Amazon.com or simply Amazon is an online based retail store that sells a variety of products from books, DVDs to Kitchen appliances and a host of other products. Up until recently though, Amazon had only been established as an online retail store for ordering books. However, the company’s business has since diversified to include various products that can be accessed or viewed on the site and their purchases made. This paper analyses three aspects of Amazon’s operations over the years, first, it delves into its corporate strategy, secondly, it evaluates its business strategy and finally it also addresses the company’s functional units.
Foremost, the company’s corporate strategy is based on innovation with the aim of creating convenience for the customer. In this respect, the online based retail website was established for the sole purpose of easing customer’s experience in shopping for books. It offers services such as book reviews and commentaries which serve to aid clientele in decision making regarding purchasing of the books. Eventually, the business’ innovative strategy led to the revolution of operations leading to the introduction of DVDs and other products sold on the site. Amazon became a convenient way for shoppers to buy what they need without having to visit a local retail store to make a physical purchase. To stay ahead of the competition differentiation was paramount for Amazon, in this regard, affordable prices offered on Amazon served to lead price range among competitors in the industry. Further, the company’s corporate strategy was also built on investment in people mainly staff that catapulted the company to success.
Secondly, the profile of the company cannot be complete without an analysis of its business strategy. To this end, Amazon’s business was targeted at profit maximization through strategic partnerships. Hence, to ensure that costs incurred in deliveries are undercut, Amazon established partnerships with local retail stores to make deliveries on orders and shared profits with them. These partnerships are regarded as horizontal since they end in a win-win situation for both Amazon and its partners. However, the company also engaged in expansions that incorporated acquisitions of Information Technology websites and rebranding them. It took place in several regions across the world such as Germany and the United States. Eventually, the company was able to expand its coverage of the marker horizontally.
Finally, the overall functional unit of the company was as a result of developing teams among staff members. The main purpose of team development is for the intention of pooling efforts towards the enhancement of innovation among team players. In this regard, the company has developed groups of individuals who work together in innovative teams to develop ideas that can build the business and expand it. Centrally, the innovative ideas are based on simplifying and making enticing the customer experience of visitors/shoppers to the Amazon.com website. Similarly, the company is focused on employee motivation and to achieve this the chief executive has made it possible to employees to own a 105 stake of the company. As a result, employees feel valued and work innovatively to improve the performance of the firm since they regard their input as directly influential to their individual success.
Essentially, the profile of the company reveals that the pillars of its success are based on its business strategy, its corporate strategy and its overall functional unit. Amazon is a promising company in terms of growth based on its domination over the competition and lead in the industry. Its success is attributable to the three areas presented namely; its functional unit, business strategy and corporate strategy.
Free Case Study On Amazon Case Analysis
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WowEssays. (2020, March, 13) Free Case Study On Amazon Case Analysis. Retrieved November 22, 2024, from https://www.wowessays.com/free-samples/free-case-study-on-amazon-case-analysis/
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"Free Case Study On Amazon Case Analysis." WowEssays, Mar 13, 2020. Accessed November 22, 2024. https://www.wowessays.com/free-samples/free-case-study-on-amazon-case-analysis/
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"Free Case Study On Amazon Case Analysis," Free Essay Examples - WowEssays.com, 13-Mar-2020. [Online]. Available: https://www.wowessays.com/free-samples/free-case-study-on-amazon-case-analysis/. [Accessed: 22-Nov-2024].
Free Case Study On Amazon Case Analysis. Free Essay Examples - WowEssays.com. https://www.wowessays.com/free-samples/free-case-study-on-amazon-case-analysis/. Published Mar 13, 2020. Accessed November 22, 2024.
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