Strategic Management for Amazon: Analysing Two Major Strategic Issues

Strategic Management.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Presenting online retail organization and characteristics of strategic management....................3
Critically analysing the two strategic issues faced by the firm....................................................4
Analysing the impact of strategic issues on the firm...................................................................8
Presenting the comparison between the two organizations. .......................................................9
Recommendations for Amazon..................................................................................................10
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic management is related to the planning, analysing and implementing business
strategy so that business can remain competitive in the current era of tough competition. The
present report will analyse the features of strategic decisions that are taken by the big online
retailer firm Amazon while working in complex business environment. Moreover, the report will
also explain the role of strategic management in detail. Further, importance of organizational
stakeholders in making effective business strategy will also be explained in detail. Further,
structure and processes that shape the organizational culture will also be cover under this report.
Moreover, various concepts and principles of strategic management will also be discussed in
detail.
MAIN BODY.
Presenting online retail organization and characteristics of strategic management.
Amazon is big online retailer company introduced by Jeff Bezos that focus on selling
variety of goods that includes consumer electronics, beauty products, groceries, health and
personal care items, musical instruments etc. Further, all the goods are sell through e-commerce
platform all over the world. The company has been formed with the initial business strategy to
sell books through online medium but it gradually expanded with selling different products in the
market (Meyer , Neck and Meeks , 2017). Hence, a simple strategy by the owner worked very
well to become successful businessman in the whole world. Therefore, it can be defined as
strategic management is related with formulating and implementing various strategies that are
essential to remain ahead in the competition and develop better policies in the future. Moreover,
it defines the long term performance of the enterprise. There are certain characteristics that are
related the strategic management that are as follows:
 It is activity that is fully related with the involvement of the top management that is
responsible for all implementing all the best policies. Moreover, top management is only
involved in taking certain opinions from the lower levels when there is any urgency and
is not major.
 For implementing the successful strategic decisions within the firm it is required that all
the resources are made fully available to the company so that there is no delay in its
implementation. Also, all the available sources of the funds needs to be closely identified
so that best option could be selected form the rest available.

 Strategic decisions by the firm affects the long term prosperity of the firm as one major
decision taken might help the firm to stay ahead of the other competitors through
attracting lot of customers and generate large amount of revenues for the firm.
 Strategic management is future oriented and hence the results of the decisions taken are
not shown immediately but are shown at some future point. Also, quick results are not
shown because it ongoing process that is carry out for long period.
 All the strategy develop are dynamic in nature and as a result top management is always
involved in searching new options so that new sources could be found out that would be
advantages for the future growth (Moutinho and Vargas-Sanchez , 2018)
 Strategies are also the result of collective decisions and not an individual decision that is
taken independently. Also, the decisions are taken through successive meetings and
conferences where the opinions are taken form all the department heads so that effective
decision can be taken. Moreover, strategic decision are made keeping in mind that is no
major impact on any ongoing operations of any organizational department so that
company does not have to face any problems in the future relating to any loses or expense
because of this strategy.
Critically analysing the two strategic issues faced by the firm.
Strategic issues are types of issues that remain unresolved or are for important concern
for the firm as they could have major impact in operations of the business if they occurred in the
future. Moreover, these issues could be in form of series of events, strength, weakness or
opportunities depending upon its nature or type. For big organizations like Amazon that is
operating on large level around the world there are certain strategic issues that are been faced but
two major issues that are currently faced are :
Overcoming High competition on E-commerce platform:
One of the major challenge that is currently faced by the firm is that number of
competitors are increasing, and they are regularly coming up with new products that are unique
and different from those that is already present in the market. Also, competitors like flip-kart,
Walmart, Ali baba and many more are also very successful in expanding the business to large
level through better business strategies. Thus, there is extreme pressure on the company to
continuously come up with new ideas that would allow selling goods in the market in more
efficient manner than the others. Furthermore, it is seen that amazon is focused in providing