Strategic Analysis: Amazon's Performance and Strategy Evaluation

This report provides a comprehensive analysis of Amazon's strategic management, focusing on its performance, strategic planning, and the impact of external factors. The report begins with an introduction to strategic management, defining its key aspects and importance. Part A critically evaluates Amazon's performance, highlighting its strengths such as brand recognition, customer orientation, and innovation, while also considering cost leadership and market position. It assesses Amazon's strategy plan, examining its approach to stakeholder participation and strategy evaluation. The report then delves into the external factors impacting Amazon, including political, economic, social, and technological influences. The report also examines issues facing the organization at the industry, national, and global levels, as well as the internal and external factors impacting organizational innovation. The conclusion summarizes the key findings and insights into Amazon's strategic management approach and its implications for the company's future.

Strategic
Management

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
PART A (1)......................................................................................................................................2
Critically evaluate the performance........................................................................................2
Evaluate strategy plan.............................................................................................................3
Reflection.........................................................................................................................................5
PART 2............................................................................................................................................6
Issue facing organization at the industry, national and global level.......................................8
Internal external factors impact on organizational innovation...............................................9
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
SM is defined as it is a set of managerial decisions and actions that takes long run
performance of an organization. it involves the environmental scanning in overall aspect such as,
internal or external factor including the strategy formulation, strategic or long run planning,
strategic implementation evaluation and control. The study of strategic management therefore
emphasis the monitoring and evaluating of external opportunities and threats in the light of
corporation, Strength and weakness. It is also responsible for management decisions and actions
according to the Fred R David strategic management is an art of science of formulating and
implementing and evaluating cross functional decisions that enable an organization to acquire its
objectives. There is various aspect of strategic management they include the vision, mission and
objective, SWOT analysis, corporate level strategy business level strategy and strategic plan.
Also include the project, procedural, resource allocation, structural and behaviour and analysis
and assessment (Witcher, 2019). It strives to acquire wide goals such as integrates various
function, concerned with both efficiency and effectiveness. It also considers a broad range of
stakeholders that put stakeholder value creation first and entails multiple time horizons. It is
essential to give overall direction through developing plans and policies structure to acquire
objectives and then allocating resources to implement the plans. Strategic management also
focus on the organization to build best company at global level. CEO of organization is
responsible for make the strategy for the betterment of the company so that they are able to
generate revenue along with the profitability and make their own bench mark in the market
place. Ultimately, it also looking forward to gain competitive edge over their competitors. The
main purpose of strategic management is to help in commercial enterprise to meet their aims and
objectives and also outline the actions and decisions that allow an organization to acquire its
goals. It is very essential component of commercial enterprise therefore it entails evaluating
business aims and objectives, company mission and vison along with the future plans according
to the strategic management process is employed to assist that all the commercial enterprise are
able to run effectively and efficiently. It also gives the direction to the enterprise in ethical
manner to accomplish them require goals. If business man or entrepreneurship looking forward
to open a new business in international market they have to make strategy to do work a global
level after that they supposed to do research in multinational market to know about the customer
needs and wants to fulfil it. It is depending upon the company to clear understanding towards the
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goal, where its wants to be in future and the values that will guide actions, and helps and
company is looking forward to gain the competition advantage to improve the market share and
plan for its upcoming scenario. According to the today’s public organization, it will help in the
public sector to experience in growth and expansion. Also assist to the company (Makadok,
Burton, and Barney, 2018). By applying the appropriate kind of activities the organization is
bound to grow greater. It describes the organization will do to try for best to accomplish there its
vision and usually some sort of performance goal for instance, to launch a new product, enhance
profitability or grow market share for the organization product. It gives advantage to SM, it
discharges board responsibility, forces an objective assessment, gives frame work for decision
making also supports the understanding and buy in, enables measurement of progress, gives an
organizational perspective and future does not unfold as expected. It might be expensive.
