Strategic Analysis of Amazon: Mission, Vision, and Objectives

This case study analyzes Amazon's strategic management, focusing on its mission, vision, objectives, and business model. It examines Amazon's mission to offer low prices, wide selection, and convenience, as well as its vision to be the most customer-centric company. The study delves into Amazon's virtuous cycle business model, emphasizing its cost leadership and customer-centric approach. It discusses Amazon's customer-centric approach, product and service offerings, global market presence, and technology integration. Furthermore, the study addresses Amazon's growth strategies, values, competitive advantages, and concern for public image and employees, providing a comprehensive overview of the company's operations and strategic positioning.

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CASE STUDY
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Author Note

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Executive Summary
Organizational strategy includes all those actions that a company takes in order to achieve its
goals for the long period of time. Strategic planning therefore helps in providing a direction and
also outlines the measurable goals. Therefore strategic planning helps in guiding day to day
operations and evaluates the progress and helps in changing approaches according to the external
environment. The organizational strategy is prepared based on the mission statement of the
company. A mission statement includes the reason of existence for a company, discusses about
its overall goals, and includes identification of the gaols of the operations. Therefore a mission
statement of an organization includes information about the goods and services offered by the
company and also include the regions of operation of a company geographically. The vision
statement of a company on the other hand discusses about the objectives of an organization that
helps in guiding the decision-making within the organization. All types of organization even the
non-profit organizations create a vision statement. Organizational goals and objectives include
all the operations that are required to be done by an organization in order to achieve its vision
and mission. The company selected for the paper included Amazon. The main aim of the paper
was to discuss about the vision and mission of the company under study. The paper therefore
discussed about the existing mission, objectives and goals and business model of Amazon and a
new mission statement of the company.

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Table of Contents
Introduction..........................................................................................................................3
Discussion............................................................................................................................3
Existing mission statement, vision statement, objectives and strategies.........................3
Amazon business model..................................................................................................4
New Mission Statement...................................................................................................5
Customers....................................................................................................................6
Products and services...................................................................................................6
Markets........................................................................................................................6
Technology..................................................................................................................7
Concern for growth, survival and profitability............................................................7
Values and beliefs........................................................................................................7
Competitive advantage................................................................................................8
Concern for public image............................................................................................8
Concern for employees................................................................................................8
Conclusion...........................................................................................................................8
References............................................................................................................................8

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Introduction
The Vision statement of a company discusses about the ultimate goals of the company
and the values that guide the journey towards achievement of the long-term goals (French, Kelly
& Harrison, 2001). The mission statement on the other hand includes- discussing about the
activities that the organization carries out in order to exist. And once the vision and mission
statements have been formed by an organization, it becomes necessary to create a company’s
strategy. The company strategy includes both the short term and the long term goals and
objectives and discusses the way in which these can be achieved (Oghojafor et al., 2011). The
organizational strategies are flexible and therefore they need to be continuously revised such that
it can be aligned to the changes in the external environment. The company selected for the
purpose of this study includes Amazon ( Eric Anderson PhD, & Brad Jamison, 2015). The main
aim of the paper is to discuss about the vision, mission, strategies and business model of the
company selected for the purpose of this study. The paper will therefore discuss about the
existing mission, vision, business model used by the company and a new mission statement for
the company.
Discussion
Existing mission statement, vision statement, objectives and strategies
The mission of Amazon is to offer the customers goods and services at the lowest prices
and also offer the selection of best alternatives and to do everything with utmost convenience.
The mission of the company is aimed at satisfying the customers’ needs through e-commerce
services. Therefore the mission of the company is focused on three main variables that is best
selection, lowest prices and utmost convenience (US About Amazon., 2020). The pricing

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strategies of the company are guided by lowest prices and the company attract its customers
through these low prices. The company also believes in providing a variety of goods and services
such that the customers can select the best alternative. Moreover the company also aims at
improving the customer’s experience (Simpson, 1994). The vision of Amazon is to become the
most customer centric company of this earth where the customers can discover and find
everything that they wish to purchase. Therefore the three main elements of the company’s
vision is- having a global reach, adopting a customer centric approach and selection of products
from the widest range of products offered by the company. In order to have a global reach, the
company wishes to become an international leader in the e-commerce sector. Therefore its main
aim is to continuously expand its operations globally. Moreover the customers are considered as
the most important stakeholders of the company which is quite evident from the fact that the
company engages in a number of CSR or corporate social responsibility activities.
Amazon business model
The business model used by Jeff Bezos who is the founder and the CEO of Amazon,
follows his very famous business model of virtuous cycle. Therefore the business model of the
company is mainly driven by a low cost structure (David & David, 2016). Moreover the
company could have converted its structure of low cost into a high cost one by sharing the profits
with the shareholders but the company decided to pass the profit to the customers instead
through lower prices and also invests the surplus into the growth of the company. Moreover the
surplus is invested into delivery network and fulfilment of the customer’s needs. This has
actually helped the company in lowering its costs which further affects the other elements of the
virtuous cycle and this is how the cycle keeps revolving.

