Creativity and Innovation Strategies of Amazon: A Detailed Report

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This report provides a comprehensive analysis of Amazon's creativity and innovation strategies. It begins with an introduction that highlights the importance of creativity and innovation in business success, particularly for a company like Amazon. The main body delves into the relationship between creativity and innovation, exploring different categories and types of innovation, with a specific focus on those adopted by Amazon. The report then critically evaluates Amazon's innovative strategy using SWOT and STEEPLE analyses, providing a detailed understanding of its strengths, weaknesses, opportunities, and threats, as well as the social, technological, economic, environmental, political, and legal factors impacting the company. Furthermore, the report examines the creative strategy process implemented by Amazon and discusses the complexities of integrating creativity and innovation into an existing business culture. It also considers the importance of fostering creativity and innovation within the workplace by reflecting on businesses that have failed to adopt a creative approach. Finally, the report offers recommendations to ensure Amazon's continued success and concludes with a summary of the key findings and insights. This report is contributed by a student to be published on Desklib, a platform providing AI-based study tools.
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Creativity and Innovation
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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Relationship between creativity and innovation.........................................................................1
Different categories and types of innovation and identify category and type of innovation
adopted by Amazon.....................................................................................................................2
Critically evaluate Amazon's choice of innovative strategy with SWOT and STEEPLE
analysis........................................................................................................................................4
Creative strategy process and discuss creativity strategy implemented by Amazon..................7
Critically analysis the complexities of implementing creativity and innovation into existing
business culture ..........................................................................................................................8
Critically examine importance of fostering creativity and innovation within the workplace by
reflecting on business that has failed to adopt creative approach to make innovation...............8
Recommendations to ensure continued success of Amazon.....................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Creativity and innovation play very important role in business success. This is because,
creativity is required in the organisation to solve issues and problems that has arisen to find
suitable solution. Entrepreneurs in the business implement rules that are established for propel
innovation forward and increase competitive edge (Melo, Braga and Pinheiro, 2018).
Present study based on Amazon which is the largest online retailer company which
provides different types of products such electronic, clothing, grocery, etc. This enterprise
successfully established different kinds of goods to produce desired results.
For gaining insight information of the present study, it includes relationship between
creativity and innovation. Furthermore, it considered different categories and type of innovation
which adopted by Amazon. Moreover, it critically analysis Amazon's innovative choice of
strategy which would be beneficial to attain more growth at workplace. Furthermore, SWOT and
STEEPLE tools ascertained to foster creativeness and innovation in business environment.
MAIN BODY
Relationship between creativity and innovation
Creativity defined as the ability of a particular person who provide their views and ideas
as solution and possibilities in unique way. Hence, in Amazon it can be determines as ability to
perform functions that is unpredictable, original and unique. On the other hand, innovation
consider with ideas and opinion that creates value for business enterprise, to ascertained better
work at workplace. Better and smarter way for doing something is innovation. For instance,
Amazon using new technology, product segment, production method, improvement in existing
products, etc. In this regard, it can be stated that relationship successfully develop to maintain
innovative results with creativeness because these aspects depends on each other to gain more
success in the enterprise. Without effective process, creative ideas cannot be transform into
practical and real world (Thornhill-Miller and Dupont, 2016). This is because, value added
application never successfully developed with innovation process.
Furthermore, it can be stated that without imagination of creative ideas there is no
productive outcomes gain successfully to develop positive results in Amazon. Therefore,
creativity is imaginative which considered imaginations and possibilities in successful way. It
impacts positively to attain productive process because it successfully ascertained for something
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new and effective to develop market. In the chosen business, innovation is closely tied with
creativity so that it helps to put creative ideas into action to perform several functions in
systematic manner. Moreover, process also successfully develop to take more time and
ascertained is not done previously by an entity. In the business, changes can be made to bring
competitive edge to develop performances and productivity (Melo, Braga and Pinheiro, 2018).
However, in the business conflicts occurred regarding more advance work that would be
beneficial to create innovation for the enterprise to last longer. In order to gain positive outcomes
successfully existence lead to gain more success. Development of ideas and widening areas
successfully develop that helps to take risks and experimenting through observing things.
Different categories and types of innovation and identify category and type of innovation
adopted by Amazon
Innovation has implemented to develop significant advantages and seem with
incredibility. There are different ways that are used by company to innovate something new.
Following are different categories of innovation considered successfully in the businesses: Product innovation: This category of innovation come in three different forms. For
instance, Amazon determines their new product as Amazon's Kindle, enhancement in
existing products, adding new feature in the products, etc. Drivers of product innovation
helps in technological advancement which includes innovative product as per design &
customers requirements (Litchfield, Ford and Gentry, 2015). Process innovation: In respect to successfully develop innovation, it can be stated that
least consideration which include different aspects work together which includes
facilities, skills and technologies. Therefore, it is used to produce with innovation &
deliver with support which can be successfully develop in broad categories. There are
several ways that can be successfully process in innovation to improve desired results.