MAIN BODY
PART A (1)
Critically evaluate the performance
In the context of the concern brand Amazon, it is the world leading online retailer that derives its
strength, it focuses on customer satisfaction to accomplish their need and demand and it is
primarily form a three pronged strategy thrust on cost leadership, differentiation and focus. This
thing also resulted in the organization reaping the gains from this course of action and also
helped its shareholders derived value from the organization. the competitive strength of this
brand is strong brand name as a massive e commerce business along with the strong position and
successful brand image in the market. Amazon is ranked second position in the world along with
the brand value of $200 billion. Other aspect is customer oriented the concern brand cater a high
number of consumer for daily requirements at in inexpensive prices that made a customer
oriented brand. differentiation and innovation its brings and innovative idea for its goods line and
service offerings like they provide customer courier with the help of drone. This thing develops a
differentiation from the others organization (Amason, and Ward, 2020).
Cost leadership, this organization does not incur the cost in maintaining physical retail store by
selling everything with the help electronic business. it is considering as merchandise selection
which owns extensive product mix attracts online consumer to develop their majority of
purchase from its rather than other online sites or retailers. It involves the third party to sell their
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product and take commission from them for generates the revenue and earn the profitability.
According to high traffic volume of amazon sites, it is a third party sellers that joined the
platform to amazon to sell their own merchandise to realise its strength and weakness and also
able to invest more valued competencies (Pfarrer, and et. al., 2019). High number of acquisition,
this strategy develops partnership with local supplies with local supplies chain organization that
assist in competing against domestic e commerce rivals. It also understands the local needs and
launches its services according to the nation environment.
Market position
As per the researcher, an American market research organization, Flipkart had 31% market
share, and making it is the largest online retailer. In United states e commerce market hit around
48 % that around 4 % of all retailer spent across the whole country. Amazon top 3 competitors
collapsed with E bay coming in at 6.5 %. Apple at 2.5 % and Walmart at 3.7 %. Areas where
amazon is changing supply chain management. Continuous fulfilment no longer can a
distribution organization just collect orders fill them at the end of the day. More incentive
management, better automation, bigger warehouses, last mile logistics, reversing the inventory
and logistic dynamic. If organization wants to change their supply chain, enhance supply chain
visibility. Automate where it counts and keep all necessary parts well managed. Keep busy
information technology departments. Measure training programs, and also device a good project
plan. Amazon looking forward to build their customer relationship for the better of the
organization. so that business can run effectively and efficiently (Dzwigol, 2020).
(2)
Evaluate strategy plan
Plan assessment is an interior examination tools that should be used as a part of a wider
strategic analysis for the company then creation decision about strategy, typically, the strategy
evaluation procedure involves answering questions like how much progress have we made
towards our vision and mission. To determine the strategy evaluation organization, have to do
take stakeholders and get their participation in the evaluation process (Witcher, 2019). Explain
the approach that company want to appraise after that design evaluation plan and grow an action
plan to carry it out, in last obtain the information that need to answer the in assessment questions.
In the content of amazon, the founder of the organization Jeff Bezos they looking forward to take
the organization in hype they want to grab whole e commerce environment in which he
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implemented various kinds of strategies methodologies and various other aspect to become best
or successful. These all strategy helps to accomplish aims and objectives of the business .The
commercial enterprise of the company keeps flourishing in every year. Now a time the concern
bran amazon is contribution around 500 million online. Organization users create interactive
website that is easy to use and has played very essential role in grabbing the consideration of the
consumer. There are so many organizations who are looking forward to generate their revenue,
but amazon is one of company they focus on their customer, this thing will help to generate more
revenue along with the profitability. Others companies selling their goods and services with the
help of amazon web service as these home goods of the organization apprehended a large
amount of customer market internationally. Now a time organization ordered third by affluence
world most admired companies (Phillips, and Moutinho, 2018). They provide various products
at global level, however organization is looking forward to become more successful of business
through giving the world class consumer service and their esteemed efforts in developing
successful their upcoming business strategy which is focused on new innovation they provide
goods to their customers with the help of drone. The concern organization is a multinational
organization there are several external factors which affect the business of the company. To cope
up with the situation there are expected and unexpected and issues there is various factor such as,
political, environmental, social, economic and various other which is given below:
Political issues include the overall aspect and government is the responsible of this factor,
improving the cyber security is an opportunity as the organization will also focus on maintaining
a network that is secured and this thing develop the trust between the customer for sharing their
details like credit card information and address. Political disruption can lead to supply chain
