Amazon Strategic Management Case Study

923 Words4 Pages
Strategic management is a business concept that consists of decision-making, analysis and actions an entity undertakes with an aim of creating and maintaining an upper hand. This concept involves three processes; analysis, decisions and actions. It involves the analysis of strategies and the internal or external environments of the entity. After the analysis, strategic decisions are made, covering local and international operations. Using of strategies requires proper allocation of the important assets.
Technology has important effects on business operations. Regardless of the span of your enterprise, technology has both tangible and intangible benefits that will help you make profits and create the outcomes your customers demand. Technological
…show more content…
Amazon has discovered ways to reduce cost by using practices that are both efficient and effective or by employing a different technology. For example, Beats Headphones are one of the most high-end Headphones available within the Music market and are sold at a much cheaper price than the actual MRP. Amazon, along with reducing the cost, have warehouse in rural areas where the land is cheaper comparing it to that of urban or sub-urban areas.
Amazon use corporate strategies as well, the strategy to grow through mainly focusing on customer experiences. Looking into the Ansoff matrix we can see that Amazon was able to adopt all the 4 strategies. They have been able to penetrate the existing market, diversify, and develop products and markets. Technology advancement helped Amazon revolutionize the book industry. As the firm expanded Amazon diversified not only by selling books but albums, movies, toys, clothing, and electronic items along with second hand
…show more content…
Everyone in the US preferred using Amazon because of its user-friendly function/abilities. Everything you needed was just one-click away. The goods that were bought online had to be shipped to the buyers which brought additional transportation cost. This was also one of the reasons why Amazon was not able to sell FMCG products. But because of the exponential growth, technological advancements and pricing strategy of Amazon, it is now able to cut down its transportation cost and deliver most of its product free of charge eventually making the customers happier.
With reference to “The Cost of Free” with the development of World Wide Web it was open for business. Amazon was able to take the first hand. Amazon founded a gap in the market; book stores (no matter their size will have limited choice). Amazon also uses technology in order to promote itself. It spends huge amount of cash to advertise itself and the different ongoing offers in
Open Document