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Figure 1: Virtuous cycle model of Amazon
Source: (Harracá & Coriat, 2017)
New Mission Statement
The company aims at fulfilling the needs of the customers through providing them with
wide range of goods and services through both online and offline channels, with the help of tech
based formats aimed at increasing the global reach of the company. At the same time the
company is also aimed at offering its goods and services at the minimum possible price thereby
maintaining its values and beliefs of consumer obsession. The company is also aimed at gaining

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a competitive edge over its competitors through its human resource management, better public
image and also minimum pricing strategy.
Customers
Amazon adopts a customer centric approach since its incorporation because it was started
to provide online sales of books however it has been pushing its boundaries by trying to meet all
the needs of its customers (Altıok, 2011). Moreover the company ensures the same through its
amazon prime membership where the company promises to deliver goods and services to the
customers in one days’ time. Therefore the new mission statement of the company is also aimed
at improving the experience of customers.
Products and services
The new mission statement aims at improving the customers experience by giving them
the opportunity to select products and services of their liking from a variety of options provided
by the company and through improved services to the customers. The major products and
services offered by Amazon includes- Amazon echo, fire TV, Fire OS of Amazon, Amazon Fire,
Amazon kindle, Amazon.com, Amazon music, and others.
Markets
Moreover the company carries out its operations worldwide. The company ensures the
access of its products and services from anywhere in the world through their web page and by
delivering goods and services across the entire world. Moreover the company also helps its
customers in making their purchase decisions and to give a review about the same on the page of
the product purchased by them. Therefore customers can directly give a feedback about the

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products and services by posting their reviews directly on the products page
(Performancemagazine.org., 2020).
Technology
The company makes use of technology based formats such as Amazon dash button,
Amazon fresh and various others. Moreover the company also aims at becoming profitable by
adopting its low pricing strategy.
Concern for growth, survival and profitability
Moreover a number of growth and development strategies are used by the company such
as its market development strategies. The company is expanding its operations to a number of
countries and the company is present in almost every country except for a few. The company is
using market penetration strategies in the countries where is presently carrying out its operations
by generating more revenue. Moreover the company is continuously diversifying and also
developing new products and services for meeting the changed needs of the customers.
Values and beliefs
Business model used by amazon reflects its values of consumer obsession and therefore
includes a low structure approach for the purpose of meeting the needs of the customers (Ehmke
et al., 2004). The profits made by the company are invested by it in improving its customers base
by reducing the prices instead of using the same for distribution to the shareholders of the
company in form of dividend.

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Competitive advantage
The company tries to achieve a competitive edge over its competitors through its cost
leadership technique. A competitive advantage helps a company in creating a better image in the
minds of the customers than its competitors.
Concern for public image
The company is well aware of the increased environmental concerns of its customers and
therefore it aims at achieving a zero carbon shipment.
Concern for employees
The company believes in the fact that the employees of the company are very important
and therefore it has recently decided to contribute about 700 dollars for the purpose of retraining
its employees.
Conclusion
Therefore from the paper it has been understood that it is important for organization to
create its vision, mission and objectives. The vision statement discusses about the ultimate
purpose for which an organization exits and is based on the core values and beliefs of the
company. The mission statement on other hand includes all those goals and objectives that needs
to be achieved by an organization for the purpose of achieving its vision statement. Moreover
from the paper, the vision, mission and the business model of Amazon has been understood. A
new mission statement has also been discussed in the paper.
References
Altıok, P. (2011). Applicable vision, mission and the effects of strategic management on crisis
resolve. Procedia-Social and Behavioral Sciences, 24, 61-71.

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David, F., & David, F. R. (2016). Strategic management: A competitive advantage approach,
concepts and cases. Pearson–Prentice Hall.
Ehmke, C., Dobbins, C., Gray, A., Boehlje, M., & Miller, A. (2004). Developing Vision and
Mission Statements. Purdue Extension.
French, S. N., Kelly, S. J., & Harrison, J. L. (2001). Operationalising vision and mission. Journal
of Management & Organization, 7(2), 30-40.
Harracá, M., & Coriat, B. (2017). Business models and organizational forms: searching the edge
of innovation in Google and Amazon (Doctoral dissertation, Master Thesis).
Oghojafor, B. E. A., Olayemi, O. O., Okonji, P. S., & Okolie, J. U. (2011). Enhancing
Organization's Performance Through Effective Vision and Mission. Chinese Business
Review, 10(11).
Performancemagazine.org (2020). Amazon’s Most Important Intensive Growth Strategies.
[online] Performancemagazine.org. Available at:
https://www.performancemagazine.org/amazon-growth-strategies/ [Accessed 3 Mar.
2020].
S Eric Anderson PhD, M. B. A., & Brad Jamison PhD, M. B. A. (2015). Do the top US
corporations often use the same words in their vision, mission and value
statements?. Journal of Marketing and Management, 6(1), 1.
Simpson, D. (1994). Rethinking vision and mission. Strategy & Leadership, 22(5), 9.
US About Amazon. (2020). About Amazon. Retrieved 26 February 2020, from
https://www.aboutamazon.com/our-company