Effective Organizational Change Strategies for Amazon's Growth

This report delves into the organizational changes implemented by Amazon, a leading multinational corporation, to enhance productivity and profitability. It discusses Amazon's diversification into various sectors, highlighting coordination challenges and the need for a focused corporate strategy. The report emphasizes the importance of identifying core competencies, such as cloud-based computing services and big data utilization, to improve business development. It also addresses the issues related to product failures and the necessity of robust supply chain management systems to ensure quality and timely delivery. The analysis suggests that by refocusing on core competencies, leveraging cloud-based technologies, and streamlining supply chains, Amazon can overcome its challenges, improve coordination, and achieve greater profitability in its global operations. This strategic shift will ultimately enhance customer and merchant satisfaction and drive sustainable growth.

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Introduction
Organizational change is defined as the strategies that enhances the productivity and
production of the firm and gives big profits. Companies can make various changes in the
organization that brings about greater amount of profit. A publicly trading company continuously
make changes in its operation so as to stay in the market and get huge profits. Amazon is a big
publicly trading company who has made several organization changes that enabled to be one of
the biggest company in the world (Zhu & Liu, 2018). It can essentially make few changes that
will benefit Amazon with large profits. The aim of the paper is to understand the effectiveness of
organizational change of Amazon and how can Amazon make better profits by making
organizational changes.
Discussion
Amazon is an advanced American multinational company that is engaged in the provision
of online market place for buyers and sellers to buy or sell their goods. The company has
effectively made huge sales and is valued as the greatest online retailer by market capitalization.
The company has more than 750,000 employees worldwide with a revenue of 232.887 billion
dollars. Amazon has expanded its sale in various sectors which creates a coordination problem.
However, the services are not expanded in all the countries such as North Korea, Cuba, Iran,
Syria and other countries (Perz et al., 2015).
It operates in the United States, France, Canada, China, Mexico, Germany, Spain,
Ireland, Australia, Italy, India, United States and Japan. Amazon Company has made several
changes in the organization. Amazon has been diversifying its operations in various fields
without any proper strategy which might lead to coordination and trading complications. The

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quest for market dominance can only be achieved provided that operates with a specific
corporate strategy.
Identifying the core competencies
Core competencies are availability of resources and skills by which the firm can be
distinguished from other firms. By identifying the core competencies, firms are able to utilize
their resources efficiently and gain a good position in the market. This helps the firm to gain over
the market by properly handing the business with respect to comparative advantage, supply,
consumer demand, logistics and marketing solutions.
Amazon has introduced a new Tablet Computer along with its own Kindle Fire device,
which failed in the market. Therefore, production of this device needs to be stooped and Amazon
must clearly make changes in choosing its core competencies. The thumb rule is to use various
strategies relating to market entry, services and product ranges as per their production advantage.
Thus, Amazon must diversify and integrate their supplements and complements into ventures
where they have core business strengths (Schildt, 2017). This can effectively improve the selling
options with respect to other agendas. Amazon needs to refocus into its strategies and make
suitable changes in its core competencies.
Diversification into cloud based computing services
Cloud based services relates to supply and delivery of products through an effective
online market structure comprising of networking, databases, software, data storage and servers.
Cloud based options is the latest trend of the business developers that leads to huge organization
growth and development. Amazon would effectively make organizational development with
respect to cloud based computing and big data which is effective for business development

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(Chen et al., 2016). Since Amazon is an online e-commerce company, implementation of cloud
based services would enable the firm to extend their services over core competencies. The role is
to enhance the productivity of the firms with respect to their strengths in complementary and
supplementary imperatives.
Amazon offers a range of portfolios for the small and medium enterprise which comprise
of data management, hosting services, storage space, and cloud based services through Amazon
Web Services (AWS). AWS would act more efficiently if it is tuned with the corporate strategies
(Cheung et al., 2017) that can effectively handle the cloud computing technologies because
under this system computers can manage data without active management from the user.
Amazon can maintain coordination problem by enabling the usage of big Data where the
company will keep the track of daily transactions and other financial records from web sales,
consumer complain, contact center and check the status of the product.
Maintenance of product failure
Amazon has invested in multiple deals and destinations to offer the product at a faster
pace. However, Amazon lost huge amounts when these daily deals started failing as products
could not be delivered properly on time. Amazon ships products that is provided by the
customers. For getting the prime subscribers, the merchandisers pays a special price. Amazon
often mixes the inventory of various merchants and counterfeit their supplements. Selling
shipping genuine products are often mixed with paid merchants which is a significant problem of
Amazon.
The problem can be sorted with the implementation of extensive supply chain
management systems and management teams (Altman & Tripsas, 2015). Instead of expanding its

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market power by serving multiple customers and offering various merchants, Amazon needs to
focus on its coordination strategies that manages supply and delivery. This change within
organization will satisfy both the customers and merchants to deliver quality products without
mixing prime subscribers.
Amazon can expand globally by effectively managing its economies of scale. Shipping
involves a huge cost and amazon does not have the availability of all the ports. Thus, Amazon
must setup local portals in its expanding countries for flexible operation of business. These
changes will boost the performance of amazon and return with huge profit margins.
Conclusion
Therefore, it can be concluded that effective changes inside organization will enhance the
productivity of the firms. Although Amazon is a very successful firm, there are few problems
inside the system and the company faces challenges in many sectors. Amazon needs to bring
changes in its corporate structure such that they should implement clod based techniques to make
greater sale. The first and foremost tool is to effectively identify the core competencies and
reduce or elevate product failure. For global expansion and manage coordination problems,
Amazon needs to make changes in its supply chains and generate greater profitability.

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