About fifteen years old, Amazon.com is an international firm specializing in retail internet marketing. The company has gone from a tiny business to a global retail powerh
Directions
Reviewing the instructor comments for all of the sections of your project paper, organize the document into a single file with a title page, abstract page and references page in APA format. Make changes to any earlier sections impacted by the information you gained as you conducted the strategic analysis. Add a final Conclusion heading with a summary paragraph.
The final project paper will have roughly 11-16 pages of double spaced body (plus title page, abstract page and reference page for a total of 14- 21 pages (not more than 24!). Title page, abstract, headings, cites and references, and font (Times New Roman 12) are to be in APA format.
Unit 8: Course Project- Final Paper
Directions
Reviewing the instructor comments for all of the sections of your project paper, organize the document into a single file with a title page, abstract page and references page in APA format. Make changes to any earlier sections impacted by the information you gained as you conducted the strategic analysis. Add a final Conclusion heading with a summary paragraph.
The final project paper will have roughly 11-16 pages of double spaced body (plus title page, abstract page and reference page for a total of 14- 21 pages (not more than 24!). Title page, abstract, headings, cites and references, and font (Times New Roman 12) are to be in APA format.
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AMAZON 1
AMAZON 4
Amazon
Rymario Armstrong
Park University
Stacy Yeager-Okosi
MBA695 Strategic Management
20220621
Course Project
Introduction
About fifteen years old, Amazon.com is an international firm specializing in retail internet marketing. The company has gone from a tiny business to a global retail powerhouse that provides a wide range of services (Chen et al., 2022). Customers and shareholders have been at the center of the company's corporate culture, and the company's products have been the focus of its marketing efforts to help it grow. There will be $386 billion in net sales for Amazon in 2021 and a projected $578 billion in physical and digital online gross goods volume for the company, making it a dominant e-commerce aggregator (Nasdaq, 2022). Amazon's cloud computing, storage, database, and other services, which account for 10% – 15% of total revenue, are followed by advertising services, which account for 5% of total income, and other sources, which account for the remaining 80% (Nasdaq, 2022). Amazon's non-AWS sales come primarily from international markets, with Germany, the United Kingdom, and Japan accounting for 25-30% of total sales. In 1994, Jeff Bezos founded Amazon.com Inc. as a bookshop and remained the company's founder and CEO. During the first year of business, the company launched online. It soon expanded its activities to include many products beyond books, such as music media (MP3 and DVDs), electronics, toys and other home goods. To fulfill its clients' different cultural and societal demands, the company rebranded itself as "Earth's Largest Selection."
Amazon.com Inc. made an initial public offering announcement in 1997, announcing its shareholdings. Since then, Amazon’s corporate culture has been centered on meeting the needs of its customers, which necessitates both innovative marketing and a strong focus on customer service. It presently has a customer base of almost 45 million people. The long-term performance of Amazon.com Inc. is influenced by the company's mission and vision statements. "Our vision is to be earth's most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online." The mission statement of Amazon is, "We strive to offer our customers the lowest possible prices, the best available selection, and the utmost convenience” (Gregory, 2022). According to the statement, customers can expect more from Amazon than simply addressing their requirements. The net income of Amazon based on the 2021 statistics is $33.364 billion, and the total assets of $420.549 billion. The number of employees as of 2021 is 1,608,000 (Nasdaq, 2022). There is high competition for the Amazon Company having a broad portfolio of products that include electronics, beauty, groceries, kitchen, baby, and jewelry, among others. Amazon expects to generate $116.44 billion and targets sales of $729.76 billion.
Problem Statement
Problem statement: Amazon Inc. is an ever-growing firm that requires regular advertisement, but the challenge remains that choosing the perfect advertisement is difficult since the firm deals with multiple products in different industries.
