Strategic Planning for Amazon: Analysis, Recommendations, and Change Management

STRATEGIC MANAGEMENT & CHANGE SMCH6061
STUDENT NAME/ID NUMBER
AMAZON
DEADLINE
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Executive Summary
The present report deals with the strategic planning of Amazon. The first section carries out
micro and macro analysis to assess the current status of the organisation. Presently, Amazon
is one of the market leaders in the online business. However, the organisation faces
competitions and the pressure of the customers. The second part evaluates the environment of
Amazon through the SWOT analysis. The third section offers a strategic recommendation of
merger and acquisition and cost leadership. Finally, the fourth section offers strategies and
models of change management.
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Table of Contents
Introduction................................................................................................................................4
Section 1- Environment analysis................................................................................................5
Section 2 – Evaluation Report....................................................................................................9
Section 3 – Strategic Plan........................................................................................................11
Section 4- Change Management..............................................................................................13
Conclusion................................................................................................................................16
References................................................................................................................................17
Appendix 1...............................................................................................................................19
Appendix 2...............................................................................................................................20
Appendix 3...............................................................................................................................20
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List of Figures
Figure 1: Market Share of Amazon and its Competitors...........................................................8
Figure 4: Porter’s Generic Strategy..........................................................................................13
Figure 5: Lewin’s change management model........................................................................15
Figure 6: ADKAR model.........................................................................................................16
Figure 2: the Growth rate of Amazon comparing to r-commerce sales growth in U.S...........20
Figure 3: Amazon synergies.....................................................................................................21
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Introduction
The purpose of the report is to develop a sound strategic plan for Amazon. Amazon.com, Inc
known as Amazon is an international technology organisation operates in cloud computing,
consumer electronics and electronic commerce industry with its 613300 employees as of
2018. It is the biggest cloud computing platform and e-commerce marketplace by means of
market capitalisation and revenue in the world. Amazon has so many rivals, and many
competitors are mortar and brick retailers including Walmart, Best Buy, Family Dollar and so
forth. With the increasing intensity of competition, it is becoming even more difficult for
companies satisfying growing expectations of customers. Further, in spite of the rapid
development of e-commerce, it is smaller in number as compared to physical stores
(Amazon, 2018b). Therefore, the study involves carrying out a thorough analysis of external
and as well as internal environmental factors.
Section 1- Environment analysis
Robson (2015) commented that strategic planning is the part of the organisational process
that helps to define the strategy and the direction and undertake decision for the allocation of
the resources for pursuing the strategy. Strategic planning is important because it helps in
guiding organisational activities and creating financial benefits and reduce the risks of
business failure. However, the main limitation of strategic planning is that it lot of knowledge
of knowledge, financial assistance and interdependence of units. However, for a leading
online business player like Amazon, the limitations can be overcome, and effective strategic
planning can help n further business development through innovation and utilisation of
resources (Hill, Jones and Schilling, 2014).
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The macro environment refers to the external environment which exists in the economy as a
whole. Microenvironment refers to the small forces within the company that influences its
ability to serve customers and can be easily controlled (Grant, 2016). The environmental
analysis would help Amazon to assess its current strength, weakness, competition,
opportunities and the ability to survive and grow. The PESTLE analysis is significant for
evaluating the external environment, and Porter's Five Forces would help to evaluate the
internal organisation.
Macro Environment
Political The political affairs and the government activity influence the business
of Amazon. The UK has political stability that has helped Amazon to
grow and develop its business. However, the formation of Brexit has
changed the taxation laws and business policies. The EU has targeted
the technological firm, for instance, Amazon has been targeted for its
deals of E-books with the EU publishers (Ritala, Golnam and Wegmann,
2014) However, the government has provided the improved condition
for the online business and cybersecurity.
Economic The UK is the eight freest economies in the world with a score of 78.0.
The business freedom is 91.1 which is a positive opportunity for the
growth of Amazon. The tax burden is 65.2 which can lower the
profitability. However, increased consumerism is a positive factor for
Amazon in the developing and the developed countries. The trade
freedom is 86.9 which aid Amazon to grow and develop its business
(Heritage, 2018).
Social The ageing population in the UK is increasing, and it is expected to
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