordingly, they have chosen the locally manufactured goods
to offer to the customers. Thus, in order to cut off the competition in the market. Their strategy is
to offer local and organic products among the artificial products being offered by the
competitors.
Structure
Due to the reason that, indigenous produce is a startup organization, thus, currently, they
do not have any hierarchy in the organization, which will help them to work in more coordinated
manner in the initial stage along with effectively determining the ground requirement (Singh,
2013).
Systems
As discussed earlier, they currently do not have any hierarchical structure and thus, the
organization is not being divided in various departments. However, the founder members have
being assigned the departments based on their background.
Shared values
The value that this organization maintains is enhancing the ethics in providing the
effective and true products to the customers. The internal organization is being managed in such
a way that, all the stakeholders will strive to provide the positive customer experience.

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Style
Due to the reason that, this organization is not having proper organizational structure,
thus they are following shared and participative style of leadership (Gonos & Gallo, 2013). It
helps them to determine the requirement of the market and the employees more effectively.
Staff
Currently, they do not have any gap in the organization due to their limited approach in
the market. However in the later stage, they will have the need of having more diversified
employees with the increase in their business presence. They will have the need of having
expertise employees in developing the agricultural products, which will help them to gain
competitiveness in the market.
Skills
The skills being possessed by the employees ranges from marketing skills to having the
skill of communicating and managing the partners. Financial skills are required. However,
currently, they are in the need of marketing skills, which are not being managed by the current
employees. Thus, as they are expanding their market presence, the need for more marketing
people will be faced by them.
Five force analysis of Vodafone
Rivalry with
competitors
Vodafone is having high number of competitors in the markets. Moreover,
some of the competitors are providing the same service in much lesser price.
This is further depreciating the business potential of Vodafone (E. Dobbs,

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2014).
Bargaining power
of buyers
With having several competitors in the market, customers are having upper
hand in selecting their network provider. Thus, this force is high for
Vodafone (E. Dobbs, 2014).
Bargaining power
of suppliers
Vodafone is having higher profit margin than its competitors and thus, it
helps them managing the risk of the increase in the cost of the suppliers (E.
Dobbs, 2014). Moreover, there are various suppliers being available to
Vodafone.
Threat of entrant Entering in the telecom sector involved huge cost and thus, the threat of new
entrants is lower for them.
Treat of substitute Vodafone is having huge number of substitutes in the market with having
good number of competitors in the market. Thus, this force is lower for
them.
Thus, from the above analysis of the five force of Vodafone, it can be concluded that,
telecom industry in the New Zealand is having huge number of organizations and competition.
Thus, industry is not attractive enough for the new entrant as this will only reduce the profit
margin.

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Scenario: 3
Question: 1
Growth strategy is being implemented by Amazon. This is due to the reason that, the core
business of Amazon is online shopping and thus entering in the Smartphone market is a
dimension of growth strategy (HAllback & Gabrielsson, 2013). This will help them to cater to
more number of customers.
Question: 2
Prior to the release of this device, Amazon have identified the shopping pattern so the
customer in their shopping portal. This helped them to identify the use of the Smartphone by
them for online shopping. Accordingly, they have added features in their new phone.
Question: 3
This strategy will not be successful due to the reason that, in the current scenario,
Smartphone is associated to the customers for various alternate uses. Online shopping is one of
the dimensions. Thus, concentrating only on one dimension will not help Amazon to market their
products.

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Reference
Almeida, P. (2012). Subnational opposition to globalization. Social Forces, 90(4), 1051-1072.
Autio, M., Collins, R., Wahlen, S., & Anttila, M. (2013). Consuming nostalgia? The appreciation
of authenticity in local food production. International Journal of Consumer
Studies, 37(5), 564-568.
Dancygier, R. M., & Walter, S. (2015). Globalization, labor market risks, and class cleavages.
Denver, S., & Jensen, J. D. (2014). Consumer preferences for organically and locally produced
apples. Food Quality and Preference, 31, 129-134.
Dermol, V. (2012). Relationship between mission statement and company performance. Annals
of the Alexandru Ioan Cuza University-Economics, 59(1), 321-336.
E. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), 32-45.
Gonos, J., & Gallo, P. (2013). Model for leadership style evaluation. Management: journal of
contemporary management issues, 18(2), 157-168.
Hallbäck, J., & Gabrielsson, P. (2013). Entrepreneurial marketing strategies during the growth of
international new ventures originating in small and open economies. International
Business Review, 22(6), 1008-1020.
Hill, C. W., Cronk, T., & Wickramasekera, R. (2013). Global business today. McGraw-Hill
Education (Australia).