The problem of getting the best advertisement message that gets the audience of all the products is because the company has different potential customers for their wide and diverse nature of products. The advertising issue has made the work of the marketing team difficult because they are forced to consider having an advertisement message that relates to all the products that they have developed or consider developing advertisement for different products that is much more expensive (Chen et al., 2022). Handling advertisement ads for the various products that Amazon deals with is a hectic experience for the marketing team because more products have to be marketed and demands for their ads since they fall under different industries like electronics and food products.
References
Chen, H., Lachaud, K., & Zhou, W. (2022). The sales effect of “Free App of the Day” on Amazon Appstore: An empirical study. Digital Business, 2(2), 100020. https://doi.org/10.1016/j.digbus.2021.100020
Gregory, L. (2022). Amazon.com Inc.’s Mission Statement & Vision Statement (An Analysis) – Panmore Institute. Panmure Institute. Retrieved 21 June 2022, from http://panmore.com/amazon-com-inc-vision-statement-mission-statement-analysis.
Nasdaq. (2022). Amazon Inc. Retrieved 21 June 2022, from https://www.nasdaq.com/market-activity/stocks/amzn.
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STRATEGIC MANAGEMENT AMAZON 1
STRATEGIC MANAGEMENT AMAZON 4
Strategic Management
Rymario Armstrong
Park University
Stacy Yeager-Okosi
MBA695 Strategic Management
20220629
Strategic Management
Amazon.com, Inc. is a multinational e-business corporation that has its headquarters in the United States of America. It is currently the world's most popular internet shop. One of the world's most popular online retailers is Amazon.com, Inc. Customers can now access the company's services through the retail websites that the company owns and operates. For Amazon's seller customers, the company develops software that makes it simple to sell their products on both Amazon's site and their own. There is a lot of competition later in the Amazon Company where some brands are coming up and focus on a certain area of products like the nutrition supplements and the Bose headphones, reducing the market share for the firm (Adlucent, 2022).
Strategic Tools
SWOT is the main strategic tool I will leverage in handling the problem. It outlines the strengths, weaknesses, opportunities, and threats that Amazon is experiencing and the information applied for solutions (Dyer, 2016). There is a focus on trying to understand the weaknesses and threats the firm is experiencing and develop the best intervention in handling it, especially in areas where new entrants are giving good deals demanding that Amazon re-brand. On the side of opportunities and strengths, the focus is to maintain the strengths and invest in the available opportunities to remain competitive.
PEST Analysis is the second tool that targets exploring the threats and opportunities in Amazon, especially in the economic, social, technological, political, and environmental approaches. PEST Analysis considers the external factors as critical in assisting handle the competition issue that Amazon is experiencing. The tool help in looking for the external opportunities that would help the firm become competitive.
PARETO Analysis is the third tool that is adopted in the Amazon Companies, where the firm considers the 80:20 rule in showcasing the product decision-making. The tool is financial in nature, where 20% represents the input, and 80% showcases the output in terms of profits that the firm is generating (Dyer, 2016). Amazon has to put more effort into streamlining the shipping options and improving the service quality to increase its sales and become more competitive.
Tools considered and not used.
The Strategy Canvas is a tool that will not be used to differentiate the firm from its competitors, but this has been achieved so far in Amazon. Since there are upcoming firms' needs, Amazon needs to look for better opportunities to be more unique (Dyer, 2016). The tool is good for new firms in the industry.
Porters' value chain is the second tool that will not be used because Amazon is an already established brand and requires other strategic tools. The tool is good in identifying and describing the functions of the firm and its value.
References
Adlucent. (2022). The Top Three Amazon Challenges, And How To Solve Them. Adlucent. Retrieved 29 June 2022, from https://www.adlucent.com/resources/blog/the-top-three-amazon-challenges-and-how-to-solve-them/.
Dyer J.H. (2016). Strategic management: Concepts and tools for creating real-world strategy. John Wiley & Sons.
