Amazon.com, Inc.: Strategic Management Analysis & Recommendations

This report provides a strategic management analysis of Amazon.com, Inc., examining its business strategies, future objectives, and sustainability efforts. It employs models such as the SAF model, Porter’s Value Chain analysis, and Mendelow’s Power Interest Grid to evaluate the company's strategic position. The report discusses the suitability, acceptability, and feasibility of Amazon's strategies, considering factors like brand equity, market expansion, stakeholder impact, and risk management. It also addresses resource requirements, including financial, physical, and technological aspects, and proposes initiatives to enhance the project's environmental and social acceptability. The analysis concludes with recommendations focused on expanding into developing markets, improving tax policies and sustainability practices, implementing technological innovations, and revising existing strategies to maintain a competitive edge. References to various strategic management resources are included to support the analysis and recommendations.

Strategic Management
Amazon.com.Inc

Executive summary
This presentation is about the strategic management model of
Amazon.com.Inc, one of the leading online retailers in the world. In the
course of the presentation the researcher have discussed the business
strategy of this company in respect of the set future objectives. Several
models are been used for this analysis like- SAF model, Porter’s Value
chain analysis and Mendelow’s Power Interest grid. Resources and
sustainability aspects have also been explained in this presentation.
Finally this presentation included conclusive section with
recommendations drawn from the discussion.

Table of Contents
Suitability
Acceptability
Feasibility
Porter’s Value chain
Mendelow’s Power Interest Grid
Resources required
Making project greener and socially acceptable
Conclusions and Recommendations
References

Suitability
• Amazon’s brand equity would help in market
expansion
• Controversies harm company reputation and
customers trust. Working on reducing controversies
will increase the profit game
• Developing countries have better scope of
marketing
• As an online retailer cybercrimes affects the
business immensely
• Strategies involving abovementioned criteria will
increase revenue for Amazon

Acceptability
• Amazon stakeholders have been affected
negatively after the tax controversy
• Developing the strategy to manage the tax will
benefit the stakeholders
• There are some risk in investing in new countries.
That could be avoided with proper market
research
• Working on controlling the cyber threats will
increase the working speed and effectiveness of
the company
• Entering new markets will increase business
prospect and profits

Feasibility
• Amazon has a well-equipped supply chain to exercise any kind of change in its structure and work
strategy.
• The company has used AI and other technologies regularly, therefore, it can develop its own
effective online security system
• Management policies of this company is consumer centric which will help it gaining advantage in
new markets
• For promotional aspects the company could use its existing brand identity and enhance the strategy
• Amazon has ample number of investors to put money in their new endeavours

Porter’s Value chain
Primary
activities
Inbound Logistics Operations Outbound
Logistics
Marketing and
Sales
Service
Custom
er value
 Integrated suppliers
 Quality control
 Decentralised
warehouse centres to
route the items in
various locations
 AI- software
 Content and devise
creation ability
 Market operations
 Invoicing
 Order handling and
delivery
 Order fulfilment
 Most customer
centric services
 Highest revenue in
online retailing
 Advanced
promotions
 Strategic
segmentation
 Training and
information
sharing
 Marketplace
support
Support
Activities
Legal, Finance and HR: risk mitigation plans, talented people as employees, sustainable cash flow operations
Technology: customer data base development, use of AI for delivery, advanced IT team for operation control
Procurement: huge product variety, large number of integrated suppliers

Keep Satisfied
Finance team
Networking and security team
Legal team
Manage Closely and Actively involve
CEO
Manager
Project Managers
Project developers
Minimal effort
Customer care call centre staff
Customers
Keep Informed
Outsourcing managers
Training manager
Shareholders
Power
Interest
Mendelow’s Power Interest Grid

Resources required
• Financial: expanses for promotion and
advertising, recruitment of employees,
controlling cyber hazards
• Physical: store houses, warehouses, tools
and machineries for manufacturing and
supplying
• Technology: software for restricting
malwares, intellectual property,
accumulated skills and experience

Making project greener and
socially acceptable
• Using environment friendly packaging
• Reducing packaging wastes
• Reducing the number of fast shipping to its
customers
• Controlling the carbon emission in delivery
systems (aboutamazon.com 2019)

Conclusions and
Recommendations• Amazon has the capability to expand its business in unexplored markets of
developing countries
• Amazon has to work in its tax policies and sustainability issues
• Implementing more technological innovations in operations
• Revising the existing strategies as they are now easily imitable
• Developing partnerships could reduce market entry hazards

References
• Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R.,
2018. Implanting strategic management. Springer.
• aboutamazon.com, (2019), aboutamazon, available at:
https://www.aboutamazon.com/
• Chereau, P. and Meschi, P.X., 2018. Defining Strategic Positioning. In
Strategic Consulting (pp. 39-79). Palgrave Macmillan, Cham.
• Elsaid, A., Salem, R. and Abdul-Kader, H., 2017. Research Article A
Dynamic Stakeholder Classification and Prioritization Based on Hybrid
Rough-fuzzy Method.