Strategy, Enterprise & Innovation: Amazon Web Services Report Analysis

This report provides a comprehensive analysis of Amazon Web Services (AWS), focusing on its entrepreneurial activities within the context of strategy, enterprise, and innovation. Section 1 critically examines AWS's internal resources and capabilities, highlighting management, human resources, and technology, which contribute to its competitive advantage. It also evaluates the impact of external environmental changes, including political, economic, social, technological, legal, and environmental factors, on AWS's entrepreneurial ventures, alongside the influence of competitive forces on its activities and profitability. Section 2 proposes and justifies two strategic options for AWS to increase its entrepreneurial opportunities: technology evolution and enhancing employee skills. The justification considers the suitability, acceptability, and feasibility of each strategy, drawing on Porter's Five Forces and inorganic growth models to support the recommendations. The report emphasizes the importance of innovation, skilled employees, and adapting to market demands for AWS's continued success in the cloud computing industry. The analysis includes a SWOT analysis of AWS and considers factors such as technological advancements, competition, and market dynamics.

STRATEGY, ENTERPRISE
& INNOVATION

Table of Contents
SECTION 1......................................................................................................................................1
a.) Internal resources and capabilities which provide the organisation a competitive advantage.
.....................................................................................................................................................1
b.) The key driver of changes in the external environment and evaluate their impact on the
entrepreneurial activities of the firm. 240...................................................................................2
c.) The impact of competitive force which influence entrepreneurial activities of the
organisation and profitability. 260..............................................................................................4
SECTION 2......................................................................................................................................5
a.) Two strategic options which can be pursued by Amazon Web Services to increase its
entrepreneurial opportunities in the market ...............................................................................5
b) Justifying the appropriate strategies in terms of suitability, acceptability and feasibility
criteria.........................................................................................................................................5
Justification for the selected strategic ........................................................................................5
Conclusion.......................................................................................................................................6
REFERENCE ..................................................................................................................................7

SECTION 1
Strategy, enterprise and innovation can be determined as a subject group which include
activities for engaging in research which is transferred into a 4 key that is innovation
management, business strategies, risk management. The present report is about Amazon Web
Services which has 90 services and it is continuously launching new features and functionality.
In this report companies, internal and competencies which are important sources of an
organization is critically analysed.
a.) Internal resources and capabilities which provide the organisation a competitive advantage.
In the modern era, the organisation must compete in a challenging and complex context
which is being transformed by different factors from globalisation and uncertain changes such as
growing use of information technologies. Resources and capabilities of organisation are one of
the fundamental sources of competitive advantages in context of strategic management (Davila,
Epstein and Shelton, 2012). There are different sets of activities which are performed within
Amazon Web Services. Different types of internal resources which assist the cited organisation
to accomplish the goals are as follows: Management: The main goal of company is to earn profit and it is possible if it will
continuously deliver high quality and new services. For this purpose, there are different
operations which can be performed by company to attain the objectives. Human resources: Employees are the essential part of an organisation as it helps in
making innovating products and services for customers. Amazon Web Services can easily
gain competitive advantages if they work effectively. Issues take place in am organisation
when employees are unable to fulfil the requirement of the customers.
 Technologies: There are different technologies which are provided to employees with
respect to make new products and services. In this context, it is essential for Amazon
Web Services to provide high quality services. Therefore, it is the responsibility of
company to ensure that employees can effectively use new technologies so that they can
deliver innovative services.
SWOT analysis of Amazon Web Services
STRENGTH:
1. Amazon Web Services incorporates not only
WEAKNESSES:
1. Amazon Web Services is a public cloud
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E- Commerce services but also provides many
of the other sort of Cloud based services to its
customers since 2006.
2. Apart from this, it has about 5 times of
processing capacity than its other competitors
as it has higher business investments
(Henttonen and Ritala, 2013).
business & is quite complex to use by private
customers.
2. Apart from this, its operational cost &
service area makes it profitability quite
questionable.
OPPORTUNITY:
1. Because of the technical advancements in
field of cloud computing, Amazon Web
Services has a growing market of $300 billion
a year.
2. Due to reduction in cost of file storage
services over Cloud computing, the investment
& expansion will be increased & Amazon Web
Service has an opportunity to move into own
business. Also there is a growth in products
supporting AWS.
THREATS:
1. Due to technical advancements, AWS can
face a competition on hardware pricing.
2. Many Tech giants like Google, Microsoft,
IBM entering the market giving stiff
compitition in private cloud service sector.
3. Also AWS uses RDBMS while trends going
for Nonrelational (NoSQL) ones.