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2
Strategic Analysis
Rymario Armstrong
Park University
Stacy Yeager-Okosi
MBA695 Strategic Management
20220705
Introduction
Strategic analysis informs strategic decision-making (Chen, 2022). It shows probable possibilities and threats that ought to be considered in strategic decision-making, and it frequently delivers vital information about the evaluation and changes in the environment both inside and outside the organization. This paper will provide a strategic analysis of Amazon using SWOT analysis, 5 forces, and the PESTEL framework.
SWOT analysis
Strengths
Amazon, the most successful online retailer in the world, attributes its success mostly to a strategic initiative that focuses on cost leadership, distinctiveness, and focus. This initiative gives Amazon its competitive edge. In addition to having pricing that is affordable for all of its consumers and being honest with them, Amazon also offers a variety of payment and shipping alternatives that are tailored to meet the needs of each and every one of its clients on a global scale. This is yet another one of Amazon's many strengths.
Amazon is able to stay so far ahead of its rivals because the firm makes extensive use of advanced technologies and a platform that is both scalable and quick to ramp up. This keeps the company in a position of considerable advantage over its rivals. Amazon's notable brand awareness among customers all over the world is one of the company's most valuable advantages. Thanks to this familiarity, the company has been able to break into new areas that were previously inaccessible to the majority of e-commerce businesses. Amazon has an edge over its competitors because it is able to provide better customer fulfillment because of its stronger logistics and distribution systems (Chen, 2022). As a result of this, the organization has a greater degree of market dominance than its competitors.
Weaknesses
Amazon, like every other organization, has certain areas that need improvement, despite the undeniable success it has had. Some of them are the high taxes that they levy on each good, and it's possible that some of their items are priced a little higher than they would be in other stores. According to Vollero et al., (2021) their business model is just too open to interpretation, which makes it easy for other businesses to imitate it. Another one of the company's flaws is that it put the lives of many of its workers in jeopardy by subjecting them to harmful working environments which has sparked criticism. Amazon has an increasing amount of difficulty in vetting each product and ensuring the greatest possible degree of safety as the number of items it sells grows. Recently, EPA was forced to demand that the organization take down a broad variety of unsafe items and pesticides from its platform.
Opportunities
With the launch of its new online payment system, Amazon has the potential to significantly expand its business. This is especially significant when one considers the fact that customers' worries about the safety and confidentiality of their personal information while shopping online are among the most pressing concerns facing customers today. In addition, this would allow the firm to reap the benefits of using its own payment gateway, which would result in an increase in the company's margins. Another possibility that Amazon may focus on is the rollout of more items under its own brand rather than acting as a forwarding site for products from other parties (Jindal et al., 2021). Amazon also has the chance to increase its worldwide footprint and create additional locations in emerging regions. Doing so would unquestionably provide it with an advantage in the extremely competitive online retailing business.
Threats
Due to the political climate and the state of the economy in some countries, Amazon encounters obstacles when trying to sell and ship its products in such locations. It is also up against tough competition from Walmart and eBay, both of which are working hard to establish themselves as one of the most successful online shopping sites. Another threat arises because Amazon does not verify the authenticity of the products sold by its vendors, some sellers have taken advantage of this loophole to peddle counterfeit goods and mislead buyers into thinking they are purchasing an authentic product from a luxury brand (Jindal et al., 2021). Some customers have lost faith in Amazon, which will have an impact on the company's future sales. Some hackers have been successful in penetrating Amazon's system, which has resulted in the exposure of sensitive data belonging to Amazon's customers, including their addresses and card details. Because of this, the customer's safety and faith in the firm have been put in jeopardy. In spite of all that has occurred in the past, Amazon has ensured that it continues to build its system to be as safe and secure as possible for its consumers.
Summary
This tool shows the strengths weaknesses, opportunities, and threats of Amazon. Data collected using this tool can be very helpful in informing strategic decisions o the organization. Using this tool the organization should continue to maximize its strengths, minimize its weaknesses and take advantage of existing opportunities to further cement its position in the market.
