Amazon.com Inc. was founded in 1994 in Washington and Amazon.com website became first active in July 1995 to become the largest online retailer in the world to offer Earth’s Biggest Selection in less than two decades. The world’s largest online retailer and the 2nd largest e-commerce company after Alphabet Inc. (Google) with a brand value of USD 176 billion, Amazon enjoys a high level of customer loyalty and more than 50% of customers are repeat buyers (Annual Report, 2016).
Employing 341,400 people worldwide, Amazon generated net income of USD 2,37 billion and USD 0,596 billion in 2016 and 2015 respectively. Amazon operating income totalled to USD178 million, USD2.2 billion, and USD4.2 billion for 2014, 2015, and 2016 respectively (Annual Report, 2016). Amazon has declared its adherence to four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence and long-term thinking. These principles represent sources of Amazon’s competitive advantage.
Amazon business strategy is a hybrid of cost leadership and business diversification. The online retailer also benefits from encouraging communication between various elements within its ecosystem and promotion of its leadership principles consisting of 14 points discussed in this report.
Combination of pragmatist, visionary and autocratic leadership styles are exercised at various levels at Amazon. The company has a hierarchical organizational structure, nevertheless, it remains highly flexible to adapt to frequent changes in the external marketplace. Amazon organizational culture, on the other hand, are based on the principles of high level of cost-consciousness, constant reinvention and improvement of organizational culture and customer obsession.
Major weaknesses associated with Amazon include seasonality of the business, low profit margins and lack of focus on product or service categories. Moreover, a weak competitive position of Amazon’s Fire Phone and damage to the brand image due to tax avoidance scandal in the UK can be listed as weaknesses of Amazon.
Amazon.com Inc. Report contains 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’s business strategy, leadership and organizational structure and its marketing strategy. The report also discusses the issues of corporate social responsibility.
1. Executive Summary
2. Business Strategy
4. Organizational Structure
5. Organizational Culture
6. SWOT Analysis
7. PESTEL Analysis
7.1 Political Factors
7.2 Economic Factors
7.3 Social Factors
7.4 Technological Factors
7.5 Environmental Factors
7.6 Legal Factors
8. Marketing Strategy
8.1 7Ps of Marketing
8.2 Segmentation, Targeting & Positioning
8.3 Marketing Communication Mix
8.3.2 Sales Promotion
8.3.3 Events & Experiences
8.3.4 Public Relations
8.3.5 Direct Marketing
8.3.6 Personal Selling
9. Porter’s Five Forces Analysis
10. Value-Chain Analysis
10.1 Primary Activities
10.1.1 Inbound Logistics
10.1.3 Outbound Logistics
10.1.4 Marketing and Sales
10.2 Support Activities
10.2.2 Human Resource Management
10.2.3 Technology Development
11. McKinsey 7S Framework
12. Corporate Social Responsibility (CSR)
12.1 CSR Programs and Initiatives
12.2 CSR Criticism
List of Figures
Figure 1 Amazon.com Inc. organizational structure
Figure 2 Amazon Prime subscriber growth worldwide
Figure 3 Changes in annual lobbying budget in Amazon
Figure 4 Amazon annual global marketing expenses
Figure 5 Amazon Porter’s Five Forces
Figure 6 Amazon value chain analysis
Figure 7 Amazon McKinsey 7S model
List of Tables
Table 1 Amazon SWOT analysis
Table 2 Amazon segmentation, targeting and positioning
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- Published: July 2017
- 11573 Words
- 45 Pages