4. AWS should avoid getting complacent with
other competitors.
b.) The key driver of changes in the external environment and evaluate their impact on the
entrepreneurial activities of the firm. 240
There are the different set of changes which can take place in cloud computing industry.
One of the major impacts are taking place due to less innovative services which are delivered to
company. Cloud computing distributes computing over a network’s practices. This application is
run on a large number of computers at a time remotely versus (Caiazza, Volpe and Audretsch,
2014). Changes in the social factor, political factor etc. lead to impact the organisation
performance and impact on competitive advantages. The key driver which can impact the
changes in external environment and it impacts a company are as follows:
Political factors that can effect the functioning of AWS can be:
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Change in government causing change in policies & priorities. Although this factor is
limited to operational country but due to global expansion of services even political change in
other countries can effect the smooth functioning of services.
Economical Factors:
Economical factors affecting Amazon Web Services:
1. Level of growth in an economy or the economies the services are operating plays vital
part in growth of AWS.
2. Also the condition of economy has a crucial role in growth of AWS. If the economy is
growing rapidly, the company will grow along thoroughly while if the economy of the
market or the country is going down, it will obstruct the growth of Amazon Web Services
.
Social Factors:
Social Factors affecting the growth of Amazon Web Services are the taste & requirement issues
of the people. With the passage of time, change in demographics, mobility & lifestyle, the
demands & requirements of the consumers changes.
Technological Factors:
The technological factors affecting Amazon Web Services are:
1. Overall change in the technology affecting complete Cloud Computing industries.
2. Specific change in a technology affecting a particular section or part of the Cloud
Computing services.
Legal Factors:
It includes the complete introduction of new laws & policies as a modification over the present
laws. Although it includes the changes of the national government but are affected by the global
spectrum also.
Environmental Factors:
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Amazon Web Services has to look after the environmental factors too as nowadays people are
getting concerned about the environment depletion factors like green issues deforestation,
growing pollution etc while manufacturing or packaging of service or product by the company.
c.) The impact of competitive force which influence entrepreneurial activities of the organisation
and profitability. 260
If there are many competitions in the market of the particular industry then that industry
will certainly grow at a very rapid phase as that competition make the industry more and more
progressive. Without any competition the Amazon web services will not be able to grow and
work in the market competition in every industry makes them powerful. But they must ensure
that there is a healthy competition in the market and competition should not become rivalry.
 Developing self awareness- all the competition which is tough in the market generate the
sense of self awareness and thus develop the Amazon web services to grow faster which
will help the economy as well.
 Encouraging differentiation- all sort of differences are encouraged in the competition
so that every Amazon web services can grow and expand in the nation. As every
company in industries are having different quality of products and they sell those
products (Henttonen and Ritala, 2013).
 Mutual learning- if they watch the competition on a very close bases then they can gain
knowledge and resources are shared between them. And then they can learn how to apply
that knowledge in their own business.
Accomplishing a competitive advantage is one of the important aspects of organisation.
Technology evolution leads to impact the level of maturity which highly impact the number of
entrepreneurial opportunities. There are many advanced technologies introduced in the market
which are needed to be implemented within organisation so that the cited organisation can make
products and services accordingly.
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SECTION 2
a.) Two strategic options which can be pursued by Amazon Web Services to increase its
entrepreneurial opportunities in the market
There are different types of strategic options which can be considered by Amazon Web
Services with respect to accomplish the goals and objectives. In this context, the strategic choices
are as follows:Technology evolution: There are many organizations that serve quality services at
the reasonable price. Therefore, it is important for the firm to ensure that make product and
services with the use of advanced technologies. It helps in gaining the competitive advantages.
There are different types of mobile services which the Amazon web services can innovate
according to needs and demands of customers such as push notification app and build the high
quality app quickly and easily as it helps a company in increasing the opportunities in the
market. This strategy is selected from the porters five force generic strategies. The improvement
in the technology helps the organisation in particular virtualization which has contributed greatly
to the advent of cloud computing.
To enhance the skills of employees: There are different types of operations which take
place within organisation. It is important for company to develop the skills and knowledge of
employees so that they can make innovative products and services for the customers (Klingebiel
and Rammer, 2014). At Amazon Web Services, all technological operations were carried out,
therefore, it is important for company to ensure that all its employees are highly skilled and well
trained. This strategic choice is taken from the inorganic growth strategy. In this, management
aims to develop the customer base and this can only be done with the help of skilled employees.
b) Justifying the appropriate strategies in terms of suitability, acceptability and feasibility
criteriaJustification for the selected strategic Suitability: The first strategy is suitable for company as it helps in grabbing attention of a
large number of customers. All the services which are provided by the cited organisation
should be different from other companies. Along with this, if organisation provides
innovative services with the reasonable price then it attracts a large number of customers. Acceptability: Main aim of the cited organisation is to maximise its profit and it can be
possible when it can retain a large number of clients (Kodama and Shibata, 2014).