5 Forces
Threat of new entrant
The threat of new entrants is low in this environment. Launching an online retail store is simple. However, any business seeking to reach or compete with Amazon on the same level is a task near impossible because of the extremely high investment that such an undertaking would require (Vollero et al., 2021). The organization further enjoys customer loyalty which stems from the first-mover advantage of being among the first big players in the e-commerce space. The organization further greatly benefits from economies of scale. A new organization can easily enter the market but it would find it difficult to gain benefits of economies of scale in a similar manner that Amazon does.
Bargaining power of buyers
The organization places a high degree of value on the satisfaction and experience of its customers. It ensures that the product it sells meets the required quality standards. The cutthroat nature of competition in this space, ensures customers are availed with too much power. The cost of switching is really low and substitute products are easily availed which gives consumers high bargaining power. The organization has a competitive advantage as it is able to offer customers a variety of different products under one roof and at reasonable prices making the shopping experience satisfying for most customers (Vollero et al., 2021).
Threat of substitute
The organization faces competition from other companies such as Walmart, eBay, and Alibaba. A major challenge in the category faced by the organization is the low switching cost which implies weak brand loyalty as consumers can easily switch to other platforms without seeing any significant loss in value. The majority of the products offered by the organization are not unique to the organization and can be easily found on other platforms. (Chen, 2022).
Bargaining power of suppliers
The barging power of suppliers is low to moderate. Amazon has superiority over its suppliers as it is the most renowned participant in the sector. There is no doubt that Amazon has a large number of suppliers, but such stakeholders have to adhere to what amazon dictates. According to Chen, (2022), the organization places a heavy focus on the ethical working practices of its suppliers and tries to enforce this via its supplier code of conduct.
Competitive rivalry
As previously established this space is highly competitive. The events regarding coronavirus did not help much as they led many organizations to shift their operations online hence intensifying competition. Walmart, Alibaba, Flipkart, eBay, and many more online retailers are among the organization’s most notable rivals (Jindal et al., 2021). Customers have the ability to switch from one vendor to another at a minimal cost, which puts further pressure on the organization. Substitutes are also easily available.
Summary
This tool has been used to showcase competitive forces existing in the retail industry. The data made available via this tool can be helpful to the organization as it enables identifying areas of the industry that remain attractive and adjusting strategies in order to maximize profitability. From this analysis, it is crucial for the organization to continue putting customers at the center of everything and improving their overall experience in order to remain a leader in the e-commerce space.
PESTEL
Political factor
The stability of the Amazon Company has been undermined by political pressures. Countries have their own set of laws and political ideologies; for instance, economically affluent nations like the United States and Australia have contributed to Amazon's expansion. Other nations, such as China, which has long been willing to assist local Chinese enterprises, have proved a barrier to Amazon's development in the region (Jindal et al., 2021).
Economic factors
Economic factors have an impact on the profitability of the organization. Some of these factors include the unemployment rate, foreign exchange rate, inflation, and cost of raw materials. The organization has reaped enormous benefits from economic stimulus measures that have resulted in an increase in the amount of discretionary spending held by consumers in the aftermath of the global coronavirus outbreak.
Social factors
Social factors account for the general views and attitudes of a populace which in most cases are connected to demographical and cultural trends (Vollero et al., 2021). These considerations will eventually define and subsequently, drive the behavior of consumers. Amazon has once again capitalized on a trend toward delivery methods that are easy, quick, and do not need physical interaction. Millennial customers are also driving the enormous increase in online buying since they are tech-savvy and comfortable using the internet.
Technological factors
The organization is highly innovative and leverages this to improve customer experience. Through continuous innovation, the organization is able to keep introducing new value for customers. The company has leveraged technology to secure payment, improve communication and enhance the privacy of its customers.
Environmental factors
There are increased concerns over the sustainability of companies. Amazon takes this seriously and is committed to promoting a sustainable environment. However, there is still more that the organization can do to reduce its green gas emissions across its distribution network.
Legal
The organization has operations in multiple countries. Different countries have different legal frameworks that guide business operations. It is crucial for the organization to adhere to government regulations such as tax obligations in order to avoid interference and ensure the smooth running of operations (Chen, 2022).