Process innovation helps to include several changes in equipment and technology which
includes different programs that helps to design and develop products to make
improvement in solution to deliver system which would be helpful to determine
successful results and outcomes (Litchfield, Ford and Gentry, 2015). Product innovation
is also visible for customers so that changes in process typically seen with valued
internally.
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Business model innovation: This category of innovation is the most challenging one
because it will assist to present a firm with major aspects for change. Business model
innovation not necessarily imply in the products of production process. Therefore, it is
the successful way which is most challenging and present to make several changes.
Capabilities or processes have been optimised to make company successful and profitable
(Roth, Schneckenberg and Tsai, 2015). Target for consideration of transformation also
assists to develop to make several changes that can be threaten for the company identity.
In different categories of innovation can be done in systematic manner.
Types of innovation
In order to considered successful innovation, it can be stated that different types of
innovation has been made in the business. Hence, following are different types of innovation
involved in different dimension off market and technology: Incremental innovation: It is most common kind of innovation can be successfully
implemented at workplace. It utilises existing technology and that enhance value towards
the customers such as implementation of new aspects of the products and services such as
design, features, etc. Examples includes adding new features in products and services
(Roth, Schneckenberg and Tsai, 2015). Replacement of this aspect is considered with
email campaign and updated version of products and services. Therefore, it helps to make
easier for user to see which campaign schedule setting. Disruptive innovation: In order to gain more innovation, it can be stated that stealth
activities successfully placed to focus on desired level of results. It involves applying new
technology and processes in the company's current market. In existing market
technology, newer aspect determines different features that are very hard to use. It is also
effective to established systematic program at workplace. Established companies also too
quickly compete with latest and newer technology (Arvidsson and Niessen, 2015). There
are quite few examples regarding disruptive innovation such as Apple's iPhone. Architectural innovation: With the help of innovation, it can be stated that appropriate
amount of skills ascertained which would be beneficial for overall technology. This
innovation is more amazing at increasing new customers in new marketplace. Most of the
time, risk are also involved with reliance and reintroduction of proven technology.
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Originally, it was commercially marketed as medical equipment, table pads, sports
equipments, etc.
Radical innovation: Radical innovation is considered for several innovative aspects. It
occurs when a new entry entirely disrupts an industry or business. It provides birth to new
industries that ascertained with creating revolutionary changes. With this consideration, it
can be stated that commercialisation also successfully develop and prosper to make
desired level of results at workplace. There are several ways to innovate successful
functioning (Zaccaro, Fletcher and DeChurch, 2017). Hence, success is based on turning
more to gather relevant information and outcomes.
Amazon is using product innovation that considered introducing new product in the
market that is Amazon Kindle. Furthermore, incremental innovation successfully develop in the
business that helps to develop significant advantages with adding new features in products and
services.
Critically evaluate Amazon's choice of innovative strategy with SWOT and STEEPLE analysis
Amazon is the world's largest online retailer which successfully established operations
and functions which would be beneficial to attain overall creative advantages. It is also referred
as equivalent of global footprint with its aggressive pricing strategies. In order to consider
innovative strategy of Amazon, it can be stated that following SWOT and STEEPLE analysis
includes in it:
SWOT analysis
Strength
As an online retailer, it can be stated that Amazon operating to gain primary objective to
ascertained desired level of outcomes. This strategy also resulted for company reaping to
gain course of action to create value from the business.
As critically evaluate, Amazon primarily also considered competitive advantages from
leveraging IT. It is also used in e-commerce as scalable to ensure that company is well
performing as compare to its competitors (Roth, Schneckenberg and Tsai, 2015). There is one of the key strength of Amazon is that they enjoy top of mind recall from
their customers in global market. This recognised and helped to enter in new areas which
successfully develop positive results for much e-commerce enterprise.
Weaknesses
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In recent time, Amazon is an important part of its diversification strategy which spread
itself to focus on core competence. They are mainly considered competence for books
online which allow to successfully focus on new areas.
As critically evaluate, the chosen business mainly providing products on free shipping so
that it is danger to losing its margin to optimise cost because of this strategy (Gilson and
Litchfield, 2017).
Consideration of fact also successfully develop as online market that focuses on single
mind focus on online retailing to expand plans in emerging market.
