Analysis of Amazon's Organizational Behavior and Strategic Management

This report provides an analysis of Amazon's organizational behavior, focusing on its goals, objectives, vision, mission, and both its internal and external environments. It examines the company's customer-centric approach, its strengths, weaknesses, opportunities, and threats (SWOT). The report also delves into the e-commerce industry's characteristics, trends, competitors, and target market. It highlights Amazon's strong brand, extensive product mix, and revenue within the industry, while also addressing weaknesses like the imitability of its business model. The report discusses the company's opportunities to reduce counterfeit sales, expand investments, and penetrate emerging markets, as well as threats from cybercrime and competition from large retail organizations. The analysis is supported by relevant references, providing a comprehensive overview of Amazon's strategic position and operational dynamics within the e-commerce landscape.

Running Head: MANAGEMENT & ORGANIZATIONAL BEHAVIOR
MANAGEMENT & ORGANIZATIONAL BEHAVIOR

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Company's organizational goals and objectives, values, vision/mission statement, and its
internal and external environment
Being the largest e-commerce marketplace, cloud computing platform and AI
assistant provider, the main goal and objectives of the company is to grow as the most
customer-centric organization among the e-commerce industry (Zhu & Liu, 2018). The
mission statement of the Amazon is "Strive to offer the customer the best available selection
of products, at lowest prices with the utmost convenience."
The vision of Amazon is to be "Earth's most customer-centric company by letting the
customer discover and buy anything they want online" (Amazon, 2015). The values provided
by the company includes the widest and best selection of products, global reach, lowest
prices, and customer-centric approach.
The company internal environment is focused on technological innovation and
bringing the utmost value to the customer and the generic strategy gives lesser importance to
its competitors (Smith & Linden, 2017). The market is still young and has a large possibility
of expanding exponentially over the years to come. With collaborating with major partners
Amazon is acquiring more seller, developers, and consumers to match its mission and vision
statement.
Industry characteristics, trends, competitors, target market characteristics, and
emerging challenge
The growth of the industry of e-commerce is evident in the markets of India, China,
Indonesia, Russia and Mexico which have overtaken the advanced markets like USA, UK,
Japan, and South Korea, Germany, France (Amazon, 2015). Within the emerging markets,
internet infrastructure is improving and customers are embracing the benefits of online
shopping. Apparel is among the most purchased product categories in the online retail
industry.
The company has disrupted many companies however the closest and biggest
competitor remains Walmart, Costco Wholesale and other online companies that are running
in different countries (Smith & Linden, 2017).

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The target market of Amazon is mainly based on the population who are interested in
online shopping. The demographic suggests that young adults are the major customers
however young and old ages are also involved. Mostly computer literate population are
interested in this industry from around the globe.
The users of Amazon claims it to be a meaningful brand as it improves their quality of
lives. However, the company major revenue is collected from a handful of countries which
means the company is failing to gain from its investment across many markets.
Company's strengths, weaknesses, opportunities and threats analysis (SWOT)
Strengths
 Strong brand
 The product mix is extensive
 Collects the highest revenue within
the industry
It is the strongest brand within e-commerce
and also its wide product mix makes it
convenient for the customers to fulfill their
needs and wants (Amazon, 2015).
Weaknesses
 The business model can be imitated
 The presence of investment is
limited
By referring to the business model of
Amazon any other business are able to
imitate the website (Jamshidi, Rejaie, & Li,
2019). Other similar firms in developing
countries make it hard for the company to
enter into developing countries.
Opportunities
 Boost the measures to reduce
counterfeit sales
 Expand the investment with other
firms
 Emerging markets in developing
nation can be penetrated.
In the developing market, Amazon can
identify the target market characteristic
Threats
 Cybercrime
 Competition from large retail
organizations
Every online retail business is threatened by
cybercrime. Also, many retail firms are
expanding their business to an online form
which threatens the customer base of the

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individually and establish the company
presence (Zhu & Liu, 2018).
Amazon.

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References
Amazon, E. C. (2015). Amazon web services. Available in: http://aws. amazon.
com/es/ec2/(November 2012).
Jamshidi, S., Rejaie, R., & Li, J. (2019). Characterizing the dynamics and evolution of
incentivized online reviews on Amazon. Social Network Analysis and Mining, 9(1),
22.
Smith, B., & Linden, G. (2017). Two decades of recommender systems at Amazon.
com. Ieee internet computing, 21(3), 12-18.
Zhu, F., & Liu, Q. (2018). Competing with complementors: An empirical look at Amazon.
com. Strategic Management Journal, 39(10), 2618-2642.