Summary
This tool shows that the company has been able to take advantage of the shift to online retail. However, as the company continues to extend its global reach the organization is exposed to new vulnerabilities. However, through continuous innovation and adherence to existing regulations, the company should be able to withstand the challenges arising from its external environment.
References
Amazon. (2021). US About Amazon. US about Amazon. https://www.aboutamazon.com/
Chen, B. (2022). Investment Value Analysis of Amazon. Applied Economics and Policy Studies, 301–308. https://doi.org/10.1007/978-981-19-0564-3_32
Dyer, J. (2015). Strategic management. John Wiley & Sons, Inc. https://www.wiley.com/en-us/Strategic+Management%3A+Concepts+and+Cases-p-9780470937389
Jindal, R. P., Gauri, D. K., Li, W., & Ma, Y. (2021). Omnichannel battle between Amazon and Walmart: Is the focus on delivery the best strategy? Journal of Business Research, 122, 270–280. https://doi.org/10.1016/j.jbusres.2020.08.053
Vollero, A., Sardanelli, D., & Siano, A. (2021). Exploring the role of the Amazon effect on customer expectations: An analysis of user‐generated content in consumer electronics retailing. Journal of Consumer Behaviour. https://doi.org/10.1002/cb.1969
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AMAZON ALTERNATIVES 1
AMAZON ALTERNATIVES 4
Amazon Alternatives
Rymario Armstrong
Park University
Stacy Yeager-Okosi
MBA695 Strategic Management
20220715
Strategic Analysis Alternatives
Alternatives
1. Allow opening of more warehouses
According to the company's historical analysis, it is expected to increase its profitability to recover from the numerous losses. The company can open more warehouses spread out across the globe so that there can be faster product delivery to clients. This strategic move is connected to the company's strength since it is the most successful online retailer globally. Amazon can afford to increase its portfolio by acquiring more international warehouses as it already has a reliable technological infrastructure. Finding enough finances to cover the company’s costs of increasing the portfolio is reliable, and competitors shall find the idea profitable. The move is highly strategic and requires improvements in all aspects to ensure the capability of remaining profitable regardless of external interference. The alternative suits the organization's mission of serving clients using physical and online stores (Comparably, n.d.).
2. Diversification of market segment
Analysis of the company’s market segment reveals the demographic factors of clients get affected by the weakness of high taxes levied on goods. The main clients of Amazon are people who aim to get faster product delivery. The company discovered this and thus can afford to handle the weakness through constant research in the market for service to diverse clients' needs. Competitors can view this as highly strategic and thus influence the company to acquire clients from global locations (Ferguson, 2017). Amazon can assess more products before posting so that the market segment analysis can promote higher standards for development. The company can thus attain its vision to become a customer-centric organization valid for better market development.
3. Branding improvement
At the moment, Amazon can improve its payment process by focusing on identifying customers suitable for its brand. This is highly strategic since it is possible to identify the company's clients and prepare their products according to their expectations. Amazon built the majority of its technology infrastructure based on the existing branding. Having its payment gateway shall allow Amazon to solve the current weakness connected to payments and thus attain better profit margins (Ferguson, 2017). The company further performed a practical analysis of its clients and discovered unstable markets that do not fit the expected profitability. This reveals the company's drive to acquire a return on investments. Amazon can thus afford to manage threats of any new entrants by holding its reliable branding and improving operations (Comparably, n.d.).
4. Change in Marketing Technique
Amazon's marketing strategy focuses on its clients' geographical location, age, interests, race, and income. Amazon ensures it acquires clients based on their demographic factors that would enable booking all rooms. It can thus afford to manage the bargaining power of buyers for the ultimate change in the profitability operations attained by the company. The market segment also focuses on clients' interest in corporate or leisure activities. Use of technology for advertising products based on online user activities, thus a reliable market process. This ensures an effective connection with Amazon's development since it can provide amenities suitable to all clients. Attain the company's mission, vision, and values are feasible since it integrates the highest standards in all business areas.
