Strategic Management Analysis and Implementation: Amazon Malaysia

This report provides a comprehensive strategic management analysis of Amazon Malaysia. It begins with an introduction to strategic management and an overview of Amazon's business, focusing on its strategic direction over the past five years, including its human and intangible assets and core capabilities. The report then delves into a detailed PESTLE analysis of Amazon Malaysia, examining political, economic, social, technological, environmental, and legal factors. An industry life cycle analysis places Amazon within the e-commerce landscape, followed by a SWOT analysis identifying strengths, weaknesses, opportunities, and threats. A competitor analysis assesses Amazon's position within the Malaysian market, complemented by a discussion of its competitive advantages and industry scenarios. The report further outlines Amazon Malaysia's mission and vision statements and its strategic capabilities. It then proposes strategies to defend Amazon's core business and concludes with an evaluation of the resource implications of the recommendations. The report is a valuable resource for understanding Amazon's strategic position and potential future directions in Malaysia.

Running head: STRATEGIC MANAGEMENT ANALYSIS
STRATEGIC MANAGEMENT ANALYSIS
Name of the Student
Name of the University
Author Note

1STRATEGIC MANAGEMENT ANALYSIS
Table of Contents
Task 1.............................................................................................................................2
Introduction................................................................................................................2
About the company....................................................................................................2
Strategic direction of the organization in the last five years......................................2
Task 2.............................................................................................................................3
PESTLE analysis of Amazon Malaysia.....................................................................3
Industry life cycle analysis of Amazon Malaysia......................................................4
SWOT analysis of Amazon Malaysia........................................................................5
Competitor analysis of Amazon Malaysia.................................................................6
Discussion based on competitive advantage of Amazon among the competitors.....7
Industry scenarios that are facing Amazon Malaysia................................................7
Task 3.............................................................................................................................8
Mission and vision statement of Amazon Malaysia..................................................8
Strategic capabilities of Amazon Malaysia................................................................8
Task 4.............................................................................................................................9
Strategies that will be implemented by Amazon to defend the core business...........9
Task 5...........................................................................................................................10
Analyse and evaluate the resource implication of the recommendations................10
Conclusion................................................................................................................11
References....................................................................................................................11

2STRATEGIC MANAGEMENT ANALYSIS
Task 1
Introduction
As discussed by Aguinis, Edwards and Bradley (2017), strategic management can be
defined as the method of continuous planning, proper monitoring and effective analysis and
further assessment of the necessary steps that can be applied by the organization in order to
meet the goals and objectives. The emerging technologies, expectations of customers and
fast-paced innovation levels are able to influence the strategies that can be applied by
organizations for the future processes. The leaders of the company are supported by the
results that are obtained after implementation of strategic management based process (Ahmad
et al. 2015).
About the company
Amazon.com Inc. is multinational organization that operates in the technology based
industry and provides its goods and services to customers in diverse parts of the world. The
company has its base in Seattle, Washington and mainly focusses on the activities based on e-
commerce, digital streaming, artificial intelligence and cloud computing. The firm has been
successful in appropriate growth of its operations in Malaysia with the help of the services
and products offered to the customers (Amazon.com 2019).
Strategic direction of the organization in the last five years
Resources of Amazon –
Human assets – The CEO of Amazon Jeff Bezos and the employees are the most
significant human resources or assets who are able to support the operations of the company
and attract the customers as well (Ahmad et al. 2015).

