Essays on Strategic Analysis of Amazon Case Study

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Generally, the paper "Strategic Analysis of Amazon" is a perfect example of a business case study.   Amazon faces several problems which have greatly resulted in layoffs of about 1200 employees and the closure of the warehouse in McDonough, the service center in Seattle as well as the Georgia warehouse. This has been a result of the weak and unimpressive market conditions as the stock prices continue to fall to a record low of $5.97 from a record high of $106.69 in December 1999. In the bubble burst of 2000, Amazon. com was greeted with uncertainties with investors surprised with the number of losses that were eating into the company and remained to wonder whether there was any real business that was taking place in Amazon. com. Again this period saw the companies share price begin to fall and by March of the same year, over 75% of the shareholder's value had been wiped out as the stock price fell from $64.56 to $15.56.

These losses combined with the aftershocks from the April tech wreck have continued to wipe the investor’ s portfolio values and to respond to this the company has continued to cut costs.

Another great problem is the increasingly competitive environment within which the company operates from. Although the company has beaten all odds to emerge top among the leading competitors such as Barnes and Noble it has a great challenge of maintaining its status in the market. The great challenge remains in balancing quality with cost in order to accelerate the growth of the company. In the midst of this problem that the company faces it is important to establish the critical success factors which will ensure the continued success of the company.

The company has to focus on a few areas where things must go right by analyzing the goals and objectives of the company and working towards achieving them. The information system supporting the critical success factor has to be monitored which may include environmental factors such as economic, political, legal, and social aspects, competitive strategy, and industry position as well as the factors that account for the changes in the business environment. Favorable success critical factors will mean the success of the company as a whole. Developing relationships with other suppliers of the products as well as people and customers are environmental analysis strategies for ensuring the success of the company.

REFERENCE

Stockport, G. and Street D. (2000), Amazon.com from startup to the new millennium, European case clearing house, pp 38, No. 300-014-1
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