MGMT1101: Comprehensive Analysis of Amazon's Operations and Strategies

This report provides a comprehensive analysis of Amazon, one of the world's largest e-commerce companies. It begins with a summary of Amazon's background, including its focus on e-commerce, cloud computing, and digital streaming. The report then delves into Amazon's customer base, highlighting its diverse range of customers worldwide and the significant portion of online shoppers who utilize the platform. It explores the company's mission and core values, emphasizing customer focus, innovation, and operational excellence. The vision statement, which aims for global e-commerce leadership, is also discussed. The report examines Amazon's corporate and business-level strategies, including cost leadership, differentiation, and customer satisfaction, as well as its approach to product development and diversification. A detailed SWOT analysis is provided, outlining Amazon's strengths (customer orientation, innovation), weaknesses (imitable business model, tax avoidance allegations), opportunities (expansion in developing markets, technological advancements), and threats (cybercrime, competition). The report concludes with a list of cited references.

Running head: ANALYSIS ON AMAZON
Analysis on Amazon
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ANALYSIS ON AMAZON
Summary of the organization
Amazon is one of the biggest e-commerce company in the world in the present time and
is currently having a huge customer base. The company is situated in Seattle, Australia and the
main focus of the company is e-commerce, streaming digitally and computing on cloud. The
company was found by Jeff Bezos and it started as an online company who only sold book to its
customers (Ritala, Golnam & Wegmann, 2014). A variety of products are sold by the company
which ranges from electronics to household as well as fashion products. In the present scenario
there are almost every product available in the online site of the company. The leadership of Jeff
Bezos has taken the company to new heights and he has the urge to be at the top which is a huge
positive point for the company.
The main areas which will be discussed in the paper are the customer base of the
company and the various process by the help of which the company does its daily functions. The
various missions and the core values of the company will be explained in a detailed manner. The
main vision of the company has also been explained in a detailed manner and the various
strategies of the company have also been explained in the report. A SWOT analysis of the
company has also been provided by the company which explains all the internal and the external
traits of the company.
Customer base
Since the company has a lot of products so the range of the customers of the company is
very diverse and the company attracts a lot of customers from all parts of the world. The aim of
the company is to provide its customers with products which is wanted by the customers so the
target market of the company is the whole world. The company has products for children to

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adults and any customer visiting the site will be easily getting the products which will be needed
by the customer. It has been seen that half of the online shoppers around the world have turned to
Amazon (Haucap & Heimeshoff, 2014). Half of the customers’ in the world have planned their
holiday lists if buying from the site. Amazon prime also have a lot of customers worldwide
which is a whopping 64 percent of households (Ritala, Golnam & Wegmann, 2014). Among all
the dollars of the black Friday one third of it is spent by the users on buying products from
Amazon (Varia & Mathew, 2014).
Mission and core values
The main mission of the company has been guided by four principles which are thing in a
longer term, have passion for implementing innovation, having commitment towards excellence
in operation and have obsession for customers rather than competing with the market. The main
mission which has been followed by the company over the years is that customers are the main
stakeholders of the company and the main success of the company lies behind the attraction of
employees towards the company. A lot of products are developed by the company keeping in
mind the nature and the need of the market. The company always keeps in mind the various
needs of the customers and it aptly reviews the feedback from the employees.
The core values of the company are hiring the best employee who think out of the box,
having obsession over the customers, delivering the results on time, having the highest standards
in the workplace, learning new stuffs every day and being curious (Shavarani, Nejad,
Rismanchian & Izbirak, 2018).

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Vision
The main vision of the company is to be the online platform in which the customers will
be able to find any kind of products they want to buy from online. From the vision statement of
the company it can be said that the company aims to reach globally and attract customers from
all parts of the world. The company follows customer centric approach and makes and designs
products which are needed by the customers and their preference. The company also aims in
providing a wide range of products in its online store so that the company can attract customers
from all different age groups and genres. The component of the vision statement of the company
has been to become the leader in the global market of e-commerce (Slater, 2015). The vision
statement of the company suggests that the company holds customers as the main stakeholders.
Corporate level strategies
The corporate strategies of the company revolves around the customers of the company
and the company aims in attracting the customers to increase the rate of growth of the company.
In the last four it has been seen that the company have been providing good quality products to
its customers which has the best quality and customers are highly satisfied by the products.
Development of the products is one of the main strategies of the company for growing in the e-
commerce market. Customer satisfaction and customer retention are one of the major focus on
the Company. In corporate level the company is also becoming diverse and the company have
implemented diversification in the workplace of the company. This strategy for growth which is
being followed by the company is very useful for the growth of the company in the e-commerce
market. The corporate strategy which has been followed by the company is basically centered on
the various needs of the customers.

