Amazon's Strategic Management: Growth, Innovation, and Market Reach

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Added on  2024/06/03

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This report provides a comprehensive analysis of Amazon's strategic management, exploring its business model, growth strategies, and market opportunities. Starting as an online bookstore, Amazon has diversified into a global online retailer, leveraging technology and economies of scale. The report details Amazon's timeline, revenue model, technology issues, innovation, product offerings, target markets, financials, competitors, and business partners. It also examines Amazon's value chain and its strategy for Australia. The analysis includes recommendations for future growth, focusing on mobile commerce and maintaining market leadership. The report highlights Amazon's customer-centric approach, low-cost strategy, and continuous innovation as key factors in its success.
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Strategic Management
Amazon’s strategy
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Table of Contents
Introduction.................................................................................................................................................4
Overview of Amazon...................................................................................................................................5
What was the market opportunity..........................................................................................................6
Describe Amazon's business strategy?....................................................................................................7
Timeline of Amazon.................................................................................................................................9
Revenue model......................................................................................................................................16
Technology issues..................................................................................................................................18
Innovation.............................................................................................................................................19
Product offering.....................................................................................................................................20
Target markets......................................................................................................................................21
Financials...............................................................................................................................................22
Competitors...........................................................................................................................................24
Business partners..................................................................................................................................25
Describe the value chain?......................................................................................................................26
What is Amazon's strategy for Australia?..............................................................................................27
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Conclusion.................................................................................................................................................28
Recommendations.....................................................................................................................................29
References.................................................................................................................................................30
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INTRODUCTION
Amazon company is considered as one of the world's largest retailer company and engaged in the online
retailer space. the company started its business from an online bookstore and become successful in
short period of time and now it diversifies in selling every item through online stores. Furthermore, the
company is expended at the internal level an operated its operations in all over the world through make
relation with the localised portals, logistic platform and globalised delivery. the way in which Amazon
company is performing its operations has leveraged the modern technology and the different sources
that provide a competitive advantage and enable various benefits of the economics of scale. addition
with that it makes the connection between the external and internal resources that develop a better
and successful business model. Apart from this, the main aim of the study is to analyse the strategies of
Amazon company with developing an effective recommendation and the supplementary of the core
competencies. Other than that the study also recommends the target area in which mobile commerce
segment can grow and maintain its market leadership position.
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OVERVIEW OF AMAZON
Amazon company begins its operations by selling the book from the online medium but now it becomes
the biggest online store that sells everything from online medium. The website offers millions of
products and services that may include books, home furnishing, clothes, pet supplies, office products,
and other items that can be delivered on the same day. the company is also providing the dominant
cloud services. other than it is also known for the entrainment company that displays the various video
operations and in 2017 it was nominated for the Oscar (Vault, 2018). It is a force that is reckoned with
the process products but now it is supplying natural food chain and having a leader in digital personal
assistant devices and echo product line.
[Source: Amazon, 2018]
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What was the market opportunity
The strategy that is adopted by the Amazon company is very simple and faster and attract more and
more customers. it increases customers, more revenue and profit of the company. the company was
having the opportunity to increase the business in all over the world and the company uses this strategy
and now it becomes its strength. In 1994 the Bezos incorporated its company with the name of Cadbury
but later on, it changed the name to Amazon. He was planned to develop the biggest store in all over
the world. The company became successful and start selling other items now it become the biggest
online shopping company in all over the world. The company uses the artificial intelligence that helps in
collecting the data and also improves the system of the company. the information that is used by the
company help in enhancing the experience of the customers (Mitra, et. al., 2015).
The company grabbed the opportunities which helped it become successful in few years and that's why
it becomes the biggest online retailer company in all over the world.
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Describe Amazon's business strategy?
The Amazon main vision is to focus on providing the better customer experience through offering the
products and services at the low prices, convenience and the chosen of the merchandise. the company
adopt the strategy to communicate both on-site and offline communicators. It is important to
accomplishing the loyalty of the customers and retain the customers. the company is accomplishing
both the awareness and success. the main reason of successful strategy is repeating purchase of
customers through providing the easy to use functionality, reliable and fast fulfilment, reach in content,
trusted transaction environment and timely customer services (Porro, et. al., 2015).
the main key feature of the company is one-click technology, upload of images, secure payment system,
ability to selected the interior pages and citations, searching o the entire contents of book, internet and
browsing. the community of the company involve in creating the feature that is rich in content that may
include the online recommendation list, wish list., buying guides, product and reviews and so on.
Other than that the successful strategy of the company is to provide the products and services at a very
low cost and less popular products that command a very high price are having the greater margin for the
Amazon. Free shipping also increases the basket size of the people because customers start purchasing
the product due to the free shipping services. the level of free shipping is set the profitability for the
company that changes the competition and promotional reasons.
Amazon communicates the fulfilment of promises of delivery date estimates, options for expedited
delivery, delivery shipment notification, update facilitates and latest inventory availability information.
the company need to focus on the customer satisfaction metrics that monitor the availability of the
standard service monitoring (Antoun, et. al., 2016). Besides this, the company focuses on the matrices of
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customer satisfaction. the every site of the company focuses on providing the customer services through
providing availability of site, monitoring and download speed.
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Timeline of Amazon
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