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 70,9 billion, Amazon enjoys a high level of customer loyalty and more than 50% of customers are repeat buyers.
Employing 560,000 people worldwide and attracting 2 million sellers on its platform, the e-commerce giant earned USD 37 billion in Q4, 2017 alone, a 42% increase compared to a previous year. Total sales increased 27% and 31% in 2016 and 2017, compared to the comparable prior year periods (Annual Report, 2017).
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, Ansoff Matrix and McKinsey 7S Model on Amazon. Moreover, the report contains analyses of Amazon’s business strategy, leadership and organizational structure and ecosystem. The report also analysis marketing strategy, ecosystem and discusses the issues of corporate social responsibility.
1. Executive Summary
2. Business Strategy
4. Organisational Structure
5. Organizational Culture
6. Amazon and Ansoff Matrix
7. SWOT Analysis
8. PESTEL Analysis
8.1 Political Factors
8.2 Economic Factors
8.3 Social Factors
8.4 Technological Factors
8.5 Environmental Factors
8.6 Legal Factors
9. Marketing Strategy
9.1 7Ps of Marketing
9.2 Segmentation, Targeting & Positioning
9.3 Marketing Communication Mix
9.3.1 Print and Media Advertising
9.3.2 Sales Promotions
9.3.3 Events & Experiences
9.3.4 Public Relations
9.3.5 Direct Marketing
9.3.6 Personal Selling
10. Porter’s Five Forces Analysis
10.1 Threat of new entrants
10.2 Bargaining power of buyers
10.3 Bargaining power of suppliers
10.4 Threat of substitute products or services
10.5 Rivalry among existing firms
11. Amazon Value-Chain Analysis
11.1 Primary Activities
11.1.1 Inbound logistics
11.1.3 Outbound logistics
11.1.4 Marketing and Sales
11.2 Support Activities
11.2.2 Human Resource Management
11.2.3 Technology Development
12. McKinsey 7S Model
12.1 Hard Elements
12.2 Soft Elements
13. Amazon Ecosystem
14. Corporate Social Responsibility
14.1 CSR Programs and Initiatives
14.2 CSR Criticism
List of Figures
Figure 1 Amazon Organizational Structure
Figure 2 Amazon Ansoff Growth Matrix
Figure 3 Number of Amazon Prime members in the US
Figure 4 Changes in annual lobbying budget in Amazon
Figure 5 Amazon annual global marketing expenses
Figure 6 Amazon Porter’s Five Forces Analysis
Figure 7 Amazon Value Chain Analysis
Figure 8 Amazon McKinsey 7S model
Figure 9 Amazon Ecosystem
Figure 10 The ecosystem of Amazon Kindle
List of Tables
Table 1 Amazon SWOT analysis
Table 2 Amazon segmentation, targeting and positioning
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- Published: August 2018
- 13811 Words
- 57 Pages