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Business level strategies
The strategy which is being used by Amazon for gaining competitive advantage in the
market is by the help of following Cost leadership, differentiation (McGraw-Hill Education.
Thompson, Strickland & Gamble, 2015). The company follows a combination of all these
strategies to keep itself ahead of its competitors. Amazon have ben introducing products which
are already present in the market like Kindle (Keskin & Kennedy, 2015). The company follows
the policy of cutting down the cost which will be allowing the company to sell its products in the
rural areas. The rates of the land which are available in the rural areas are less and so the
company is utilizing this opportunity of making its bases in the rural areas.
The strategy which are followed by the company is very helpful for the company and the
company is gaining a lot from following this process. In the present era Amazon ids considered
to be best strategic company. The various cloud service which is being provided by the company
have been liked by a lot of customers. With the implementation of the warehouses of the
company in the rural area the company is generating the option of job opportunities for many
people in the rural area (Sebastianet al., 2017). This aids the company in having the pride that it
is high quality products to its customers and in the same time it is also helping the native people
of a place.
SWOT analysis
Strength (internal)
At present Amazon id holding a strong position in the market and the brand image of the
company is huge in the present market scenario. The main strength of the company is that the
company is solely customer oriented. A lot of innovation is brought by the company in its
products on regular basis. The company owns a lot of third-part sellers which gives the company

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with the opportunity of selling good quality products at lesser price. The number and types of
products which is available on Amazon is huge and this aids the company in attracting a lot of
customers online. The company holds three main business which helps the company in staying
ahead of its competitors which are Amazon prime, Amazon Marketplace and Amazon Web
Series (). All these three business of the company generates a lot of profit for the company.
Weakness (internal)
The business model which is followed by the company can be easily imitated by any
other company. The company have been seen to lose margins in certain areas which might be
due to the reason of free shopping of the products by the company to the customers. Certain
launch of the products of the company have been flop like Fire Phone and Kindle Fire (Majed,
Nuraddin & Hama, 2018). In certain countries allegations have been brought to the company
regarding tax avoidance. In countries like US and Japan the company have been seen to avoid
tax which have caused harm to the reputation of the company. The company owns very less
number of offline retail stores which is a big disadvantage of the company in competing with its
competitors like Woolworths (Khanna & Sampat, 2015). This characteristics of the company
hampers the company in attracting certain customers who like to purchase items from retailing
stores.
Opportunities (external)
The company can easily expand its business in the developing markets of the world. The
company can expand its number of retailing stores so that the company can easily compete with
its competitors which has large number of retailing stores around the world. The company can
increase the technological measures which will be allowing the company in reducing the
counterfeits in sales. The company can also change its policies so that it can reduce the

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counterfeit in the sales of the products of the company (Kryvinska, Bauer, Strauss & Gregus,
2014). The various products of the in house brands of the company can be expanded by the
company so that it can increase its market share. This will not only help the company in
increasing its revenue but also reduce the completion in the present market.
Threat (external)
There are certain controversies which have reduced the image and the brand reputation of
the company. In 2010 a god number of people have boycotted the company when the company
sold the book “The Pedophile’s Guide to Love & Pleasure: a Child-lover’s Code of Conduct”
(Odeh, Warwick & Garcia-Perez, 2015). In some of the critical countries in which Amazon
operate certain regulations of the government have made it hard for the conduction of business
by the company. In certain countries like Cuba, North Korea, Styria, Iran and Sudan the
company do not ship its products (Pandit & Poojari, 2014). Since most of the business of the
company takes place online so the company might be under the threats of cybercrime which is
increasing in the present era. The company is facing aggressive competition from its competitors
like eBay and Walmart. Since the business model of the company can be imitated easily the
company is under direct threat from new entrants in the market as they can easily copy the
business model of the company.

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Reference List
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Strength and Weakness (SWOT). Research Journal of Recent Sciences
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competition or market monopolization?. International Economics and Economic Policy,
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Keskin, T., & Kennedy, D. (2015, January). Strategies in smart service systems enabled multi-
sided markets: Business models for the internet of things. In 2015 48th Hawaii
International Conference on System Sciences (pp. 1443-1452). IEEE.
Khanna, P., & Sampat, B. (2015). Factors influencing online shopping during Diwali festival
2014: Case study of Flipkart and Amazon. in. Journal of International Technology and
Information Management, 24(2), 5.
Kryvinska, N., Bauer, C., Strauss, C., & Gregus, M. (2014). A SWOT Analysis of the Soft-
Computing Paradigms SOA/SoC/Cloud Combination (C-SOA) in Software
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Majed, S. Z., Nuraddin, S. H., & Hama, S. V. S. (2018). Analyzing the Amazon success
strategies. Journal of Process Management. New Technologies, 6(4), 65-69.

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Odeh, M., Warwick, K., & Garcia-Perez, A. (2015). The impacts of cloud computing adoption at
Higher Education institutions: a SWOT analysis. International Journal of Computer
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companies navigate digital transformation.
Shavarani, S. M., Nejad, M. G., Rismanchian, F., & Izbirak, G. (2018). Application of
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