Amazon.Com and Mattel - a Strategic Perspective
Amazon.com, from a strategic approach, is dominating the world-wide-web. They have become the world leader in online sales of books, music, videos, movies and other products and services. Amazon knew that the Internet could be used as a distribution channel, thus reducing their supply chain relations. By making these strategic advances, Amazon was able to achieve and sustain their competitive advantage.
After researching and reading the 2009 and 1997 Annual Reports, it was determined, that in order to achieve this recognition, they needed to acquire the United Kingdom and German online booksellers. By these acquisitions, they increased book sales in the European markets. They have also formed the following strategic partnerships: 1) with AOL (to become the exclusive book retailer for the public website). 2) Borders (another book retailer with an online presence, to manage their web operations) and 3) with record labels, movie studios, and publishers to provide consumers the ability to download music, movies and books to electronic devices and Amazon’s Kindle.
They also expanded their product offerings to include toys and electronics to add to their competitive advantage as technology grew. The expansion also included partnerships with ToysRUs.com to co-brand toys and video games. A partnership with the largest Chinese online retailer, Joyco, that included music, books, and other related items increasing their online presence in the Asian markets. They also added 21 new product lines across Europe and Asia (adding automotive in Japan, shoes and apparel in China, and baby gear in France).
It was also noted that Amazon uses mass customization to individualize the customer’s shopping experience and economies of scale, which decreases the cost of products as purchases increase with the help of technology. By using technology, they were able to establish a business model which was based on Mintzberg’s basic design school model (n.d. Example of a Strategic).
After researching and reading the 2009 and 1997 Annual Reports, it was determined, that in order to achieve this recognition, they needed to acquire the United Kingdom and German online booksellers. By these acquisitions, they increased book sales in the European markets. They have also formed the following strategic partnerships: 1) with AOL (to become the exclusive book retailer for the public website). 2) Borders (another book retailer with an online presence, to manage their web operations) and 3) with record labels, movie studios, and publishers to provide consumers the ability to download music, movies and books to electronic devices and Amazon’s Kindle.
They also expanded their product offerings to include toys and electronics to add to their competitive advantage as technology grew. The expansion also included partnerships with ToysRUs.com to co-brand toys and video games. A partnership with the largest Chinese online retailer, Joyco, that included music, books, and other related items increasing their online presence in the Asian markets. They also added 21 new product lines across Europe and Asia (adding automotive in Japan, shoes and apparel in China, and baby gear in France).
It was also noted that Amazon uses mass customization to individualize the customer’s shopping experience and economies of scale, which decreases the cost of products as purchases increase with the help of technology. By using technology, they were able to establish a business model which was based on Mintzberg’s basic design school model (n.d. Example of a Strategic).
References: Amazon.com (1997) Letter to Shareholders. Retrieved from http://phx.corporate-ir.net/External.File? item=UGFyZW50SUQ9Mzc2NjQ0fENoaWxkSUQ9Mzc1Mjc5fFR5cGU9MQ==&t=1 Amazon.com (2009). Annual Report. Retreived from http://phx.corporate-ir.net/External.File? item=UGFyZW50SUQ9Mzc2NjQyfENoaWxkSUQ9Mzc1Mjc3fFR5cGU9MQ==&t=1 Fowler, G. (2010, June). Amazon hit by technical problems. The Wall Street Journal. Retrieved from http://online.wsj.com/article/SB10001424052748704103904575337430326186048.htm Kavilanz, P. (2007). Mattel: Recalls Are The Least of Its Problems. Retrieved from http://money.cnn.com/2007/10/15/news/companies/mattel_call/index.htm Lipsher, M. Earnest, L. and Kim, V. (2007, December). Lead found in toy jewelry. The Los Angeles Times. Retrieved from http://www.ceh.org/storage/cehca/documents/LAT_12.13.07.pdf Mattel (1999) Annual Report. Retrieved from http://files.shareholder.com/downloads/MAT/1189599211x0x228945/6D5E2393-4CE5-49DE- BC1C-E2B20D373895/1999_annual_report.pdf Mattel (2009) Annual Report. Retrieved from http://files.shareholder.com/downloads/MAT/1189599211x0x362364/DE3C1DC8-EDD4-41AD- 81E5-2D8251DB8E5D/Mattel_Annual_Report_As_Printed1.pdf Mattel issues new massive China toy recall. (2007). Retrieved from http://www.msnbc.com/id/20254745/# Miller, R