Strategic Management for Amazon Company - Assignment Example

Case analysis of Amazon Company Name Professor Course Date 1. Start with an introduction telling about the company's history and current strategies as laid out in the case. Do not conduct additional research at this point. (1 page) Based in Seattle, WA, Amazon.com is one of the greatest and most successful e-commerce companies around the globe. Jeff Bezoz who was a graduate from the University of Princeton started the company in 1994. He did a Bachelors degree in electrical engineering, and computer science. Jeff started this company after resigning his job at the Wall Street bank. The company began as a simple bookseller and to date has grown and developed into a virtual internet marketing company that deals with a variety of items. Such items include cookware, toys, music CDs, games, and software among others. Jeff’s major reason for locating this company in Seattle was that the region had a mass pool of talents from which he could fetch good manpower. In addition, the company would enjoy the advantage of being close to one of the greatest bookselling stores, which was located in Roseburg. Amazon.com has formulated certain strategies that help it serve its customers efficient and ensure all its processes are carried out successfully. Some of its most successful strategies are the cost leadership strategy; this is where the company produces goods and services at lower cost levels. This has been used as a very competitive strategy against its competitors. It enables them, to sell at lower cost compared to the others. This makes them sell many volumes hence substantial profit. Another fundamental concept that has significantly boosted the company outcome is the quality strategy. The company ensures that the products sold out to customers are of intended quality. This has served to attract and retain a large pool of customers to them. Their product distribution strategies are very effective, and have earned the trust of many customers. The company owns several stores around the globe, a factor that makes it reach its customers easily and fast. These stores ensure easy distribution of items to customers. 2. Rewrite their vision and mission statements. (1 page) => Please refer the instruction and sample. At Amazon.com we will work to (1) build an exceptional portfolio of magnificence and the related varieties, (2) striving to exceed our opponents in value, innovation and quality, and promote our image to grow to be both the physical and online company most people turn to globally. For buying and selling, (4)we will develop into the leading destination store for all people, offering the expediency of various channels and brands, and offer a personal high quality shopping experience to help build lifelong consumer relationships. To be the leading direct Seller we resolve to(5)expand our existence in nonstop selling and pilot the innovation of new medium, (7)present an entrepreneurial prospect that bring superior earnings, recognition, support and service, making it simple and rewarding to be associated with us and enriching the picture of our business. (6)As the most excellent Place to work we resolve to be recognized for our management perimeter, through our enthusiasm for high quality standards, our value for diversity and dedication to form exceptional opportunity for skilled growth, so that our workers fulfill their maximum potential. (9) We are determined global champs for the well being and health of customers through charitable efforts that reduce dissatisfaction from the surface of the earth, and allow employees attain cost-effective independence. (8)As the best Company we commit to bring superior income to our investors by diligently pursuing innovative growth opportunities even as we continually improve our productivity. (6, 7)A socially ethical, accountable business that is emulated and watched as a successful model Amazon.com Vision statement To develop into a dominant player in online business and bring the globe into the digital era 9. Logically choose two strategies developed in step 5 above using the information from step 8, explain why you chose them, and conduct a QSPM using those two strategies. (2 pages) Strategies developed in no. 5 emanate from the SWOT MATRIX thus the strategies used here include integration strategy and intensive strategy. Integration strategy These are the strategies that a business uses to reduce extra costs and expenditures. Through this, the company can integrate many processes thus resulting into saving of time and money. Through this strategy an organization can put together its activities thus reducing the want for extra personnel and staff (Proctor, 2010). Below are some of the reasons for choosing this strategy. Under the horizontal integration strategy, the owners of the company gain much control of their competitors. This strategy helps in ensuring that the company subdues all its competitors thus providing room for growth Acquisitions and takeovers among the business competitors lead to increase in economies of scale. Such is an advantage since it increases the resources of the company. In this case, Amazon can merge or acquire small companies to make it have a proper grip of the market. This strategy is also ideal when an organization is in an economy that is fast growing. Grantham, & Carr, 2009). For instance, Amazon.com has many competitors like the Apple which offers very stiff competition in the market. As a result this strategy suites it best. In cases of increased economies of scale, this strategy is very ideal and can offer the amazon.com a competitive advantage over its competitors. Intensive strategy Under this strategy, the company views ways through which it can deepen its roots into the market. It defines the parameters of depth through which a company will operate (Aaker, 2008). The following are some of the reasons why this strategy was seen viable and selected for this purpose Since the market competition