Diversification Strategy Of Amazon

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Amazon has achieved many milestones from starting in the founder’s garage in 1994 to the growth in revenue to US$147.8 million in 1997 and then to the revenue growth of US$177.866 billion in 2017 (Amazon, 2018a, Amazon, 2018b and Jurevicius, 2018). These milestones were achieved through tenacious focused strategies of meeting their customers’ needs and wants. These strategies have maintained and expanded their customer base locally and internationally and have increased its market shares and profit over the last two decades. In addition, projection for the company’s growth and expansion for the next three to five years looks positive as it predicted to grow at the same rate with its expansion internationally and continued focused in satisfying consumers’ wants (Amazon, 2018a). Although, some factors such as governmental policies, legal issues and natural disasters could pose a threat to Amazon’s growth plans, the management team led by the founder and Chief Executive Officer (CEO) are working on mitigating the risk (Amazon, 2018a). Some of these efforts are the planned building of its disaster recovery data farm in Canada and construction of more fulfillment centres in Asia, Europe and the rest of the world (Amazon, 2018a). Diversification is another strategy that Amazon has employed in improving its market stocks and money earned. Amazon Web Services (AWS) is a good example of diversification strategy employed by Amazon in order to increase its revenue and market shares.

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