3STRATEGIC MANAGEMENT ANALYSIS
Intangible assets - According to Albrecht et al. (2015), the strategy that has been
implemented by Amazon Malaysia is based on the ways by which technological capabilities
related to business success can be used in an effective manner. The organization has followed
the cost leadership strategy in order to offer the extreme value to consumers at lowest prices.
The corporate strategy which is applied by the organization can be described as the
concentric diversification. Technology is thereby considered to be the major intangible
resource of Amazon.
Capabilities of Amazon - The process of leveraging technology in order to gain
business success is able to support the strategic direction that has been followed by Amazon
Malaysia in the last few years (Ahmed Haji 2015). The different sources of competitive
advantage are able to drive the strategies applied by the organization and the direction that is
followed as well. The convenience that Amazon aims at providing the customers is also
considered to be an important part of the strategic direction of the organization (Alom et al.
2016).
Task 2
PESTLE analysis of Amazon Malaysia
The performance of Amazon Malaysia can be analysed with the help of detailed
discussion based on the macro environment based aspects. The PESTEL framework can be
applied in order to analyse the factors that have an impact on the operations of Amazon in
Malaysia.
Political factors – The levels of political stability in a middle income country like
Malaysia are quite moderate. Malaysian government supports the operations of e-commerce
based organizations by increasing the efforts related to cyber security. The opportunities are

4STRATEGIC MANAGEMENT ANALYSIS
mainly provided to Amazon in order to sustain the growth that it has already experienced in
the other countries (Barrick et al. 2015).
Economic factors – The exports have been able to play a key part in progress of the
economy of Malaysia. The operations of online and offline businesses of Amazon are based
on the economic trends and the vicissitudes that have taken place in the macro environment.
The new economic policies that have been developed by the government of Malaysia have
influenced Amazon in a positive manner (Cândido and Santos 2015).
Social factors – The social condition in Malaysia is based on the increasing
dominance of cosmopolitan and elite class of the country and expansion of middle class as
well. The lack of huge difference between the social class in Malaysia is a major support that
is provided to the ways by which Amazon is able to attract customers belonging to different
groups. The levels of disposable incomes are also quite high and they are able to make
investments in purchasing different products online (Chatterji et al. 2016).
Technological factors – The levels of technological advancement are able to affect
Amazon and technology is considered to be the central aspect of the operations of the
company. Technological environment and advancement in Malaysia is considered to be an
important part of the ways by which Amazon can offer the products to the customers in the
country. The national development of the country is influenced by the technological
advancements in a huge manner (Deresky 2017).
Environmental factors – Natural environment of Malaysia is affected in a negative
manner by the high levels of human intervention in the country. The alterations that have
been implemented in the landscapes and ecosystems of Malaysia have a negative effect on
the environment. Amazon has increased the interest in different environmental programs and

5STRATEGIC MANAGEMENT ANALYSIS
business sustainability has also been emphasized by the organization (Helfat and Martin
2015).
Legal factors – The product based regulations that have been developed by the
government of Malaysia have increased in the last few years. The regulations based on
environmental protection have provided major growth opportunities to Amazon in Malaysia.
Import and export related regulations in Malaysia have a major impact on the strategies
developed by Amazon (Hillary 2017).
Industry life cycle analysis of Amazon Malaysia
Industry life cycle mainly depicts diverse stages in which the business organizations
are able to operate, progress, prospect and slump within the industry. The organizations
follow industry life cycle in the course of their operations in different industries and markets.
Different parts of the industry life cycle that are related to operations of various organizations
in the industry include, start-up, growth, shakeout stage, maturity and decline. Amazon.com
is currently operating in the maturity stage in e-commerce industry (Hitt, Ireland and
Hoskisson 2016). The operations of Amazon in Malaysia is however growing in a huge
manner with the support that is provided by the various services and products that are
provided to the consumers. The revenues and profitability that have been earned by the
organization in e-commerce industry of Malaysia is able to support the methods by which
Amazon is able to uphold its place (Ho, Ahmad and Ramayah 2016). The organization will
be able to continue the profitable operations in e-commerce industry with the implementation
of effective strategies. The competition that is faced by the organization will be faced by
Amazon by offering the best levels of experiences to the customers (Ismail et al. 2018).

