Strategic Management: Performance Evaluation and Strategic Plan for Amazon

This report evaluates the performance of Amazon, highlighting competitive strengths, market position, and areas for improvement. It proposes a strategic plan using appropriate tools such as Porter's generic strategies and Porter's five forces model. The report also reflects on the module's support in career development.

STRATEGIC
MANAGEMENT 5

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Part A (1): Critically evaluate the performance of your selected company highlighting
competitive strengths, market position and areas where improvement across the value chain
may be required...........................................................................................................................3
Part A (2): Using your evaluation propose a strategic plan for the same company using
appropriate tools to explain and justify your strategic choices....................................................4
Part B: Reflect upon the module. . Consider the online learning activities <and in class
workshops>. To what extent will the module support you in your career development and
how?.............................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management considered as a strategic resources that helps in Accomplishing
goal of company. It is a procedure of company but also define external factors like politics
competition that enforces direct effect on company. In this report, the organisation is named as
Amazon. It is the international company that operates their business in different region such as
America, Asia and Europe and also defines market position, competitive strength assist in
increasing level of performance of company in upcoming time period. They conduct their
organisation in many sectors and provide discussion in respect of performance of company and
market position that is required for competitive edge in the market (Rigas and Nawar, 2016).
MAIN BODY
Part A (1): Critically evaluate the performance of your selected company highlighting
competitive strengths, market position and areas where improvement across the
value chain may be required
It is the international company that operates their business in different region such as
America, Asia and Europe and also defines market position, competitive strength assist in
increasing level of performance of company in upcoming time period.
Competitive strengths of Amazon
There are various competitive firms which provide the final product and services around
the world. The growth of company is considered as extra ordinary and it is the second biggest
retailer around world. It is considered as a organisation that help in achieving competitive
advantage of mobile online application company at UK. Different techniques used by Amazon
that helps in reducing costs as well as time of shipping. They also offer products and services to
its customers at less time and also bring advantages to its customer.
The market for company named as a Amazon is considered as the online shopping
network that is adopted by other retailing firm in marketing their goods at marketplace for their
various products which is offered to the company. There are various goods which is offered in
different sites of Amazon which increases brand image of company in front of customer at
marketplace. There are around 12 million goods available of website of Amazon for purpose of
marketing. Amazon market around 1.1 million home development goods across the globe. There

is different membership like membership of Amazon prime which has around 95 million
individual person across world. Above 50% of marketing in Amazon is performed by
organisation in various platforms that helps in attracting large number of customer at
marketplace. There are approx 80% seller who marketing goods on various platforms rather than
Amazon.
There are various methods which is used by Amazon for enhancing value chain for its
user. It is important for customer to regularly increase or satisfy need or demands of its user. It
has been analysed that online marketing provides services at 24 hours a day and provide
overnight facility that helps in success or growth of organisation in future period of time.
Automation is considered as a significant part of supply chain administration within company. It
is important for Amazon to put automating on their activities or functions that helps in satisfying
need or wants of customer at marketplace. They also need largest warehouses in order to produce
their goods and provide it in successful manner. It is important for Amazon to ensure that they
appropriately handle logistics system as it is considered as important functions of business
organisation. Follow all level Amazon can take innovative methods in organisation that enhances
value in front of customer at marketplace (Wiersema and Bird, 2017)
Part A (2): Using your evaluation propose a strategic plan for the same company using
appropriate tools to explain and justify your strategic choices
In relation to Amazon, Global organisation where it is important to the firm to identify
the strategic plan in an effective manner to minimise the impact of competitors of the firm's
functioning within the market. For improving the functioning organisation can use porter's five
forces model and Porter generic strategies in relation to analysing the market as well as
competitors and formulation of effective strategies. Both of these are discussed below:
Porter generic strategies
This Framework consists different and strategies that can be adopted by the organisation
in an improved manner. There are different kind of strategies and the porter's generic strategy
which include cost leadership, differentiation and focus. These are the different strategies which

can be adopted by the Amazon in relation to achievement of competitive advantage in the
market. All the strategies are discussed below:
Cost leadership: cost leadership can be defined as a strategy which involves using cost
effective techniques within the organisation which can improve functioning of organisation and
achieving the goals and objectives in a timely manner. Under this organisation use cost effective
techniques which will helpful for minimising the cost of products and services. This technique
can be used by organisation to achieve competitive advantage over its component by minimising
the cost of products and services. This strategy is suitable for Amazon where organisation can
use different kind of techniques like saving resources and improving the functioning by
providing training and development to the Employees. This is helpful to the organisation in
achieving cost effectiveness within the market (Lusch, Vargo and Gustafsson, 2016).
Product differentiation: these strategies which are related to using a different situation
within the product and services offered by the organisation to the customer within the target
market. Under this strategy, Amazon can use different kind of products and services which are
different from its competitors and will help the organisation in eliminating the competition by
offering different products within the market. This will also help the organisation in can improve
its prices by offering different products of the customer and increase profitability by it.
Focus strategy: this strategy is combination of both cost effective techniques and product
differentiation where organisation can use to focus on a particular strategy to achieve the goals
and objectives. Under this system, organisation can use to focus on a particular approach which
helped the firm in achieving separate market base and eliminating competition.
Porter's five force model
It is the model which can be used by the organisation to identify different forces which
impact the organisation to achieve the goals and objective. Under this system, organisation can
use different kind of factors to identify different factors which impact the competition within the
market and use strategies to minimise their impact. All these factors are discussed below:
Competitive rivalry: under this factor of porter's five Force model organisation has to
identify its main competitive rivalry with the market which can impact on the decision making
ability of the organisation while performing the strategic activities. In relation to Amazon, main

