Strategic management of Amazon
Contents
Introduction 2
Structure and objectives of the report 2
Overview of the industry 3
Remote environmental analysis 5
Political 5
Economic 5
Social 6
Technological 6
Environmental 7
Legal 7
The operating environmental analysis 7
Industry rivalry: High 7
Potential for new entrants: Medium 8
Substitute products: High 8
Bargaining power of suppliers: Low 8
Bargaining power of buyers: Medium 8
Strategic capabilities of Amazon 9
Unique resources 9
Amazon’s core competence 9
Amazon’s stakeholder’s expectations 10
Shareholders (Investors) 11
Top management 11
Customers 12
Suppliers and distributors 12
Employees 12
Environmental groups 12
Regulators 12
Amazon’s corporate level strategy 12
Ansoff matrix 13
BCG matrix 14
Evaluation of strategies 17
TOWS analysis 17
Evaluation of the suitability of strategies 20
Conclusion 22
Future recommendations: 23
Reference: 24
Introduction
Amazon.com is a well-known multinational electronic commerce company selling various products and also producing consumer electronic products such as e-reader Kindle as well as industrial products such as cloud computing. It is the largest online retailer in the world with headquarters in Seattle, Washington, USA. It has more than 200 million active customer accounts around the world and offers a convenient way to shop products with affordable price, variouschoices and integrated product information (Amazon.co.uk, 2013).It has achieved great success and popularity over the last two decades with their progressive vision since it started in 1995: it wants to be earth’s most customer centric company, which means finding out what customers want by asking them and then giving it to them, figuring out what they do not know they want and giving it to them, the idea of personalization redecorating the store for every individual customer (Stockport, 2011). Amazon has faced many challenges over the years, for instance, is it reasonable to provide a heavy investment in technology? On the other side,
Introduction 2
Structure and objectives of the report 2
Overview of the industry 3
Remote environmental analysis 5
Political 5
Economic 5
Social 6
Technological 6
Environmental 7
Legal 7
The operating environmental analysis 7
Industry rivalry: High 7
Potential for new entrants: Medium 8
Substitute products: High 8
Bargaining power of suppliers: Low 8
Bargaining power of buyers: Medium 8
Strategic capabilities of Amazon 9
Unique resources 9
Amazon’s core competence 9
Amazon’s stakeholder’s expectations 10
Shareholders (Investors) 11
Top management 11
Customers 12
Suppliers and distributors 12
Employees 12
Environmental groups 12
Regulators 12
Amazon’s corporate level strategy 12
Ansoff matrix 13
BCG matrix 14
Evaluation of strategies 17
TOWS analysis 17
Evaluation of the suitability of strategies 20
Conclusion 22
Future recommendations: 23
Reference: 24
Introduction
Amazon.com is a well-known multinational electronic commerce company selling various products and also producing consumer electronic products such as e-reader Kindle as well as industrial products such as cloud computing. It is the largest online retailer in the world with headquarters in Seattle, Washington, USA. It has more than 200 million active customer accounts around the world and offers a convenient way to shop products with affordable price, variouschoices and integrated product information (Amazon.co.uk, 2013).It has achieved great success and popularity over the last two decades with their progressive vision since it started in 1995: it wants to be earth’s most customer centric company, which means finding out what customers want by asking them and then giving it to them, figuring out what they do not know they want and giving it to them, the idea of personalization redecorating the store for every individual customer (Stockport, 2011). Amazon has faced many challenges over the years, for instance, is it reasonable to provide a heavy investment in technology? On the other side,