management in the context of sales is a threat and weakness due to several kinds of issues and
political discrimination. Economic factor is looking forward to build a structure in electronic
grocery like Walmart (Tereshchenko, and et.al., 2019). This thing creates an issue for the
organization. the second brand Walmart is an establish product line of grocery and direct to drop
in share of price of amazon. Monetary fund fluctuation it might be threat they can impact the
economic condition of so many countries. Socio culture increases the customer in developing
countries is an opportunity as a purchasing power of the customer is increasing after disposable
income. Availability of high speed internet and changing in technology has attracted many
customers that is an opportunity of the company. This is an achievement for the organization
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when social sites encourage its market, tis concern organization, it is an achievement for the
company at the time of social media encouraging its market, the concern brand also emerging
resulting both internet and amazon. Technological factor involves the IT profiency is increasing
making the platform of the application as user friendly opportunity as if the application or
websites easy to understand and also grab more consumers will attract towards it. It has a
negative part it increasing the cybercrime that is a threat of the company which is not having a
secured network this can lead hacking of the data of the customer. Investment in technology at
continue interval it is also create an issue for an organization that focus on technology it implies
time will have shared from customer to technology and opportunity that thing will be able to
develop a network that is safe to handle. Automation increase the efficiency of commercial is an
opportunity with the help of robotics so that work efficiency can be changed. Company has great
option to increase their business, it has amazon prime they are attracting the consumer and also
deliver the product at the doorstep of the customer with the help of drone. This organization is
known for providing free shipping and convenience that also gives a vast selection of products at
competitive price. There is no hassle return, an easy checkout experience and a high source of
appraisals also assist to make amazon a go to option for a growing number of clienteles. This
company pursued business level strategies, it outlines the four principle that guide the
organization consumer obsession rather than competitor focus, passion for invention,
commitment to operational excellence and long term thinking. In both their online and physical
location the focus is on selection price and convenience. Amazon strategy describes the business
strategy is guided by four principle and consumer obsession rather than competitor focus and
passion for invention commitment to operational excellence long term tactics (Konovalova, and
et.al., 2018).
(Holloway, 2018).
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Reflection
If I am looking forward to open a business at multinational level, I have to do specialization in
business management so that I am able to study about the strategic management which is very
important because SM helps to assist how to operate the business how to implement the various
tools and techniques to accomplish the aims and objectives of the commercial enterprise. To
open a business in international market so, I have to survey and research at in multinational
market to know about the consumer needs and wants to full fill their requirement. To develop the
career, I have to learn all other tactics of business, because to open enterprise at global level is
not an easy game. There are so many competitors in the market and they have also good tactics
to run the business. What I have to do, I have to make best quality product in affordable price for
the consumer. This thing will help to grow my business and this strategy increase customer
footfall towards my organization. To increase the competitive advantage or customer I have to
use social media sites to expand my product and services. So customer will attract towards them.
This strategy helps for betterment of the organization in which enterprise able to enhance their
brand value along with the brand image. After set up the business it is able to run smoothly and
efficiently and also able to generate the revenue along with the profitability.
PART 2
The SWOT analysis reveals the largest online retailer company is amazon used a competitive
advantage to become the dominant player in the retail industry. It identifies all the key factors to
find the strength weakness threat and opportunity of the organization, here is the background of
the organization Amazon. com it was founded on July 5 1994 this industry served the internet
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service. It generates revenue of around 2.80. 522 billion in 2019 and 20.5 % increased over232.
887 billion in 2018. Total employees working around 7, 99000. The competitors of the business
are Alibaba group, apple. Inc. Facebook, international business machines corporation, Microsoft
corporation, Walt Disney, Netflix, and many others. Everyone knows Amazon is the largest
online retailer in the world, organization online operation brought a massive billion in revenues
more than the few largest online retailers earned each other. It allowed the company to become
the second-largest retailer at the global level. The key success of the organization is all about
they provide the best services to their customers it is the largest merchandise selection and a
huge number of third-party sellers. It is the low-cost structure that direct to the lower price that
collapsed with a massive range of product outcomes in a better customer experienced. It satisfied
the customer invariably return to the amazon websites that creating ever-growing traffic, which
subsequently attracts another party which means third person seller to the market place. These all
factor directly to the fastest enterprise growth for amazon. It is a low-cost structure, this
organization unable to incur huge costs related to running physical retail outlets. The online
marketplace also potentially allows for selling more units without any enhance in marginal costs
(Ketchen Jr, and Craighead, 2020).
