Management Analysis of Amazon's Corporate Strategy: A Report

This report provides a comprehensive analysis of Amazon's corporate strategy, examining various facets of its business operations. It delves into Amazon's strategic management, particularly focusing on its position as a market leader in the e-commerce sector. The report discusses Amazon's innovative approaches, including the use of artificial intelligence and robotics in its warehouses, and its strong financial performance. It also addresses recent challenges, such as the alleged theft ring involving delivery staff, and evaluates the potential impact on the company's revenue and customer relationships. The report highlights Amazon's brand value, customer confidence, and its proactive responses to issues, including its commitment to corporate social responsibility. It references various studies and articles to support its findings, offering insights into Amazon's management practices, strategic planning, and overall corporate strategy.

Running head: MANGEMENT
Analysis of Amazon in corporate strategy
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ANALYSIS OF AMAZON IN CORPORATE STRATEGY
Introduction
Corporate strategy refers to the strategic plan of an organization, along the framework
of which they direct their goals and activities through the application of strategic
management. Strategic management is crucial in maintaining and building business relation
in achieving target goals of the company and maintaining a good image in the public eye
(Welford 2016). The discussion is based on alleged Amazon theft ring. The topic will
examine the various factors relating to corporate strategy management in Amazon.
Discussion
Amazon is an American based multinational technology company that is reputed for
its largest online marketplaceand founded by Jeff Bezos in 1994 with its headquarters in
Bellevue Washington. Amazon is regarded as the largest internet company by revenue and
second largest private employer in the US. Amazon is one of the largest technology
companies in the same league as Facebook, Google and Apple (Rossman 2016).
Amazon has established itself as a market leader in the ecommerce segment. It has
one of the largest warehouse and sells almost every item online. It has built a niche in the
ecommerce segment for its efficient customer service and prompt delivery system. Amazon
has one of the largest warehouses in the world and it is systematic, competent in controlling
the quality of goods that is transported to the customers. Amazon is valued at $890 billion
and Forbes has listed Amazon as the most innovative company of 2017, while it ranked third
in MIT’s smart company list of 2017. The growing revenue of Amazon is another pointer that
shows that the company has a strong corporate strategic management. In recent years, the
company has seen a marked increase in its sales, by 160% with a profit of $232.88 billion in
last year (2018), which is 31% more than 2017 (Garner 2018). The primary focus on the
company is investing innovative technology solutions, with the growing interest of artificial

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intelligence and robotics. It has invested considerable amount of resources in developing
robots in their warehouses using them to pack and pick orders.These aspects shows that
Amazon is a very innovative in its strategy and planning. Amazon is prioritizing in investing
in various other fields such as web streaming avenue and other ventures
Recently, Amazon’s came under scrutiny in regard with involvement of delivery staff
in a $10 million theft ring. According, to the news, two Amazon delivery staff are allegedly
involved in a $10million theft ring that sold stolen items to a fake pawnshop, who then resold
them online under the name “Bestforyouall” and “Freeshipforyou” (Arbel 2019). The online
fraud had been operating for the past six years and had gone unnoticed by the officials.A
recent investigation led to the disclosure, when a police official noticed that a delivery staff
had a lot of pawnshop transaction.
The issue of this fraud may have a far-reaching effect on the company’s revenue as
well as the customer company relationship. Privacy policy is rising concern for many online
platforms, it is crucial to prevent any leakage of customer information to third party users
(Spencer 2016). It is a huge negligence and slight from the company, which is a front-runner
in the e- commerce sector. Online shopping has its sceptics,owing to innumerable cases of
fraudulent about the products received.To illustrate, customers sometimes do not receive the
product at all, or the product does not match the description, causing trust issue among the
users who are vary to try the service again. Hence, this kind of scheme adds to the mistrust
amongst its current users. Negative press can also effect the sales adversely and discourage
retailers to invest in the company.Therefore, it raises a very important question for Amazon,
if this effects amazon sales and future amazon consumers. However, according to Fortune
magazine, this has no effect on the sales of Amazon. This is significant for the company, that
even though, Amazon’s privacy policy has raised suspicion yet, it does not seem to deter in
sales. This is owing to the fact that, Amazon has immense brand value and enjoys significant

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consumer confidence. This is another segment of strategic corporate management, is building
a brand value and a strong customer base. Amazon’s team knows their demographic and
devices strategy accordingly (Jamieson 2019). Amazon has introduced a pick up policy,
where customers can pick their products from the store eliminating the intrusion of at home
delivery service and enabling the customers to access their products.
In response to the fraud accusations, Amazon has said it does not tolerate any form of
fraudand prohibits sale of stolen products.Sale of stolen and fake products has been an
ongoing battle for many e commerce websites. It was recommended that Amazon should
introduce strict seller and product standard policy. However, Amazon may not change its
monitoring policy since the company makes more profit from the third-party sellers (Guo et
al. 2016, 359-383).
The company promised it would refund the money to the customers if the product was paid
for and reimburse the customer for the inconvenience. This again shows very good ethical
practice of the company which apologises for the inconvenience irrespective of who is to be
blamed. Thus acting on reparative measures. Analyst believe that, since Amazon has a very
strong customer base, this news might not be too upsetting for the majority customers who do
not care much about counterfeit productsand it might not affect the brand value since this
brand has consistently delivered.
Conclusion
Strategic corporate measures are synonymous with any corporation, it enables them to
evaluate and structure better functional method to overcome disadvantages. Amazon faces
criticism for its privacy lapse, which has caused inconvenience to the consumers. However,
the organization is prompt in solving the issue and implementing restorative methods through
corporate social responsibility. A value which customer recognises and appreciates and helps

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the organization maintain its brand value. (Alhouti, Johnson and Holloway 2016 ,1242-
1249).

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Reference
Alhouti, Sarah, Catherine M. Johnson, and Betsy Bugg Holloway. "Corporate social
responsibility authenticity: Investigating its antecedents and outcomes." Journal of Business
Research 69, no. 3 (2016): 1242-1249.
Arbel, Tali. 2019. "How An Alleged Amazon Theft Ring Got The Goods". Fortune.
https://fortune.com/2019/08/02/amazon-theft-ring/.
Garner, Blake A. "Amazon in the Global Market." Journal of Marketing & Management 9,
no. 2 (2018).
Guo, Yue, Yongchuan Bao, Barnes J. Stuart, and Khuong Le‐Nguyen. "To sell or not to sell:
Exploring sellers' trust and risk of chargeback fraud in cross‐border electronic
commerce." Information Systems Journal 28, no. 2 (2018): 359-383.
Jamieson, Thomas. Using Amazon’s Mechanical Turk for Experiments on Public Opinion
About Public Policy. SAGE Publications Ltd, 2019.
Rossman, John. The Amazon way: 14 leadership principles behind the world's most
disruptive company. Vol. 1. Clyde Hill Publishing, 2016.
Spencer, Shaun B. "Predictive analytics, consumer privacy, and ecommerce regulation."
In Research Handbook on Electronic Commerce Law. Edward Elgar Publishing, 2016.
Welford, Richard. Corporate environmental management 1: systems and strategies.
Routledge, 2016.

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