5. Niche marketing
This entails the identification of a specific market segment, usually the most lucrative, and tailoring the nature of the product as well as the marketing strategies to increase appeal to the identified segment. Amazon can integrate its online presence to manage the issue of the threat of substitutes using niche marketing. Since customers can switch to other platforms, Amazon's application of niche marketing can save its large market share (Ferguson, 2017). Therefore, the most promising avenues to maximize the marketing approach are based on either mass marketing or the more viable and complementary approach of segmented marketing as applied to consumers and potential local suppliers. Amazon can afford the change and deliver high-quality results for all customer segments.
6. Attain customer expectations
Understanding the customer needs helps determine how to position the product and which markets to prioritize. The customers' needs are the driving force that determines whether they will buy the service or product and hence engage the brand (Ferguson, 2017). Amazon already faces the political factor of hostility from other nations that aim to promote local industries. For this reason, it is imperative to promote customer expectations, so business managers can understand the need to work with Amazon. When the customer needs are not satisfied, there exists a gap between what is desired and what an organization is offering, and any other new product can come in to fill in the gap. Amazon can promote its mission and vision by committing to the operational excellence of constantly attaining customer expectations.
7. Better gift card strategy
The projected growth of the entire gift card industry for Amazon shows a healthy trend. The company can capitalize on this by conducting extensive market research that identifies the specific economic or industry segments in which gift cards are predominantly used. Amazon can diversify its social factors to deal with a big trend in customer expectations. Establish positive working relations both within and outside their respective industries of operations. Amazon can afford the existing operational method and capitalize on the expected growth through innovative promotional offerings. Attainment of the values for earning trust shall be possible by offering clients better services.
8. Influencer marketing
Social influences and celebrities constantly shape consumer needs; therefore, it is essential to consider influencer marketing so that the brand can grow in more geographical regions. Amazon can afford to pay influencers and thus attain consumer requirements like functionality, flexibility, performance, compatibility, and dependability. The legal aspects of business management shall not get interfered with since Amazon shall promote business development and further promote its mission and vision for passion for invention in the customer-centric business platform.
References
Comparably. (n.d.). Amazon Mission, Vision & Values. Retrieved 15 July 2022 from https://www.comparably.com/companies/amazon/mission .
Ferguson, E. (2017). Amazon.com Inc. Operations Management: 10 Decisions, Productivity. Retrieved 15 July 2022 from https://panmore.com/amazon-com-inc-operations-management-10-decisions-areas-productivity .
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2
Course Project- Strategic Analysis Recommendations
Rymario Armstrong
Park University
Stacy Yeager-Okosi
MBA695 Strategic Management
20220719
Problem
A major problem facing Amazon is high turnover rates at its warehouses. Many employees have quit working at the warehouses of the organization citing being forced to meet unrealistic performance quotas that are super-fast and mentally taxing to be covered within a 10-hour shift (Kantor et al., 2021). Repetitive and tedious tasks have the potential to increase worker boredom. The entire business, not just the employees, may be negatively impacted when there is a lack of motivation. Employees who are not motivated or engaged in their work are more likely to become bored or burned out as a result of a lack of prospects for advancement. In addition, when they simply go through the routines, burned-out employees are more likely to make mistakes, which leads to a decline in their performance appraisal since they are less engaged in their work. A decrease in involvement and an increase in mistakes both contribute to a drop in the overall work quality in the organization, which in turn slows the growth of the business (Kantor et al., 2021). It is estimated that workers who are bored or burned out are two times more likely to quit their jobs, leading to an increase in turnover and the cost linkages that come with it. This leads to the loss of potential income as well as a poor image of the organization, which in turn undermines the reputation of the company among existing stakeholders.
Recommendation
The major recommendation is for the company to mechanize repetitive tasks by making use of robots. The organization still heavily relies
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