LSBM306: Amazon's Entrepreneurial Vision and Business Model Report

This report provides a comprehensive analysis of Amazon's success, focusing on the key drivers of innovation, strategic frameworks, and the application of the Blue Ocean Strategy. It examines the technological, social, long-term, economic, environmental, and passion of invention factors that contribute to Amazon's growth. The report delves into the strategies Amazon employs to shape its entrepreneurial vision and business model, including the Ansoff Matrix (market penetration, product development, market development, and diversification) and Porter's Generic Model (cost leadership, differentiation, and focus strategies). Furthermore, it highlights how Amazon's success can be attributed to the effective implementation of the Blue Ocean Strategy, emphasizing cost-friendly measures and differentiation. The report concludes by summarizing the strategic tools and approaches Amazon uses to maintain a competitive edge in the e-commerce and digital landscape.

AMAZON

TABLE OF CONTENT
A) Introduction.............................................................................................................................3
B) Key drivers of innovation contributing to the success of Amazon.........................................3
C) Strategies undertaken by Amazon to shape their entrepreneurial vision and business model.
......................................................................................................................................................5
D) Amazon's success can be attributed to the successful application of the “Blue Ocean
Strategy”......................................................................................................................................7
E) CONCLUSION.......................................................................................................................9
REFERENCES..............................................................................................................................10

A) Introduction
Amazon is the multinational company which is based in the Seattle, Washington. The company
mainly focuses on the e-commerce facility along with digital streaming or artificial intelligence.
Amazon is expanding its operations all over the world and its growth and profitability increasing
over the years. In this report, the importance of the creative elements that the Amazon uses and
its contribution towards its success. The strategic tools that the Amazon includes in its
management and explain the Ansoff's Matrix or Porter's generic modal briefly along with the
'Blue ocean Strategy' an how the company is using this as successful application.
B) Key drivers of innovation contributing to the success of Amazon
A lot of drivers are present for Amazon to get in innovation which is going to be good for
the brand image and value of the company is also going to increase. It is important for the
company to make sure that they keep these drivers in mind so that their objectives and goals will
be fulfilled which is good for a long run of the organization. The following report is going to
discuss the key drivers of Amazon.
 Technological factor
There are a lot of changes which are coming in the technological aspect of the company
which needs to be maintained so that there is going to be effective growth which is going to be
present (Xie, 2016). Amazon is investing a lot of funds in this aspect which is making the
company have higher productivity and more uniqueness which can come in the organization as
well which is going to be very good for a long run. Right research and development department
is present who use the technology well on Amazon so that there are more inventions and
innovations which can take place so that the company will be able to gain competitive advantage.
 Social factor
The demands and needs of the customers is changing which is important for the company
to maintain which is going to make the sustainability of the company be present. The lifestyle
and standard of living of society is changing which Amazon must take care of so that there is
going to be higher functioning and profitability which is going to be present in the company so
that there is going to be good sales and satisfaction of the customers which is going to be present
(Shen and et.al., 2020).
 Long term thinking

Amazon is having a strong base for themselves because the company thinks for the future
always which is a very important factor so that there is going to be better operations. Amazon is
having a strong functioning according to the growth of demand and change in the mentality of
the society so that the company will be able to have higher operations (Koev and et.al., 2020).
The pricing of the products and quality of the products is also set of Amazon after looking at the
long term so that there is going to be effective working which is going to be present.
 Economic factor
The GDP and unemployment rates in the country is improving which is a great factor for
the company since they would be able to price their products accordingly and have the right
profit margins. There is a lot of investment which Amazon is having in innovation and research
and development department so that the company will be able to gain competitive advantage
which is a very essential factor. There are a lot of methods which Amazon has adopted so that
there is a good economic stability which is present in the company and there are more customers
which can get attracted.
 Passion of invention
Invention is a very essential factor so that there is going to be higher operations which are
going to be present. Amazon is always wanting to provide the customers with better products and
more varieties of the products so that they can be loyal and be attracted to the organization
throughout which is going to be a great factor for the company (Miles and Van Clieaf, 2017).
Amazon is putting in their best for the satisfaction of the customers which is going to make the
performance be higher and make sure that there is going to be better functioning and stability.
 Environmental factor
The environment is being impacted majorly which is not a good factor for the company
since there is a delay in getting in the products and services on time. There are a lot of
governmental policies and laws which are present which is going to make the functioning and
operations of the company be even higher (Li, 2016). Demands of the customers have to be
matched which is going to be good for the reputation and standards of the company which is
going to be helpful for the company to have good loyalty of the customers which would be
present.

