Amazon's Strategic Evolution: A Business Development Case Study

This case study examines Amazon's remarkable journey from an online bookstore to a global e-commerce giant. It analyzes the company's dynamic business operations, including its strategic expansion into various product categories, its adoption of innovative technologies like drone delivery, and its continuous adaptation to changing market conditions and consumer preferences. The analysis covers key strategies such as accelerating web sales in emerging markets, opening physical stores to enhance customer experience, and effectively managing customer interactions to foster loyalty. The case study also discusses the application of macroeconomic policies, including fiscal and monetary strategies, to achieve economic growth, price stability, and full employment. Furthermore, it explores the importance of neutrality in competition and empowering private sectors, using Egypt's economic development as a bonus example, highlighting the role of tourism and hospitality in driving economic growth and the government's efforts to control inflation. The study references various sources to support its findings, providing a comprehensive overview of Amazon's success and the broader economic principles at play.

ANSWER SHEET
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Table of Contents
Question 1........................................................................................................................................3
Question 2........................................................................................................................................3
Question a........................................................................................................................................3
Question a. i.................................................................................................................................4
Question b........................................................................................................................................4
Question c........................................................................................................................................4
MCQ................................................................................................................................................4
True & False....................................................................................................................................4
Answering the questions..................................................................................................................5
Question a....................................................................................................................................5
Question b....................................................................................................................................5
Bonus Question............................................................................................................................7
Reference List..................................................................................................................................9
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Question 1
The firm is always efficient towards changing its business operations and activities as per the
changing market situations and consumer preferences. Jeff Bezos sequentially increased its
operations and business channel all around the world (Teece et al., 2016). In its initial years, the
organization use to offer only books. Moreover, after some years, they involve things such as
CDs and DVDs to increase their sale and customers reach. The organization continuously looked
forward to add new commodities offering for the customers, which led the organization to
currently offer around 200 million products at the global platform. Additionally, the organization
is looking forward to deliver the products through drone technology and is producing feature
films as well.
Question 2
Amazon is a much efficient company to continuously dominate the marketplace of eCommerce.
The strategies that can be implemented on Amazon are drafted below:
Accelerations of web sales: Continuing and accelerating web sales in emerging markets of
Eastern Europe and Asia will help the company to gain an effective advantage over rival firms.
Opening physical store: Physical stores with adequate facilities will help the company to provide
Amazon Experience to the customers.
Question a
Effectively managing the interactions with current and potential customers helps the organization
to generate loyalty among customers (Rahimi and Kozak, 2017). For instance, satisfied
customers always look forward to repurchase, which ultimately increases the profitability and
productivity of the organization.
Question a. i.
Terminating the relationship with the customers is tough, however various situations are there in
the business in which ending the relationship is proves to better than continuing it. When the
relationship with the customers becomes a burden for the firm, the company should end it.
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Question b
Southwest Airlines launched IMC, which is referred to as Transparency (Southwest
Airlines, 2020). The organization looked forward to adopt the IMC approach to describe the
fairness and honesty of the organizational operations among its current and potential customers.
Question c
Mc Donald’s can focus on implementing the differentiation service approach to effectively locate
the organization as the restaurant with superior services. It will effectively help the organization
to attract a large number of customers.
MCQ
1. b) Luxury
2. d) Customer
3. a) 0.9
4. d) 0.1
5. c) 1.9
True & False
1. True
2. True
3. True
4. True
5. True
6. True
7. False
8. False
9. False
10. False
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Answering the questions
Question a
It always looks forward to increase the level of the Nation’s income, providing effective
economic growth, unemployment, inflation, and government borrowing, which is stated as the
primary objective of the approach (Den Haan et al., 2017). Moreover, the secondary objectives
of macroeconomic are price stability, sustainability, and full employment balance of payments,
equal distribution of wealth, and the income, as well as the increase in national productivity.
Economic growth is defined by the Nation's overall output of commodities. Employment is
defined by measuring the employment level and unemployed citizens within the country.
Inflation is defined by comparing the earlier prices of goods by current prices.
Question b
To accomplish the goals of macroeconomic, the significant policies that can be used within the
economy are monetary and fiscal policies (Bodenstein et al., 2019).
Figure 1: Contradictory fiscal policy
(Source: Created by the Learner)
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Figure 2: Expansionary fiscal policy
(Source: Created by the Learner)
In the above figure 1, the economy faces the gap of recessionary from YP to Y1. Moreover, the
expansionary policy looks forward to shift its demand to the AD2 to close the gap. Additionally,
in figure 2, the economy faces the Inflationary gap from Y1 to YP. In the contradictory fiscal
policy, the demand is reduced to AD2 to close the gap. The policy facilitates the central bank to
effectively influence the money supply within the Nation. The policies ultimately help the Nation
to stable the prices, maximize employments, and moderate the long-term rate of interest.
Bonus Question
Egypt is continuously looking forward to grow its economy by making sustainable growth and
improving fiscal outturns. Moreover, the country must look forward to the importance of
neutrality in competition and empower the private sectors. The main source of Egypt’s income is
the Tourism and Hospitality industry, which ultimately helps the county to grow.
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Sunday, January 1, 1899
Saturday, January 1, 1910
Saturday, January 1, 1921
Friday, January 1, 1932
Friday, January 1, 1943
Friday, January 1, 1954
Friday, January 1, 1965
Thursday, January 1, 1976
Thursday, January 1, 1987
Thursday, January 1, 1998
Thursday, January 1, 2009
Wednesday, January 1, 2020
0
4
8
12
16
Inflation Rate of Egypt
Inflation
Figure 3: Inflation rate of Egypt from 2019 to 2022
(Source: Created by the Learner)
The inflation rate of Egypt was 13.87 in the year 2019, 9.97, in the year 2020 (Plecher, 2019).
However, it is assumed that the economy will face a downfall in its inflation rate, which will be
approximately 7.22 in the year 2021 and 7.01 in the year 2022. It will effectively help the
business and household to protect them from future risks. It also represents that the government
of Egypt ill control the monetary supply in the next two years.
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Reference List
Bodenstein, M., Guerrieri, L., and LaBriola, J., 2019. Macroeconomic policy games. Journal of
Monetary Economics, 101, pp.64-81.
Den Haan, W., Ellison, M., Ilzetzki, E., McMahon, M., and Reis, R., 2017. Happiness and
wellbeing as objectives of macroeconomic policy: Views of economists. VOX EU. pp.1-9
Plecher, H., 2019. Egypt- Inflation rate of 2024 | Statista. Available at:
https://www.statista.com/statistics/377354/inflation-rate-in-egypt/ (Accessed: 21 February 2020).
Rahimi, R., and Kozak, M., 2017. Impact of customer relationship management on customer
satisfaction: The case of a budget hotel chain. Journal of Travel & Tourism Marketing, 34(1),
pp.40-51.
Southwest Airlines, 2020. Transfarency - Available at:
https://www.southwest.com/html/air/transfarency/ (Accessed: 21 February 2020).
Teece, D., Peteraf, M., and Leih, S., 2016. Dynamic capabilities and organizational agility: Risk,
uncertainty, and strategy in the innovation economy. California Management Review, 58(4),
pp.13-35.
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