Strategic Management Analysis of Amazon !

Running head: STRATEGIC MANAGEMENT ANALYSIS
STRATEGIC MANAGEMENT ANALYSIS
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STRATEGIC MANAGEMENT ANALYSIS
1. Introduction and about the company
Amazon.com is a multinational organization which operates in the electronic
commerce based industry and has its origin in the USA. The headquarter of Amazon is
located in Seattle, Washington. Amazon was established by Jeff Bezos in the year 1994. The
technology giant has been able to develop its position in the industry as the largest internet
based retailer. The organization has acquired the second-largest position in the world as
compared to Alibaba Group. The leadership based qualities of Bezos and strategies which
have been developed by the management are mainly important for the position which has
been established by Amazon (Amazon.com.)
The analysis will be based on the strategies which have been formed and executed by
Amazon and the current strengths and weaknesses of the company based on its operations in
the technology industry.
2. Mission and vision of Amazon
The success which has been achieved by Amazon in technology industry is based on
the mission and vision based statements. The direction which has been provided to Amazon
is also related to the ways by which the company operate in the industry. The mission
statement of Amazon is based on the ways by which the company aims at offering the
customers with the best products at lowest levels of prices. The convenience levels which are
offered to customers are also considered to be a major factor based on mission statement of
Amazon (Hill, Jones and Schilling 2014). The vision statement of Amazon is based on the
methods which are implemented by the organization in order to become a customer-centric
organization which can help the customers to find any product which they wish to buy. The
online operations of the organization are totally based on the ways by which Amazon aims at
fulfilling the needs and demands of customers in an effective manner (Amazon.com.).

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STRATEGIC MANAGEMENT ANALYSIS
3. Nature of business of Amazon
Amazon has proved itself to be a leader in different online business based activities
which include, logistics, payments, ecommerce, media and data storage. The main principle
which is followed by Amazon in conducting its business activities can be termed as
“flywheel”. This can be described as a cycle which is based on the ways by which the
company aims at cutting the prices in order to attract the customers. This in turn is helpful for
the company to increase the levels of sales and profitability in the market. The flywheel
philosophy is thereby based on the aspirations and aims of Amazon to fulfil its dual
ambitions which include, customer obsession and ways by which the company can conquer
commercial world as well (Amazon.com.).
4. Mid-term and long term strategy of Amazon
The mid-term based strategy which can be developed by Amazon is based on the
ways by which the company can maintain its position in the industry with the help of its huge
customer base. The customer-centric nature of the organization can be maintained effectively
with the help of proper strategies based on providing them the value which is required
(Jenkins).
The long-term based strategy which can be implemented by Amazon is based on the
development of physical stores in different countries. The organization can compete with the
other physical stores which already operate in the industry. The leader can further aim at
taking the organization at a new level and further maintain the growth based activities which
have taken place (Wheelen et al.).
5. Current market based strengths and weaknesses