Amazon Organizational Structure

Amazon organizational structure can be classified as hierarchical. Senior management team include two CEOs, three Senior Vice Presidents and one Worldwide Controller, who are responsible for various vital aspects of the business reporting directly to Amazon CEO Jeff Bezos. There are seven segments such as information technology, human resources and legal operations and heads of segments also report to Amazon CEO.

Hierarchical structure emerged due to the immense size of the business. According to estimations, 43% of all online retail sales in the US went through Amazon in 2016.[1] Amazon market value of USD 355.9 billion is greater than sum of market capitalizations of Walmart, Target, Best Buy, Nordstrom, Kohl’s, JCPenney, Sears, and Macy’s.[2]

The figure below illustrates Amazon organizational structure:

Amazon Organizational Structure

Amazon.com Inc. organizational structure

It is important to note that despite its large size, unlike many other companies with hierarchical organizational structure, Amazon remains highly flexible to adapt to frequent changes in the external marketplace. Moreover, the online retail giant leads changes in external business environment, has caused disruptive innovation in e-commerce and currently is about to cause a disruptive innovation in global logistics industry. This is mainly due to visionary and efficient leadership by Amazon founder and CEO Jeff Bezos.

It can be forecasted that with the acquisition of Whole Foods for USD13.7 billion announced in June 2017, Amazon organizational structure is going to change in the foreseeable future.  Moreover, due to the company’s adherence to business diversification strategy in an aggressive manner, its organizational structure will remain dynamic, being subjected to certain changes in a regular manner.

Amazon.com Inc. Report contains a full analysis of Amazon organizational structure. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Amazon. Moreover, the report contains analyses of Amazon leadership, business strategy and organizational culture. The report also comprises discussions of Amazon marketing strategy and addresses issues of corporate social responsibility.

Amazon.com Inc. Report

 

[1] Amazon accounts for 43% of US online retail sales (2017) Business Intelligence, Available at: http://www.businessinsider.com/amazon-accounts-for-43-of-us-online-retail-sales-2017-2

[2] Desjardins, J. (2016) “The Extraordinary Size of Amazon in One Chart” Visual Captalist, Available at: http://www.visualcapitalist.com/extraordinary-size-amazon-one-chart/