Organisational Strategy Report: Amazon's Strategic Analysis and Growth

This report offers a comprehensive analysis of Amazon's organisational strategy, focusing on its strategic positioning and potential avenues for future growth. It begins with an introduction outlining the importance of organisational strategy, followed by an in-depth examination of Amazon's strategic positioning. This includes a PESTEL analysis, evaluating the political, economic, social, technological, environmental, and legal factors influencing the company. Furthermore, the report presents a SWOT analysis, assessing Amazon's strengths, weaknesses, opportunities, and threats. The core of the report explores various future growth options for Amazon, such as market penetration, product development, market development, and diversification, based on the Ansoff Matrix. Additionally, it examines potential strategic options for linking with other businesses, including joint ventures, mergers, and acquisitions. The report concludes by summarizing the key findings and emphasizing the value of strategic tools like PESTEL and SWOT in developing business strategies. Finally, the report includes references to support the analysis.

Organisational Strategy

Table of Content
•Introduction
•Strategic positioning of Amazon
•Future options for business growth
•Potential future strategic options for linking with other businesses
•Conclusion
•References

INTRODUCTION
Organisation strategy mention to development plan
of action that are designed by a company for its
success and growth. It can be those plans and
tactics that can be used by a business venture to
deal with issues and complexities that occur in
business sector. This report is supported to
Amazon which is an American multinational
conglomerate technology organisation.

Strategic positioning of Amazon
PESTEL analysis
Political- Amazon is an e-commerce firm that offer an online catalogue of
commodities for users all over the world.
Economical- This factor consist different components like interest rate, currency
exchange rate, labour cost, economic growth, inflation and deflation and many
others.
Social- This factor include demographic components, culture, beliefs and many more.

Contd...
Technological- It is the backbone of Amazon and technology form this firm one
of the most profitable enterprise in the world.
Environmental- Amazon has opposed pressure from investors and other
stockholders to reveal data reliable to environmental impact.
Legal- The company properly follow all rules and legislation of the government
of that nation in which it operate.

Contd...
SWOT analysis
Strengths- The organisation has a strong position and brand image in the market. It also
offers wide range of online products and services.
Weaknesses- The business venture face various issues regarding privacy that is the
main weakness of respective firm.
Opportunities- By offering different technologies like cloud computing, mobile device
and learning & emerging technologies, the firm can make growth in its business.
Threats- Trade wars and changes in regulations are main threats that affect Amazon.

Future options for business growth
Ansoff Matrix
Market penetration- In this the company can
make change in the process of products and use
different promotional tools to increase sales and
maximise customer base.
Product development- By producing new
products and services, Amazon can make
growth by adopting this strategy.

Contd...
Market development- This is more risky than product development because
existing products are launched in to new market.
Diversification- It is risky option as product and market both are new so by
adopting this growth option, Amazon can expand its business in to new
market.

Potential future strategic options for linking with other
businesses
Joint Venture- It is cooperative business venture that entered into by two and more
business entities with the motive of a particular project or business activity and
operation.
Merger- It is a corporate strategy of joining diverse organisations into single firm in
reference to develop the fiscal and operational capability of both firms that want to
be merging their business.
Acquisition- This strategic option can be defined as a corporate transaction where one
firm buy a portion or all of another organisation’s shares or assets.

CONCLUSION
This has been summarised that by adopting different growth options and strategy the
firm can make development in its business. By implementing different strategical
tools and techniques like PESTEL and SWOT analysis assist the firm in
developing business and determining the impacts of external and internal business
environment over business.

REFERENCE
• Rosenbaum, D., More, E. and Steane, P., 2018. Planned organisational change
management. Journal of Organizational Change Management.
• Mihardjo, L.W. and Alamsjah, F., 2018. The role of distinctive organisational capability
in formulating co-creation strategy and business model innovation. Polish Journal of
Management Studies. 18.
• Amazon.com Inc. 2020. [Online]. Available Through: <
https://in.reuters.com/finance/stocks/company-profile/AMZN.O>.
• PEST Analysis Of E-Retail Leader Amazon. 2020. [Online]. Available Through: <
https://pestleanalysis.com/pest-analysis-of-eretail-leader-amazon/>.

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