6STRATEGIC MANAGEMENT ANALYSIS
SWOT analysis of Amazon Malaysia
The success that has been gained by Amazon.com in the online retail industry of the
world and in Malaysia is based on the internal environment that is developed by the
organization. The SWOT framework is used in order to analyse the internal strengths and
weaknesses of the company and the external opportunities and threats that are faced as well
(Jain, Sandhu and Goh 2015).
Strengths – The strong brand value that has been created by Amazon is considered to
be an important factor related to the proper growth of the organization. The expansion of
diversification of business operations of Amazon.com is able to support the organization and
its operations in a huge manner (Jamil et al. 2016). Technological innovation and customer
experiences are also considered to important aspects that are related to the proper growth of
Amazon. Amazon has been able to become an important player in cloud computing and
Amazon Web Services is a leading provider based on the cloud based services. The loyal
customers have been able to retain the revenues of Amazon in the online retail industry
(Jarzabkowski and Kaplan 2015).
Weaknesses – The business model that is used by Amazon.com is easily imitable in
nature and the competitors can also provide major pressure on the organization. The physical
or brick-and-mortar presence of the organization is also quite low which has an impact on the
operations of Amazon in the retail industry. The levels of penetration of Amazon in the
developing markets are quite low and this is considered to be a major weakness of the
organization (López-Cabarcos, Göttling-Oliveira-Monteiro and Vázquez-Rodríguez 2015).
Opportunities – Amazon has the opportunity to grow further in Malaysia and in the
other developing markets as well. The investments can also be made on development of
brick-and-mortar presence in different parts of the country. Partnerships can also be made by

7STRATEGIC MANAGEMENT ANALYSIS
Amazon with different organizations in developing countries like Malaysia. This will be
helpful for the organization to improve the presence in developing markets (Madanchian et
al. 2015).
Threats – The aggressive levels of competition that are being faced by Amazon.com
in online retail industry of Malaysia are considered to be major threat for the operations.
Cybercrime is also a major issue that is faced by Amazon in the country, which has a key
influence on the profitability levels. The physical retail organizations like, Giant
Hypermarket, Sunway Group and Mydin are able to provide tough competition to
Amazon.com (Mellahi et al. 2016).
Porter’s five forces analysis of Amazon Malaysia
Competitive rivalry – The aggressiveness of firms in the online retail industry is quite
high and the low switching costs have increased the competitive rivalry among organizations
in a huge manner. Amazon has to face direct competition from the physical retailers like
Walmart as well.
Bargaining power of customers – The customers can gain information based on
different products that are offered by the organization. High availability of goods has also
played a major role in increasing the bargaining power of the customers of Amazon (Helfat
and Martin 2015).
Bargaining power of suppliers – Suppliers have the ability to impose a strong force
on Amazon and prices of the products are also influenced in a huge manner by the levels of
supply of raw materials (Jarzabkowski and Kaplan 2015).

8STRATEGIC MANAGEMENT ANALYSIS
Threats of substitutes – The availability of substitutes is high in the online and
physical retail industry as well. The customers have the option to switch to the low cost
substitutes.
Threats of new entrants – The chances of entry of new organizations in retail
industry are quite moderate due to the requirement of high levels of capital. The brand value
that is developed by Amazon is also able to reduce the impact of new companies (Mone and
London 2018).
Competitor analysis of Amazon Malaysia
The online retail industry is considered to be highly competitive in nature and
emergence of the levels of internet shopping is a major threat to the brick and mortar business
organizations. The retail environment in Malaysia has also become competitive in nature and
the organizations in the country need to develop the operations in such a manner so that they
are able to face the competition in an effective way. Online shopping has emerged as a major
industry in the last few years due to the extensive usage of internet (Mone and London 2018).
The trend related to online activities have started playing a major role in the ways by
which products and services are offered to the customers. Amazon Malaysia also faces major
levels of competition in the online retail industry of the country. The big merchants in
Malaysia have started their products to the customers online and have joined the online
marketplace as well. The major organizations that have started providing competition to
Amazon Malaysia are, Tesco, Aeon Big, Parkson, Padini, Bata, Kamdar, Senheng, Guardian,
HSL, Guardian, Eu Yan Sang, Sa Sa, Courts, Tomei, myNEWS.com, MPH, PetsMore.com,
Al Ikhsan Sports (Morden 2016).
The large retailers have started feeling the need to sell their products online in order to
maintain the levels of profitability and increasing the customer base as well. E-commerce has