Therefore, through implementing this strategy, it becomes easy to accomplish the stated
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objectives. Further, it is essential for company to make its operations effective so that it
can easily reduce its money and ensure that services are delivered at a reasonable price.
 Feasibility: To sell, the price at the reasonable price for this purpose company need to
make strong relation with the supplier so that it can easily get the material at the lower
price. Further proper interaction is needed with the government so that if any changes
take place in policies then company do not get impact from it.
Consideration for the selected strategic choice that is porter’s five force generic model in
terms of suitability, acceptability, feasibility criteria is as follows:
 Suitability: Employees play a significant role within organisation as they directly interact
with customers. It makes them capable enough to understand the requirement of
customers. Therefore, they can easily modify the products and services accordingly.
 Acceptability: There are many business operation of Amazon web services in all over the
country. Employees give their best effort for attaining the aims and objectives. The
growth and revenue of the company is depended on the types of raise in customers make
use of services and compare it with other company.
 Feasibility: The organisation can provide its employees training and development
facilities so that they can work effectively (Lusch and Nambisan, 2015). Further It is
effective at the time when management identified the issues or problems that are faced by
the company. It is also helpful in improving the performance of the employees which
lead to increase the productivity.
Conclusion
From the above report it is concluded that for gaining the competitive advantage it is
important to analyse both internal and external factors. Further, company can make changes in its
strategies after analysing the business environment as it will help in achieving the success.
Further it is concluded that if company identified its weakness then it can overcome it with the
use of strategies.
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REFERENCE
Books and Journals
Caiazza, R., Volpe, T. and Audretsch, D., 2014. Innovation in agro-food chain: Policies, actors
and activities. Journal of Enterprising Communities: People and Places in the Global
Economy. 8(3). pp.180-187.
Davila, T., Epstein, M. and Shelton, R., 2012. Making innovation work: How to manage it,
measure it, and profit from it. FT press.
Foxall, G., 2014. Corporate Innovation (RLE Marketing): Marketing and Strategy. Routledge.
Henttonen, K. and Ritala, P., 2013. Search Far And Deep: Focus Of Open Search Strategy As
Driver Of Firm'S Innovation Performance. International Journal of Innovation
Management. 17(03). p.1340007.
Johnston, R. E. and Bate, J. D., 2013. The power of strategy innovation: a new way of linking
creativity and strategic planning to discover great business opportunities. AMACOM
Div American Mgmt Assn.
Kim, N., Min, S. and Chaiy, S., 2015. Why Do Firms Enter a New Product Market? A Two‐
Dimensional Framework for Market Entry Motivation and Behavior. Journal of Product
Innovation Management. 32(2). pp.263-278.
Klingebiel, R. and Rammer, C., 2014. Resource allocation strategy for innovation portfolio
management. Strategic Management Journal. 35(2). pp.246-268.
Kodama, M. and Shibata, T., 2014. Strategy transformation through strategic innovation
capability–a case study of Fanuc. R&D Management. 44(1). pp.75-103.
Lusch, R. F. and Nambisan, S., 2015. Service Innovation: A Service-Dominant Logic
Perspective. Mis Quarterly. 39(1). pp.155-175.
Ma, D., 2013. Innovation strategy and leadership dynamics in a technology-intensive industry:
evidence from South Korea. International Journal of Technological Learning, Innovation
and Development. 6(3). pp.209-224.
Markides, C. and Sosa, L., 2013. Pioneering and first mover advantages: the importance of
business models. Long Range Planning. 46(4). pp.325-334.
Rothaermel, F. T., 2015. Strategic management. McGraw-Hill.
Shan, F., 2016. Enterprise innovation with data mining method based on naive bayes model
algorithm. Metallurgical and mining industry. (1). pp.148-153.
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Suarez, F. F., Grodal, S. and Gotsopoulos, A., 2015. Perfect timing? Dominant category,
dominant design, and the window of opportunity for firm entry. Strategic Management
Journal. 36(3). pp.437-448.
Weerawardena, J. and Mort, G. S., 2012. Competitive strategy in socially entrepreneurial
nonprofit organizations: Innovation and differentiation. Journal of Public Policy &
Marketing. 31(1). pp.91-101.
Online
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