Strategic Management of Amazon

Added on - 21 Apr 2020

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Running head: STRATEGIC MANAGEMENTStrategic managementName of the Student:Name of the University:Authors Note:
1STRATEGIC MANAGEMENTTable of ContentsIntroduction:....................................................................................................................................2Issues:..............................................................................................................................................2SWOT ANALYSIS:........................................................................................................................3VRIO Analysis:...............................................................................................................................6Financial Analysis:..........................................................................................................................8Recommendation and Conclusion:................................................................................................10Reference.......................................................................................................................................11
2STRATEGIC MANAGEMENTIntroduction:The main of this report is to analyze the situation for understanding the key issues. In thisreport strength and weakness is analyzed by performing SWOT and VIRO analysis. In this, thecase the Amazon is selected for performing the analysis. The selected company is the world’slargest online retailer. The success of this company has encouraged others retailers that includesphysical, brick and mortar retailers to get in to the online presence (Peppard& Ward, 2016). Theonline retailer Amazon is compared to the Wal-Mart for its large presence in different countriesand the aggressive strategy of pricing followed by them. However, the recent development andsteep competition requires amazon has to rethink its business model of operating at close to zeromargins. In addition to this, the company has not made sufficient profit as a result it is animpediment to the growth of the companyIssues:The most primary issue relating to the business strategy of Amazon are stated below:Amazon offers free shipping due to which the company is losing its profit margin inproducts of small amounts.The suggestion and recommendation of the market researchers and analysts have play asignificant role in the decrease in profits.The product category range of amazon is very small.
3STRATEGIC MANAGEMENTSWOT ANALYSIS:In the part below the SWOT Analysis regarding the business strategy of amazon has beendiscussed precisely.The SWOT analysis refer to the STRENGTHS, WEAKNESSES, OPPORTUNITIES andTHREATS that a business is exposed to. Every aspects of SWOT analysis is discussed briefly.Strengths:The amazon is the largest online retailer it focuses mainly on the three prolongedstrategies that are cost-leadership, differentiation and focus. By following the strategiesthe company thrives its gains from the course of its action and help its shareholdersoriginates the values of the items from the company (Hill et al., 2014).StrengthsWeaknessesOpportunitiesThreats
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