9STRATEGIC MANAGEMENT ANALYSIS
proved to be a major area of growth for the global organizations that operate in different
countries. The positioning that is developed by the retailer is able affected by the online sales
and proper use of media as well (Jarzabkowski and Kaplan 2015). The organizations like
Amazon will be able to reach the consumer easily with the help of online shopping facilities
that are provided to them. The convenience levels offered online shopping options have an
impact on the rise in levels of competition (Munoz et al. 2015).
Discussion based on competitive advantage of Amazon among the competitors
Amazon Malaysia has been able to gain a competitive advantage in the online retail
industry with the support of its diverse range of products and services that are offered to the
customers. The delivery based facilities of Amazon are considered to be a major factor that is
able to provide an advantage to the firm in comparison to the others in the retail industry.
Amazon also provides “same day delivery” options to the customers in order to increase their
convenience levels (Hitt, Ireland and Hoskisson 2016).
Industry scenarios that are facing Amazon Malaysia
The retail industry is able to offer key opportunities to Amazon in order to
communicate with the customers and offer the best quality products as well. The online
business of Amazon is growing on a continuous basis and the physical retailers are affected
by high levels of internet usage in the process of shopping. The time that is required for
purchasing the products is also a major factor that affects the distribution channels of
Amazon. The use of voice-based services has increased in the last few years and Amazon
Alexa is facing fierce competition from Google Assistant, Alexa, Cortana and Siri (Chatterji
et al. 2016).

10STRATEGIC MANAGEMENT ANALYSIS
Task 3
Mission and vision statement of Amazon Malaysia
The mission statement and vision statement of Amazon is able to contribute to the
status that has been gained by the organization. The success of Amazon is mainly based on
the stringent measures that have been implemented in order to fulfil the mission and vision
statement (Amazon.com 2019). Amazon has developed the following mission statement in
order to maintain the operations effectively,
“We strive to offer our customers the lowest possible prices, the best available
selection, and the utmost convenience.” The most important parts of mission statement of
Amazon are, lowest prices, best selection and the utmost levels of convenience (Amazon.com
2019).
The vision statement of Amazon that is able to convey the corporate vision of the
organization is,
“to be Earth’s most customer-centric company, where customers can find and
discover anything they might want to buy online.” The major attributes that are helpful in the
development of vision statement of Amazon are, global reach, customer-centric approach and
widest selection of the products (Amazon.com 2019).
Strategic capabilities of Amazon Malaysia
Customer convenience is considered to be the central part of business strategy that has
been developed by Amazon Malaysia. The firm has been able to major levels of success in
the retail industry with the support that is offered by the customer focus levels. The demands
and choices of customers have been tracked by Amazon on a regular basis the organization
has been able to offer the products within required time as well (Cândido and Santos 2015).

11STRATEGIC MANAGEMENT ANALYSIS
Amazon has also aimed at development of a competitive advantage by offering high
convenience and importance to the customers. The shopping experience that Amazon
provides to the customers is also considered to be a key aspect that has an influence on the
satisfaction levels and developed business strategy. Digital technologies and artificial
intelligence have also been considered important by Amazon in order to increase the
convenience of the consumers (Alom et al. 2016).
VRIO Framework analysis of Amazon
V- Valuable R- Rare I-Imitable O- Organization Factors
Yes Yes Moderate Yes Technology based
competitive
advantage
Yes Moderate Moderate Yes Human resources
Yes Yes No Yes Vision of the
CEO
Yes Yes Yes Yes Competitive
parity
The technologies that have been gained by Amazon.com are able to provide a
valuable competitive advantage that cannot be imitated easily by another organization.
Human resources or employees are also an important part of the position that is gained by
Amazon in technology industry. Vision that has been developed by the CEO of Amazon is
considered to be a major reason behind the success (Alom et al. 2016).
Task 4
Strategies that will be implemented by Amazon to defend the core business
The strategic vision that is developed by Amazon is mainly related to the methods by
which the firm can aim at achieving the huge goals which have been set by the analysts. The
aggressive levels of growth that have been depicted by the organization is mainly related to
the acquisitions that have been made in order to gain the capabilities of different start-ups