Amazon’s competitive strategy is cost leadership. Amazon has achieved a lot on a great scale that it gets the best prices from its vendors so they can operate in very flexible and thin margins and sell their items easily at retail prices and make money. They also provide shipping products for a reasonable cheap price. They also have improved their warehouses by giving some space to other sellers who want to sell their items through Amazon. They differentiate and provide better quality than their competitors across the industry.
The Amazon vision statement is “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online (Amazon.com). There are three important characteristics such as Global reach, Customer prioritization, and the widest selection of products. Global reach with Amazon is to make the company globally with authority in a e-commerce retail online. Customer prioritization is the customer is the most important people and comes first in the online business. Amazon’s vision statement is to continue on increasing the product lines and keep on growing the markets.
Amazon Name Institution Date Amazon Executive Summary Amazon is a giant in the online retailing business. The organization’s strengths include the minimum structure and cost strategy, product diversity, a structured delivery system and its customer-oriented policies. The company offers clients a wide range of products at lower prices compared to its competitors. Weaknesses are large debts, product failure, tax evasion, reduction in margins and losses due to free shipping. Tax evasion gives Amazon a bad reputation; for this reason, some potential clients do not want to be associated with it.
For instance, the company’s prices for the same products are different between the United States and the United Kingdom, which has its own Amazon website (amazon.co.uk). This strategy is advantageous because it enables the company to adjust its prices based on national market conditions, perceived value of products, and consumer preferences and expectations. In relation, Amazon.com Inc. uses the value-based pricing strategy, which involves price levels based on product value, considering consumers’ perception of value. Thus, the company’s marketing mix reflects flexibility in adjusting to current market
They build a customer strategy within the minds of their employees so they can become customer driven and are always thought to develop thought-provoking, different ideas to suit Amazon’s customers. Amazon match their employees to these competencies to complete the right task and this then gives the HR department an opportunity to assess the programme each time for progress and improvement. In order for a centric company like Amazon to succeed, they must be always on the target with looking to recruit new, exciting people to join the business to make gradual important changes. According to
:equivalent of Wal-Mart because of its reach and global footprint as well as its aggressive pricing strategies (Linden, Smith, & York, 2003). Amazon can leverage from a lot of opportunities developing economies and can guarantee the supply of of warehouse globally in order to ensure effective delivery of goods to its customers. Using the environmental scanning framework, below is the SWOT analysis of the company. Strengths in the SWOT analysis of Amazon Being the world’s leading online retailer, Amazon derives its strengths primarily from a three-pronged strategic thrust on cost leadership, differentiation, and focus (Linden, Smith, & York, 2003). This strategy has delivered the company to obtain the benefits this course of activity and has
Amazon is extremely market-oriented. For instance, Amazon was positioned by its leader as global customer-centric company where virtually anything that people are looking for can be successfully found and ordered. The most attractive sides of Amazon‘s business strategy are low prices, vast selection, and more importantly convenience for their customers. Therefore, with these strong qualities, the company continues to grow as a world-class web commerce giant. Also, among Amazon’s advantages is its infrastructure.
Analyze Amazon.com using the competitive forces and value chain models. How has it responded to pressures from its competitive environment? How does it provide value to its customers? a) Competitive forces analysis i) Entry of competitors It is easy for competitors to enter the market by establishing an e-shop and Amazon laid the groundwork for competitors (Flat World Business, n.d). However, Amazon has advanced websites and high brand recognition that other competitors may not reach its level.
By 1997 Amazon.com was the first online retailer to boast one million customers. As the company expanded its product line, it developed an ecosystem rooted in the wholesale purchase of goods, huge strategically located fulfillment centers; and contracts with national and regional carriers who shipped its products throughout the U.S. and to other
The strategic issues of Amazon indicates that its strategic position requires a shift from increasing market share and growth to achieving higher profitability if it wants to be competitive in the future. However their strategic capabilities and core competencies such as technological infrastructure, software development, inventory control and economies of scope has enabled high competitive advantage which presents the opportunities to undertake new investment options to overcome challenges to facilitate achieving greater profit margins and keeping ahead of