The Amazon culture can be described as an outcome orientation organization with managers asking for results without excuses. The company also promote aggressiveness among employees and because of that, the employees consider each other as competition and not as a team. Since the social context is becoming really important, Amazon is forced to change their corporate culture. Their culture had brought a lot of success to the company, but it is now however time to change towards a positive environment and a positive culture that
Forbes. Retrieved from https://www.forbes.com/sites/walterloeb/2014/11/20/amazons-pricing-strategy-makes-life-miserable-for-the-competition/#37d9ac1c5c60 Meyer, P. (2017, February 12). Amazon.com Inc.’s Organizational Culture Characteristics (An Analysis). Retrieved from Panmore: http://panmore.com/amazon-com-inc-organizational-culture-characteristics-analysis Mullaney, T. (2017, January 12). 5 Key Business Lessons from Amazon's Jeff Bezos.
In order to achieve its goal, Amazon implements some strategy during their planning stage, namely cost leadership strategy and differentiation strategy. 188.8.131.52 Cost leadership Strategy Amazon is implementing cost leadership strategy as its core strategy in serving its customers. The company has enormous number of warehouses and processing capabilities, which provide the company physical economies of scale. (ACCA, 2015) Amazon faced a few challenges when it first applied this strategy and as a result, in the late 1990s, the company showed no profit at all after few years of operations. However, Jeff Bezos, the founder and chief executive officer (CEO) of the company, remained optimistic and focused on cutting costs instead of raising the
Business to business:- The business to business side of Amazon is various. Amazon makes business relationship with all sizes of organizations from sole proprietorships to corporations. New and un-established organizations can begin with personal account and afterward move up to a business account when sales increase which means that Amazon provides organization with a means to sell or to advertise their products directly through Amazon by setting up their own pages on Amazon . Amazon does business to business marketing by transportation goods for clients when they sell. Likewise Amazon has advertisement so they promote for business.
Culture is often termed as the ‘basic underlying fact’ that makes the organisation set a shared vision and mission that is to be maintained by all the internal and external stakeholders of the company. However, for any retailer organisation present n the market, setting a culture is easy as customers connect physically and personally. For an ecommerce brand, it is quite a job that requires exercising. Ecommerce brands like Zappos can be facilitated with the aspect of culture by setting a vision that is expressed in all the actions and activities of the brand. Similarly as Zappos, a culture strengthens the brand in performing- and performances creates a strong customer base, a strong commercial market and certifies the continued
The fact that no one has seen anything like Amazon before makes people worried; this produces people into believing that the five- hundred and sixty billion dollar company has control of the economy, thus forming a monopoly. However, as long as the prices do not go up, consumers do not suffer, and competition challenges Amazon, then the company does not have a monopoly. The first reason that proves Amazon does not have a monopoly: the prices. Amazon does control the majority of e-commerce. However, Amazon prices stay low, enhancing the business of Amazon, which explains the dominance in online shopping.
They differentiate and provide better quality than their competitors across the industry. Q2) Jeff Bezos, CEO of Amazon.com, has stated that the best customer support is none. What does that mean? Amazon cares about their customers. They are customer obsessed meaning that they’re constantly listening to customers, and then continuously testing, enhancing, and personalizing the customer experience.
Jeff bezos strongly believes that all the people employed at Amazon are an important part of Amazon and are in some way leaders as well and he strongly believes that whatever is the outcome of any decision they take now will always be owned and accepted by every leader who was there fundamentally to make the decision. Jeff states that mistakes are made just to make us stronger in the future so yes we do own those mistakes and we will fight them to the fullest and make the company best of all. In Amazon it is not only the assets that are owned but also the right and wrong decisions made by any employee, manager or even the CEO is owned and also accepted. This concept in the long run incorporates the sense of responsibility in the heads of employees so that they realize that whatever they do and however they perform will affect the company in some manner, it will also affect them depending directly on the level of organizational commitment they hold to Amazon. It also incorporates the sense of
Also, among Amazon’s advantages is its infrastructure. They developed a unique web platform which provides high inventory turnover and fast shipments. Respectively, these factors boost Amazon’s cash flows and company’s competitors just cannot reproduce it. Behavioral Theories of leadership is another approach that claims the leaders are made and it concentrates on mental qualities or internal states. It is easily applicable to Jeff Bezos, since he is a self-made business tycoon.
From children to adults, anyone can be a customer of Amazon and providing products that can cater to the requirements of each age group is a tough task for the management. The quality expectations, the price range and the brand preference of each customer vary and the company needs to provide a large range of choice to become a market leader. Many customers shop according to the price range and budget therefore, providing a decent range in each price range is again considered to be an important parameter for Amazon. User experience is another important parameter that needs to be analyzed on a regular basis, as customers will not prefer any shopping site which gives hard time to them while buying and making payments online. A payment gateway is another factor that makes a major difference for the customers in choosing the site they prefer to shop.