STEEPLE analysis
STEEPLE analysis is strategic analytical tool that considered different acronym that are
stand for different aspects of macro environment analysis: Social factors: Social conditions of the country is determines as increasing in
performance that leading as online retailer. This aspect of model assists to identify impact
of sociocultural changes and trends in the firm in different consideration. Therefore, there
are several aspects create impact on Amazon such as increasing wealth disparity,
increasing consumerism in developing market and development of online buying habits
(Kerr, Birdnow and Claiborn, 2017). Technological factors: Advancement in technology helps to directly effect Amazon
which considered as the centrality of its e-commerce business. Consequences of
technologies also related with the latest trends on remote that covered for more growth
and profitability. Hence, it includes rapid technological obsolescence, increasing in IT
efficiency and development of cybercrime (Gilson and Litchfield, 2017). Economic factors: There is whole host economic factors which create impact on Amazon
in term of taxation & inflation rates, overall industry economic growth, unemployment
level of changes in currency exchange rates that directly impact on volume of revenue
and growth of the company (Litchfield, Ford and Gentry, 2015). Hence, it can be stated
that net sales of the firm is accounted in currency exchange risks to a great extent.
Furthermore, cost of labour is another important element that affect to e-commerce to
operate in different areas of the world. In addition to this, increasing cost of labour is
directly implication to long term growth of the enterprise.
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Environmental factors: Environmental factors are also creating impact on outcomes of
Amazon which is mainly impact as online retail business. Its operations are subject that
impact on conditions of the natural environment. This aspect also represent how the
company's relate with ecological changes (Arvidsson and Niessen, 2015). Hence, it is
considered several elements that create impact on business. For instance, rising interest in
environmental program, increasing emphasis on business sustainability and increasing
popularity of low carbon lifestyle. Political factors: In the market, there are different range of political factors affect
Amazon which include not limited to the political stability or instability in the country. It
influences home market lobbying and pressure among government towards e-commerce
and retail industry. Hence, freedom of press, trade union and activities extent in
corruption that considered list of political factors (Zaccaro, Fletcher and DeChurch,
2017). Legal factors: Within Amazon's e-commerce operations must adhere to legal
requirements. The effects of regulations seen as a result of societal demand on the
business. This external factor creates several opportunities which making more efforts to
reduce counterfeit sale on its online retail website. Hence, the chosen business can easily
import and export regulations. It will assist to increase opportunities to strengthen in its
brand image (Roth, Schneckenberg and Tsai, 2015). Ethical factors: Ethical elements create positive impact on Amazon to considered
different kinds of opportunities that are available in front of them. This is because, the
chosen business need to follow ethical rules and regulations that create advantages with
stronger competitive edge (Chen and Hou, 2016). It helps to deal with aggressive
competition with large retail business.
Opportunities
For Amazon, there are several opportunities helps to expand its market with more
profitability. In this consideration, it can be stated that online payment system is an
opportunity to scale up considerable that concern for online shopping to maintain
effectiveness to focus on appropriate concerned among several issues in consumer mind
(Arvidsson and Niessen, 2015).
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As critically evaluate, another opportunity for Amazon is capitalised on which relate for
to develop more products and services with its brand to successfully lead with desired
level of outcomes. In addition to this, it can be stated that with increasing number of
products that are sold by the company (Zaccaro, Fletcher and DeChurch, 2017). The chosen business can also increase portfolio in its offers towards more products that
are currently places with position of strength and comfort to translate higher revenues.
Threats
Online shopping is one of the major threat in front of Amazon because there are several
concerns increasing which impact negative and identify theft and hacking towards
consumer data exposed. Hence, the chosen business need to move quickly for consumer
concern that online privacy and security are guaranteed (SWOT Analysis of Amazon,
2019).
As critically evaluate, aggressive pricing strategies also create major threat due to rival in
the business. Hence, leadership is one of the important aspect so that cost is also major
threat in front of the selected enterprise.
At last, it can be stated that Amazon facing more competition from local online retailers.
Therefore, it creates impact on the outcomes to pursue global strategy (Kerr, Birdnow
and Claiborn, 2017).
Creative strategy process and discuss creativity strategy implemented by Amazon
Amazon considered different types of business operations and functions to implement
digital strategy. In this regard, from start-ups and small enterprises to large can focus on
customer, testing market opportunities that are made to focus on improvement in positive results.
In respect to this, the chosen business focuses on revenue model and culture of metrics which
helps to implement the latest business results (Melo, Braga and Pinheiro, 2018). From digital
marketing, customer communication successfully develop with following consideration: Reach: Amazon's initial business growth based on detailed approach which allow with
SEO and AdWords targeting a million of keywords. Act: Creating clear and simple experience with consideration of testing and learning is an
act that would be beneficial to focus on marketing planning (Paulus and Kenworthy,
2017).
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Convert: Using personalisation to make more and relevant recommendations helps to
process many things in effective manner. Clear checkout process considered in this
regard which would be beneficial for Amazon.
Engage: Focus of the selected business on their customer experience can be build
consistently with their own internal experimentation platform of Amazon. As a result, it
helps to evaluate improvements with evaluation of growth (Thornhill-Miller and Dupont,
2016).