C) Strategies undertaken by Amazon to shape their entrepreneurial vision and business model.
Amazon is using various strategies, frameworks and approaches to shape its
entrepreneurial vision and business model. Company is generally guided by some principles such
as passion for invention, long term thinking, customer oriented rather than competitive focus.
The most essential thing that Amazon keep in mind to build or shape its entrepreneurial vision is
to focus on long term and not short term. The strategies of Amazon is based on the things that
don't change rapidly, they ignore the failures and sees the opportunity in the environment,
stresses upon the customers and not competitors (Sastry, Katvi, and Tourani, 2019). The models
and strategies used by Amazon to shape its entrepreneurial vision and business model are:
Ansoff matrix and Porter Generic Model.
Ansoff Matrix
It is one the strategic tool that is used by firms to plan and analyse their growth strategies
and product. This matrix includes four different strategies for business that are- Market
penetration, product development, market development and diversification.
Market penetration: It refers to the selling of products that are already existed in the existing
markets. Market penetration strategy is used by amazon in confident and aggressive manner.
Amazon decreases the prices of existing the products to attract the new customers which is one
of the strategy under market penetration. Amazon does various promotional and distributional
efforts to increase its customers. It also tries to find its competitors in the same or existed market
place. All these are some strategies which are used by Amazon in market penetration.
Product development:Product development strategy is one of the core strategy used by Amazon.
Product development refers to the development or introduction of new products in the existing
market. First and foremost Amazon started selling physical books online and today Amazon sells
almost everything that can be sold on online platform. Amazon is known to be the largest retailer
in the world selling more than 500 million products online (Thompson, 2019). The products
range involves clothing, footwear, groceries, electronics, jewellery, home and kitchen appliances,
books, sports accessories etc. The strategies that are included in product development and used
by Amazon are investment in research and development to manufacture new products in the
existing market, creating strategic partnership with other firms to gain access in relation with
distribution channels.

Market development: Market development includes searching of new market for already existing
products. Amazon is engaged in market development in most systematic manner. It is trying to
enter into the market with their existing products. By using product development strategy
Amazon is attracting different customer segment, expanding its business in both domestic and
international environment. Currently amazon has sites in 13 countries which includes Canada,
China, UK and India (Islami, Mustafa, and Latkovikj, 2020). Amazon is providing Prime free
same day and Prime free one-day services in more than 8000 cities and towns.
Diversification: Diversification involves development of new products to sell in new market. In
diversification both product development and market development is required, so its quite the
riskiest strategy. Amazon has diversifies its operations in media, hardware, advertising and more
other segments. There are two types of diversification strategies that is related diversification and
unrelated diversification. Amazon follows both type of diversification strategies.
Porter's Generic model
Porter generic model involves 4 basic strategies that are cost leadership, differentiation,
cost focus, and differentiation focus. Amazon uses porters generic strategies to take competitive
advantage from other firms. It uses this strategy to compete in the online retail market. It uses
intensive growth strategies for growth and expansion. This strategy enables Amazon to offers or
avails goods and services at affordable rates.
Cost leadership
Amazon uses cost leadership strategies for increasing profits and reducing the costs and charging
average industry prices. It charges lower prices to increase the market share but still getting
reasonable profits. By following cost leadership strategy Amazon builds competitive advantage
through developing information technology infrastructure. It invests in research and development
to optimize the IT resources.
Differentiation
Differentiation involves developing or producing different products from that of their
competitors by focusing on durability, functionality, features, brand value that customers value.
Amazon uses differentiation strategy by doing good research, development and innovation, to
deliver high quality goods and services and creating good or effective sales and marketing.
Amazon stays in constant in new product development because its risky process.
Focus strategy

Amazon uses focus strategy by concentrating on particular niche market and understanding the
dynamics of that environment and also understanding the needs of the customers. It mainly
focuses on getting cost advantage in the target market.
Differentiation leadership
Amazon uses differentiation leadership to target the larger market and to gain the competitive
advantage through differentiation strategy in the whole industry. This strategy generally ensures
that the price associated with the product chargers premium price for the product (Omsa,
Abdullah, and Jamali, 2017). The product cost involves extra production cost and extra value
added features in the premium price. Some strategies used by Amazon in differentiation
leadership are providing premium quality product, strong branding, regular promotional support
and industry wise distribution. Amazon is persuading customers to become brand loyal, and they
are paying premium amount for the products.
D) Amazon's success can be attributed to the successful application of the “Blue Ocean Strategy”
Amazon is contributing to the economy of the country by using the right strategies and
measures which the company is taking which is going to be a great factor for the organization to
have. There has to be a balance which has to be present so that there is going to be higher
operations and functioning which is going to be there and that is going to make the profit
margins higher. Blue ocean strategy is a very good and effective measure which is being taken
by Amazon so that there is going to be higher operations and profit margins. There have to be
cost friendly measures and differentiation products for the customers which has to be present so
that there is going to be effective sales (Xue and Xu, 2017). The customers belong from different
backgrounds which has to be present so that there is going to be good sales and productivity
which is going to be present which is good for the overall operations. There are a lot of
boundaries which are present for Amazon but due to the right experience in the market there are
effective decisions which are being taken by the management of the company so that there is
going to be better functioning and sales. Amazon is not having competitors in the market which
can compete with them effectively and efficiently therefore they make the best decisions which
is going to be good for the overall functioning and productivity of the company.
Amazon has expanded themselves globally and there are a lot of new markets which are
still being explored by the company so that there is going to be higher sales. The competition for

