Strategic Management Analysis of Amazon Malaysia

Running head: STRATEGIC MANAGEMENT ANALYSIS
STRATEGIC MANAGEMENT ANALYSIS
Name of the Student
Name of the University
Author Note

1STRATEGIC MANAGEMENT ANALYSIS
Table of Contents
Task 1.............................................................................................................................2
Introduction................................................................................................................2
About the company....................................................................................................2
Strategic direction of the organization in the last five years......................................2
Task 2.............................................................................................................................3
PESTLE analysis of Amazon Malaysia.....................................................................3
Industry life cycle analysis of Amazon Malaysia......................................................4
SWOT analysis of Amazon Malaysia........................................................................5
Competitor analysis of Amazon Malaysia.................................................................6
Discussion based on competitive advantage of Amazon among the competitors.....7
Industry scenarios that are facing Amazon Malaysia................................................7
Task 3.............................................................................................................................8
Mission and vision statement of Amazon Malaysia..................................................8
Strategic capabilities of Amazon Malaysia................................................................8
Task 4.............................................................................................................................9
Strategies that will be implemented by Amazon to defend the core business...........9
Task 5...........................................................................................................................10
Analyse and evaluate the resource implication of the recommendations................10
Conclusion................................................................................................................11
References....................................................................................................................11

2STRATEGIC MANAGEMENT ANALYSIS
Task 1
Introduction
As discussed by Aguinis, Edwards and Bradley (2017), strategic management can be
defined as the method of continuous planning, proper monitoring and effective analysis and
further assessment of the necessary steps that can be applied by the organization in order to
meet the goals and objectives. The emerging technologies, expectations of customers and
fast-paced innovation levels are able to influence the strategies that can be applied by
organizations for the future processes. The leaders of the company are supported by the
results that are obtained after implementation of strategic management based process (Ahmad
et al. 2015).
About the company
Amazon.com Inc. is multinational organization that operates in the technology based
industry and provides its goods and services to customers in diverse parts of the world. The
company has its base in Seattle, Washington and mainly focusses on the activities based on e-
commerce, digital streaming, artificial intelligence and cloud computing. The firm has been
successful in appropriate growth of its operations in Malaysia with the help of the services
and products offered to the customers (Amazon.com 2019).
Strategic direction of the organization in the last five years
Resources of Amazon –
Human assets – The CEO of Amazon Jeff Bezos and the employees are the most
significant human resources or assets who are able to support the operations of the company
and attract the customers as well (Ahmad et al. 2015).

3STRATEGIC MANAGEMENT ANALYSIS
Intangible assets - According to Albrecht et al. (2015), the strategy that has been
implemented by Amazon Malaysia is based on the ways by which technological capabilities
related to business success can be used in an effective manner. The organization has followed
the cost leadership strategy in order to offer the extreme value to consumers at lowest prices.
The corporate strategy which is applied by the organization can be described as the
concentric diversification. Technology is thereby considered to be the major intangible
resource of Amazon.
Capabilities of Amazon - The process of leveraging technology in order to gain
business success is able to support the strategic direction that has been followed by Amazon
Malaysia in the last few years (Ahmed Haji 2015). The different sources of competitive
advantage are able to drive the strategies applied by the organization and the direction that is
followed as well. The convenience that Amazon aims at providing the customers is also
considered to be an important part of the strategic direction of the organization (Alom et al.
2016).
Task 2
PESTLE analysis of Amazon Malaysia
The performance of Amazon Malaysia can be analysed with the help of detailed
discussion based on the macro environment based aspects. The PESTEL framework can be
applied in order to analyse the factors that have an impact on the operations of Amazon in
Malaysia.
Political factors – The levels of political stability in a middle income country like
Malaysia are quite moderate. Malaysian government supports the operations of e-commerce
based organizations by increasing the efforts related to cyber security. The opportunities are