MBA Strategic Management: Amazon's Strategic Analysis & Implementation

This presentation provides a strategic analysis of Amazon, focusing on its strategic direction, competitive position, vision, mission, and strategic capabilities. It evaluates Amazon's strategic decisions over the past five years, including investments in robotics, drones, Alexa, Amazon Go, cloud technology, and online entertainment. The presentation employs frameworks like PESTEL and value chain analysis to assess Amazon's external environment and internal strengths. It discusses Amazon's expansion strategies, particularly its "GLOCAL" approach, and strategies for defending its core business activities through excellent customer service and a user-friendly website. The presentation concludes by examining resource implications and offering recommendations for aligning employee efforts with organizational goals. The presentation is based on the MBA module SBLC7011.

Strategic
Managemen
t

Aim of this
Presentation
●Introduction
●Task 1
●Task 2
●Task 3
●Task 4
●Task 5
●Conclusion
●References
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Hello!
Strategic management is the most
crucial and essential function for
business organizations in terms of
attaining desired goals and
objectives
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Introduction

“Strategic management includes
framing of strategies for the
business for the purpose of
attainment of future goals as well
as evaluating the effectiveness of
current strategies to align the
efforts of the employees with the
future goals and objectives.
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Background
● Amazon is a giant e-commerce company
with its headquarters in Seattle,
Washington.
● The company was founded in 1994 by
Jeff Bezos and since then, organization
has acquired the leading position as the
largest internet retailer in the world
measured in terms of market
capitalisation and revenue (Amazon Inc.,
2018).
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to be continued…
● This presentation will include:
● Evaluation of Amazon’s strategic decision
in last five years
● Company’s competitive position
● Mission and vision
● Strategic capabilities
● Strategies for defending core business
activities
● Recommendations
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● Initially, Amazon.com was
just an online bookstore
which later on becomes
the number one online
retailer across the globe.
● Amazon has made
investments in following
sectors in last five years:
Task 1: Strategic
Direction
● Robotics
● Drones
● Alexa (virtual assistant)
● “Alexa Everywhere”
Strategy
● Amazon Go
● Cloud Technology
● Prime Video and Prime
Music (online
entertainment)
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Alexa
Everywhere
Strategy
● Amazon Everywhere” was
introduced in 2017 which
surprisingly became the huge
success for the organization despite
the presence of other top personal
assistants in the market .
● Amazon launched Alexa in 2014 in
smart speakers as Echo and this
made the organization to stand with
its primary competitors in the
artificial assistant market.
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● Frameworks for strategic
analysis used by Amazon:
● PESTEL Analysis in order to
analysis the impact of
external factors on
organizational performance
● Value chain in order to
analyse internal strengths
of the organization to fulfil
target customers’ demands
and wants
Task 2: Detailed
Analysis
● Competitors of Amazon:
● Netflix, iTunes, Time Warner
Cable, eBay, etc. in media
segment.
● Best Buy, Staples, Target,
Walmart, etc. in electronics and
other merchandise segment.
● Alibaba Group, Overstock.com,
Vipshop Holdings and DW, PC
Connection, Oracle, Insight
Enterprises, etc. in e-commerce
and in other segments.
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● Amazon’s vision is “to be the
earth’s most customer centric
company” and with regards to
this, management monitor
organizational performance at
all locations to analyse whether
organization is moving in right
direction or not.
● In relation to this, Jeff Bezos
and his team always try to
upgrade its products and
services in relevance with the
fulfilment of their target and
potential customers’ demands
Task 3: Vision and
Mission ● Strategic capabilities:
● Amazon’s strategic capabilities
stands on the three pillars i.e.
price, selection and convince and
these elements are used by
Amazon for the motive of
fulfilling their customers’
demands and wants.
● Porter’s Generic strategies are
used for gaining competitive
advantage.
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● In the global market,
Amazon’s strategies are
considered as the most
effective and result oriented.
● Primary strategy used by
Amazon for expanding their
business in the international
market is “GLOCAL” which
describes “go global think
local”.
Expansion and
market entry
strategies
● As a result, organization is
currently operating in more
than 188 countries in the
globe with separate retain
websites for countries like
United States, India, United
Kingdom, China, Japan,
Turkey, etc.
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