Amazon are Apple, Google, eBay, Alibaba, etc. which the company will have to make sure that
they are using this strategy to be able to compete with them. There are different beliefs and
values which all the customers of the organization have, and they have to be well maintained so
that there is going to be effective working which would be present. The customers want the best
from the company because of the reputation which the organization has got for themselves over
the years of working. The company has to make the right decisions at the right time so that there
would be better operations and structure of the company is going to be better which is good for a
long run of the company which would be present. Power and depth of the company in the market
is going to be present which is going to be good for a long run of the company since they will be
able to have higher profit margins and that is good for the brand value and reputation of the
company (Garud, Gehman and Tharchen, 2018). The company's existence in the market is huge
which is going to make the working of the company higher and that is good potential of the
company is huge because they were able to make a place in the market effectively so that there is
going to be higher operations and productivity which is going to be present.
There has to be good exploring which is required by the company in the market so that
there is going to be effective working and performance of the company is also going to increase.
The rules for the game have to be set according to the company and the competition in the
market is not going to be relevant which is going to be present. The company is working for
higher profitability in the market by satisfying the demands and needs of the customers so that
there is going to be higher functioning. There is going to be a rapid growth which is going to be
present and that is going to make the company gain competitive advantage in the market easily
(What is blue ocean strategy? 2020). There is good unknown market space and competition
which is going to be present so that the company will be able to create better fight for the
competitors. Amazon captured the attention of the customers easily because they provide
varieties of products and services with different pricing so that they can get in maximum
customers which is going to make the performance of the operations and productivity higher.
There has to be well described actions which needs to be present so that there is going to be good
performance and operations which is going to be there so that there is going to be rapid growth
and the company will be able to make the maximum in the market as well. There are a lot of
opportunities which Amazon is having for themselves in the market which is going to be good
for the further growth of the company.

E) CONCLUSION
From this report it is concluded that Amazon uses various innovation key drivers that are good
and valuable for the branding of the company. It makes sure that these drivers are effectively
working so that goals and objectives can be fulfilled of Amazon which can be beneficial for the
long run. Amazons success can be attributed through Blue ocean strategy. It is contributing in
economy by using proper and accurate strategy. The blue ocean strategy is the very good
measure taken by Amazon which will ensure higher production and higher profit margins. It is
using cost effective measures and differentiation products to run the business in long term. The
management of the Amazon is so experienced that it takes right decisions so that there sales can
be increased and overall functioning of the company can be improved. Amazon has expanded
their operations in other countries to increase the sales globally. The company is doing their
exploration part very effectively to understand the customers and their needs in the market which
is the most beneficial part in business. Amazon captured the market so productively that because
they have variety of products and services with different pricing. Amazon uses various model
like Ansoff matrix and Porter's Generic model to shape their entrepreneurial vision and business
model. These models are includes various strategies that are helpful for smooth running of
organization that is of Amazon. These strategies ensure the organizational goals and objectives
can be achieved by effectively and efficiently applying various approaches. The strategies
involved in these models provides competitive advantage to the Amazon from other firms.

REFERENCES
Books and Journals
Garud, R., Gehman, J. and Tharchen, T., 2018. Performativity as ongoing journeys: Implications
for strategy, entrepreneurship, and innovation. Long Range Planning. 51(3). pp.500-509.
Islami, X., Mustafa, N. and Latkovikj, M. T., 2020. Linking Porter’s generic strategies to firm
performance. Future Business Journal. 6(1). p.3.
Koev, S.R and et.al., 2020. Resource Strategy for Enterprise Management as a Tool to Ensure Its
Competitiveness. Academy of Strategic Management Journal. 19(4). pp.1-8.
Li, X., 2016, July. Study on the Influence of Strategic Network Structure on Enterprise
Management Innovation Behavior. In 2016 5th International Conference on Social
Science, Education and Humanities Research. Atlantis Press.
Miles, S.J. and Van Clieaf, M., 2017. Strategic fit: Key to growing enterprise value through
organizational capital. Business Horizons. 60(1). pp.55-65.
Omsa, S., Abdullah, I. H. and Jamali, H., 2017. Five competitive forces model and the
implementation of Porter’s generic strategies to gain firm performances.
Sastry, V. V. L. N., Katvi, S. and Tourani, P., 2019. AMAZON’S STRATEGIC ANALYSIS
AND IT’S ENTERPRISE STRATEGY FOR THE CLOUD. Advance and Innovative
Research, p.186.
Shen, Z and et.al., 2020. Study on the functional mechanism of enterprise internationalization
strategy adjustment in the digital era. MS&E. 780(7). p.072002.
Thompson, I., 2019. Ansoff Matrix. In The Procurement Models Handbook (pp. 45-47).
Routledge.
Xie, X., 2016. Study on the Identification of Key Factors of Core Enterprise Knowledge
Innovation Ability—Perspective of Distributed Innovation. DEStech Transactions on
Environment, Energy and Earth Sciences, (peee).
Xue, C. and Xu, Y., 2017. Influence Factor Analysis of Enterprise IT Innovation Capacity Based
on System Dynamics. Procedia engineering. 174. pp.232-239.
Online
What is blue ocean strategy? 2020. [Online]. Available Through:
<https://www.blueoceanstrategy.com/what-is-blue-ocean-strategy/>.