Critically analysis the complexities of implementing creativity and innovation into existing
business culture
In day to day business operations, creativity and innovation can be successfully develop
that helps to produce positive business culture. In the challenging environment, it can be stated
that challenges to economic, social and political development are complex so that it id
unpredictable for existing business culture of Amazon. There are various ways in which
intervention face complexity which is suitable for planning approach. There are several areas
assists to define complexity in economic, social and political development (Arvidsson and
Niessen, 2015). With the help of problem solving focused definition, there are several
characteristics exists in type of challenges that pose for design and implementation of
development interventions. Hence, following are certain section describe which create
complexity in front of the business:
The level of uncertainty involved in Amazon.
The extent of agreement about project goals and ways to accomplish them.
The extent where knowledge and capacities are successfully distributed.
Key capabilities of creativity strategy in the selected enterprise.
Catalysts of these capabilities among individuals and groups.
Catalytic conditions that are scaled and applied for the whole business (Valaei and
Rezaei, 2017).
Critically examine importance of fostering creativity and innovation within the workplace by
reflecting on business that has failed to adopt creative approach to make innovation
In the business, creativeness is one of the important consideration which create unique
things at workplace. Therefore, these elements are implemented to make solution, new idea,
process and product. Creativity is the driving force which would be beneficial to look for
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different perspectives. In order to successful implementation of creativity and innovation, it can
be stated that technology advancement produced to promote products and services through
operating in different areas of the world. As a result, it helps to deal with changing human lives
and improvement varied endeavours (Roth, Schneckenberg and Tsai, 2015). Impact of these
technological innovations develop successful results in communication term. More
improvements in the business helps to make high growth that ascertained with creative
advantages and increase more growth. With the help of development, time and space, there are
no barriers occur so that concept of distance learning revolutionised with e-learning. People also
use wide range of program from Amazon. Communication technology also provide learning
opportunities beyond time and place constraints (Gilson and Litchfield, 2017). As a result, it
creates impact on technological advancement with several attributes. Appropriate transformation
technology of Amazon also support day to day activities because of creativity and innovation.
Following are certain importance of fostering creativity and innovation to make big changes in
the business: Reward creativity: Not each idea will get success so that it is essential for Amazon to
foster creativity and innovation with reward creativity. It helps to make big break through
company play very safe (Bouncken, Brem and Kraus, 2016). However, I had seen that the
chosen business not support this creativity so that individual not inspire to pursue
untested concepts. Hire the right people: Furthermore, high the right people is another importance of
fostering creativity and innovation. This is because, the chosen business not focus on
diversity to bring variety of viewpoint, cultural backgrounds and skill sets. In Amazon,
fostering creativity and innovation can be successfully implemented for problem solving
to work and understand relationship with each individual customer (Goller and Bessant,
2017). However, they failed to adopt this strategy because overall creativeness of the
project requires building of innovation team within the organisation. Positive approach: In addition to this, it can be stated that creative brain storming is also
useful technique that can be used to encourage colleagues and build their peers through
agreeing and adding more in discussion (Kerr, Birdnow and Claiborn, 2017). In this
aspect, Amazon need to ensures that all ideas are heard. As a result, employees are test
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this approach with putting certain important use of cased when it is possible. Activity
might be silly that helps to inspire creativity.
Implement flexible working hours: Furthermore, with respect to considered creativity at
workplace, it is essential to look upon flexible working hours (Rietzschel, Zacher and
Stroebe, 2016). In this regard, Amazon can build successful team with offering flexible
arrangements to perform several works and make people healthier, happier and more
productive.
Recommendations to ensure continued success of Amazon
Amazon set their productive outcomes to increase number of customers with
consideration of e-commerce. In this regard, customer centric worldwide and huge emphasis on
efficiency which contribute more success within the business (Sigala and Kyriakidou, 2015).
Therefore, following are certain recommendations can be successfully implemented at workplace
of the chosen business: Email marketing: Amazon take more care for personalised products that are
recommended through email. In this regard, it can be stated that company should provide
their offers and discount through e-mail on customer's personal mail ID (Valaei, Rezaei
and Ismail, 2017). This is because, it increases more opportunity to market with
transactional email that taken more advantages through on-boarding process. Rating and reviews: Rating and reviews are most popular aspect in the business which
helps to promote products and service in systematic manner (Zaccaro, Fletcher and
DeChurch, 2017). With this consideration, it can be stated that on all e-commerce sites
Amazon need to increase their attraction and customers views towards the products and
services successfully implemented with small features on platform.
Customer loyalty: Furthermore, customer loyalty program is also important that assists to
focus on marketing activities of the business to develop positive customer program.
Therefore, it helps to gain more success in Amazon to provide several advantages at
workplace (Litchfield, Ford and Gentry, 2015). In this consideration, loyalty program
members spend more 5 to 20% to maintain frequency for loyalty clients which rising in
business.
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