competitive rivalry of the organisation is Wal-Mart, this is because it is performing its function at
global level where Wal-Mart is offering effective services to the customers in relation to Amazon
as well as cover larger area then Amazon. This is ineffective point in relation to the competition
faces by Amazon with Wal-Mart and impact on the Amazon performance within the market. In
relation to this, Amazon can use strategies which are linked bring effectiveness in system and
maintaining effective channel.
Threats of new entrant: under this factor of porter's five Force model, organisation has
to identify different factors which can impact on the performance of the firm related to the entry
of new organisation within the industry. This factor act as a competitive advantage to the
Amazon because organisation is dealing in industry of online E- commerce websites where there
is requirement of Huge investment as well as proper channel of distribution to achieve the goals
and objectives (Chernev, 2018).
Bargaining power of customer: this factor is related to power of customer within the
market where the organisation is selling its products and services. Under this factor, there are a
large number of customers to the organisation then customers have low bargaining power
because of huge support. But on the other side, if there is low level of customers then
organisation has to face the problem of bargaining from its customer because of their increased
capacity. In relation to Amazon, it is selling its goods and services at global level where it can
easily achieve the competitive advantage related to large number of customers with low level of
bargaining power.
Power of suppliers: Amazon is working within The E-Commerce retailing platform
where there are a large number of suppliers to the products and services offered by the
organisation to its customers. Because of large number of supplier organisation gain the
advantage of lower its cost in the products and services supplied by the suppliers. This is act as a
competitive advantage to the firm because suppliers have low power in it.
Threats of substitute: It is also a factor which is included in porter's five Force model.
Under this factor organisation has to identify the threat of substitute within the market where is
trading. Under this system, Amazon is trading within The E-Commerce platform. There is a
large number of competitors in this market which impact on the performance of Amazon and
make it essential for the form to use strategies to sell the products and services. To minimise the

impact of substitutes organisation use pricing strategies where it try to minimise the price of the
products so that it can achieve cost advantage to sell the products at larger quantity and minimum
prices.
It can be evaluated that Amazon can use porter's generic Strategies and porter's five Force
model to identify a strategic plan which will helpful in decision making as well as improving the
profitability and productivity of firm. This is also helpful in identifying a proper strategy which
can be adopted to improve the functioning and achieve goals and objectives in and timely
manner. On the basis of above mentioned strategy, it has been analysed that it is important to the
firm to identify the strategic plan in an effective manner to minimise the impact of competitors of
the firm's functioning within the market. For improving the functioning organisation can use
porter's five forces model and Porter generic strategies in relation to analysing the market as well
as competitors and formulation of effective strategies (Tiwari, Wee and Daryanto, 2018)
Part B: Reflect upon the module. . Consider the online learning activities <and in class
workshops>. To what extent will the module support you in your career
development and how?
After completing project in timely manner, it has been assessed that there are different
aspect related to projects that is useful in improving various types of skills as well as knowledge.
These abilities are linked with improvement of analytical skill, critical skill and also
communication skill as well as many more. After executing this assignment, I also assessed that
adopting efficient strategies or tactics are significant for organisation for achieving mission as
well as vision and also handling different activities and functions of organisation in an
appropriate manner. There are various types of tools as well as techniques that are adopted by
company to accomplish goal. The cost leadership is considered as a superior strategy which is
used by organisation during particular phase of time period. It as been analysed that adopting
different techniques that assists company in handling successful activities and operations by
attracting ample of user at marketplace. There are different kinds of skill which is necessary to
improve career progression and development in upcoming period of time(Oehmichen, Schrapp
and Wolff, 2017).

CONCLUSION
On the basis of given report, it has been assessed that Strategic management
considered as a strategic resources that helps in Accomplishing goal of company. It is a
procedure of company but also define external factors like politics competition that enforces
direct effect on company. In this report, the organisation is named as Amazon. It is the
international company that operates their business in different region such as America, Asia and
Europe and also defines market position, competitive strength assist in increasing level of
performance of company in upcoming time period. They conduct their organisation in many
sectors and provide discussion in respect of performance of company and market position that is
required for competitive edge in the market.
.

REFERENCES
Books and Journals
Rigas, D. and Nawar, Y.S., 2016, July. Leadership and innovation growth: a strategic planning
and organizational culture perspective. In International Conference on HCI in
Business, Government, and Organizations (pp. 565-575). Springer, Cham.
Wiersema, M.F. and Bird, A., 2017. Organizational demography in Japanese firms: Group
heterogeneity, individual dissimilarity, and top management team turnover. Academy
of management Journal.
Lusch, R.F., Vargo, S.L. and Gustafsson, A., 2016. Fostering a trans-disciplinary perspectives of
service ecosystems. Journal of Business Research, 69(8), pp.2957-2963.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Tiwari, S., Wee, H.M. and Daryanto, Y., 2018. Big data analytics in supply chain management
between 2010 and 2016: Insights to industries. Computers & Industrial
Engineering, 115, pp.319-330.
Oehmichen, J., Schrapp, S. and Wolff, M., 2017. Who needs experts most? B oard industry
expertise and strategic change—a contingency perspective. Strategic Management
Journal, 38(3), pp.645-656.
Dembek, K., Singh, P. and Bhakoo, V., 2016. Literature review of shared value: a theoretical
concept or a management buzzword?. Journal of Business Ethics, 137(2), pp.231-267.

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