is getting stiff, the company needs to find better means of making a market entry. For this reason Amazon Company needs to know the best approach to give so as to gain a large market share. With major competitors like eBay and apple, the company needs to know of various means of diversifying its products. The intensive strategy is therefore ideal for such. To achieve long term goals and objectives, the application of intensive strategy can formulate basis through which the business can approach market. Such include bets means of advertising, best products, extensive sales promotion among others. These will help the company stay ahead of others in the competition. Also because amazon.com is expanding, there is a need for ensuring that new geographical locations are increased for the business existence, attaining this will involve the use of marketing development strategies. Through the product development strategy, the company can introduce new products into the market. In this case, the amazon.com will indulge in constant market study to understand the various products that customers need. From that analysis, they will be able to come up with very competitive products and services that will give them an upper hand over their competitors. With a large pool of human resource and services, the company can be certain of achieving the best in terms of market control and shares. This will come as a result of quality services offered by the customer care. Consequently, the Amazon Company will improve in its distribution strategy hence getting the best in the market. 10. Recommend one specific strategy and long-term objectives related to that strategy. Research Amazon.com to determine their current, 2013, strategies and compare yours to the actual strategies at Amazon.com. (2 pages) One of the strategies that I would recommend the amazon.com Company to adopt is the unrelated diversification strategy. In this strategy, the company decides to introduce new products and services different from the ones it traditionally offered. For instance, the company can start a consultancy services like providing persons especially students with tips towards effective writing. Such should involve offering tips and assistance on how to handle their assignments. Other similar ventures include search engine optimization services. The company can choose to train and advise companies on how to improve their search engine optimization. Many internet companies are on the quest to attain the first page ranking on the search pages. Deciding to venture along this line can help in ensuring that the company gets extra income out of its normal work. It also expands the market grip of the company. In the process of offering the services, many people of different niches will get to know about this company and further inform their friends too. Through his trend, the company can get lots of income hence help it manage other more activities. The use of this strategy has long-term benefits, and the company can earn many revenues through it. One of the greatest long-term objectives of this strategy is to generate a constant inflow of cash. The provision of online consultancy services has no seasons; they are always continuous depending on the new levels of technologies that are achieved each day. As the online competition gets stiffer, the need for SEO services arises hence creating the need for offering such services. The company will then benefit greatly from such. Another long term objective is to see the company expanding in terms of its niche. Through this trend, the company will not rely on offering goods and services along one line, but several means will be developed. Such means will serve as potential alternatives when other sectors fail. Therefore, in times of great need the company can rely on this as a means of forward mobility. This will make it stay strong against its competitors. Creation of awareness is another long-term objective that the company can achieve through the application of this concept (Moore, 2010). Due to the high level of interactions between the company and the online community, there will be a lot of awareness created regarding the nature of the services it provides and quality. Since amazon.com has a reputation of delivering quality, people will regard it along that line of perception hence making it get many customers. This marketing technique can boost the company to higher heights and make it achieve its strategies amidst high levels of competition in the market. Finally, this strategy will ensure that the company has sufficient funds to run (Terrill & Middlebrooks, 2010). Companies normally indulge in buying and selling of goods and services; therefore, when a company has a large running capital, it can comfortably finance and run its services without any fear of failure in the future. They thus develop an upper hand against their competitors who rely on only their normally sources of income. In addition, this company will enjoy possession of large market shares, a factor that will make them earn and enjoy great economies of scale. The unrelated diversification strategy proved as one of the best strategies that a business could implement to help it achieve its long-term targeted goals. References Aaker, D. A. (2008). Developing business strategies. New York: Wiley. David, F. R. (2011). Strategic management: concepts (13th ed.). Boston: Prentice Hall. Grantham, C. E., & Carr, J. A. (2002). Consumer evolution nine effective strategies for driving business growth. Stamford, Conn.: Gartner Press ;. Moore, H. (2010). The business tree growth strategies and tactics for surviving and thriving. Franklin Lakes, N.J.: Career Press. Proctor, T. (2010). Strategic marketing: An introduction.. London: Routledge, an imprint of Taylor & Francis Books Ltd. Terrill, C., & Middlebrooks, A. (2010). Market leadership strategies for service companies creating growth, profits, and customer loyalty. Lincolnwood, Ill.: NTC Business Books. Read More