It continues to invest in both additional fulfillment centers to enable a reduction in order
fulfillment times and shipping costs. Amazon includes the appropriate strategy, which includes
several commercial enterprises such as' subscription services, commerce enterprise website with
millions visitor's particular day organization had to invest highly in its server organization.
This investment plan helps to company to grow more in the market, and the strategy of the
business was excellent because at that time youth looking forward to grabbing entertainment
everywhere and anywhere so amazon planned they will give the best quality service to their
customers at an affordable price. Server capacity helps the amazon web server to maximize its
efficiency. It also gives two significant rudiments for its sites (Keding, 2020).
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Speed
Page load speed is important for amazon, every 100 Ms of delay cost the organization tens or
hundreds of millions due to the lost consumer. It helps to increase website load time so that the
concerned brand can serve each consumer within a certain period. subscription services give an
advantage from this. It includes the overall scenario such as video content amazon serves their
customer with a particular time of period, increasing their gratification within the facility (Agwu,
2018).
Capacity
At the peak time of replicated Monday after Thanksgiving in the US and the different weeks
directing up to the festivals or occasions such as Christmas, amazon receives an overwhelming
number of visitors to their sites.
At the peak time, the concerned brand also looking forward to enhancing their number of visitors
to cope up with the difficulties. in the context of packaging and shipping costs that minimize two
or more two items that are shipped as a result, if organizations ethically do so, it will be easy for
them to generate revenue along with the profitability due to this customer satisfaction will
increase. Amazon consumer that is signing up for the member for the appropriate delivery and
high discounts that are more likely to consume the amazon prime content will get locked to the
prime membership. On the other side, people want to join prime membership by the amazon
prime content that will spend more on an amazon marketplace due to membership advantage that
creates various benefits for every amazon service along with the organization. This thing will
assist the business to run ethically (Priem, 2018).
Issue facing organization at the industry, national and global level.
There are various common challenges of international business, when busy in international
commercial enterprise. It is very essential to consider the language spoken in the organization
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too which people looking to expand. It is a very critical task to speak another country's language
by speaking to an organized team member that is dependent upon international offices. Once
again, investing in interpreters that can assist ensure commercial enterprise constantly operate
smoothly.
Cultural differences, every country has its makeup language each also has its own specific
culture or blend and it consists of the holidays, arts, tradition, foods and social norms followed
through a specific group of people. It is very essential to learn about the cultures of countries
where organizations looking forward to opening their business. At the time of managing the team
in offices or abroad, sealing product to an international retailer or potential client, or running an
overseas production facility demonstrating that have taken the time to understand their cultures
can reckon the respect and emotional intelligence mandatory to conduct business successfully.
This thing will assist to generate more revenue as well as profitability (Rascão, 2020). Managing
the global terms, it is very tough to manage the relations in global terms, because there is so
many difference in culture society, mindset, and many other aspects. Sometimes people will not
accept and many other challenges of multinational business are managing the employees who
live all over the world. When trying to function as a team, it might be tough to account for
language barriers, cultural differences, and varying levels of technology access and reliance. To
build and maintain a strong working force relationship with a global team that facilitates regular
check-in mostly using an online video conferencing platform so that they can interact at the
appropriate time.
Currency rates and inflation rates, it is the biggest problem because dollar rates are getting up
and down. It is also important to monitor inflation rates, that are the rates and that general price
levels in the economy enhance year over year that expressed as a percentage and inflation rates
vary across countries and can impact materials, and labour cost as well as product pricing (Dias,
and Ferreira, 2019).
Nuances of foreign policies, relations, and politics. It does not exist in a vacuum and is also
influenced by politics, policies and laws, and the relationship between the countries because
those relationships can be extremely nuanced, which is essential that closely follows news
related to countries where the business. To prepare to do business at a multinational level first of
all survey in the market, what is the need and demand of the consumer which helps to
accomplish their aims and objectives and also acquire their mission for reach to the top and
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