Professor: Dr. Danette McGee
Course: Bus 499 Business Admin. Capstone
• Company Background
• Company Overview
In 1997, Amazon started off as an online book store and went ahead to delve into other electronics gradually till it became a very huge online store that deals in almost every product.
The company’s ecosystem plays a major role when it comes to the financial profits earned at the end of the year. The ecosystem of any company forms the core of all the activities that the company carries out.
In the case of Amazon, its ecosystem is mainly made up of analysts, information marketers, writers, application developers, merchants and reviewers. The company has also focused on strengthening its ecosystem due to the growing speed of the company.
In recent years, the company has been expanding into other countries and thus it is very crucial for the company to ensure that there is harmony among the workers of the organization. Strengthening the ecosystem has also made it possible for the company to continue with its rapid growth while at the same time providing quality service more efficiently.
The company also greatly values customer relations over all other company values. This long term goal ensures that it strives very hard to answer all questions that the customer might come up with.
The aim of the company to become the most customer eccentric company in the world has really helped to diversify the company. This is mainly done with coming up with various products that the customers might want and selling them at a very cheap price. In addition to this, the company sometimes offers free delivery to its customers to improve the number of sales that it gets in a specific area.
Amazon’s mission is to become the most customer-centric company in the world
This also couples as its vision.
Impact of the company objectives
• Impact of Mission Statement
• Impact of Vision Statement
The company has grown consistently as a customer centric company.
The company is among the largest online retail stores in the world.
The company has consistently given quality service to its customers.
Everything that the company does is usually for the benefit of the customer mostly.
Stakeholders of the company
• Primary stakeholders
• Secondary stakeholders
There are various stakeholders that affect the functioning of the company.
Primary stakeholders include the financers, customers and employees.
Secondary stakeholders on the other hand refer to the government, society and other parties at large.
Impact of primary stakeholders
• Efficiency of company
• Financial position of company
The primary stakeholders have helped a lot in the efficiency of the company.
Amazon strives a lot to be customer eccentric and this is only made possible by analysis of feedback from customers
The management also ensures that it effectively leads the company towards streamlining its value chain to offer better service.
The financers also play a major role in the company by giving the company all the equity that it requires for the development of new products and expansion to untapped areas (Smith, Rupp, & Offodile, 2017).
SWOT analysis looks at all the strengths, weaknesses, opportunities and weaknesses that affect the company directly.
A SWOT analysis aids in decision making and efficient planning for any company.
Strengths of Amazon
• Efficient management
• Knowledge and experience
• Large capital reserves
• Huge online presence
• Efficient delivery systems
The main factor that has contributed to the growth of the company globally is the presence of an intricate system of management. For any company that wants to grow, a lot of investment must go into its management. It is the management that is responsible for all the decisions of the company. Amazon’s management enables it to conduct globally due to the vertical integration of the management. A lot of emphasis is also made on teamwork to make all divisions and departments in the company work well (Diehl ; Bishop, 2017).
Amazon also has very deep knowledge of the trade that it deals in. This factor makes it stand above the rest companies due to the vast experience that it has in the industry. In addition to this, the company has very many investors due to the profits that it makes each fiscal year. This has made the company to have large capital reserves (Diehl ; Bishop, 2017).
The large capital reserves have also enabled the company to acquire many acquisitions all over the world in order to aid in their activities. The great company has acquired companies like Zappos.com, Junglee.com thus making it move several strides ahead in its own industry. The acquisitions have also expanded the company globally and also made it possible for it to increase its customers due to the goodwill that the acquired companies had (Diehl ; Bishop, 2017).
Amazon also harbors a very huge presence online due to the vast number of online stores that it commands. Initially the company started off as a bookkeeping store but with the emergence of technology it decided to move its operation online. This proved to be a success making the company able to venture into other products as well other than books. Having a great online presence enables the company to be able to reach thousands of customers (Diehl ; Bishop, 2017).
Amazon also harbors very efficient delivery systems that set it apart from other online retailers in the industry. This has been achieved by the use of strategic partnerships making it to reach customers on a global scale without any trouble. The delivery distribution channels are so efficient that in some parts it offers delivery options for free of charge (Diehl ;Bishop, 2017).
• Development of unwanted products
• Bad Public relations
• Extensive network
The company has some weaknesses that have been dragging down the mission of the company.
Amazon has started attracting bad publicity for evading of taxes. This has tainted a bad name for the company in the public. Some customers have also lost a little bit off faith in the company.
In addition to this, the company is also making great losses in some countries due to its extensive network. Amazon prides itself in being cheap and this is negatively affecting the company as it is incurring losses while delivering products. Furthermore, the company is also struggling from low profits in the countries that it has recently invested in for example India (Diehl ; Bishop, 2017).
Another key weakness is the fact that Amazon has launched some products that have failed miserably for example the fire phone. This makes a lot of investment go to waste when the product is not received by the targeted market as expected. These miserable fails leave an extensive mark on the capital that amazon has (Diehl ;Bishop, 2017).
• Food delivery
• Housing opportunities
The company can also try out delivery of foodstuffs in order to increase its competitive advantage.
Just recently, it took diversification to a whole new level. The company started Amazon Home services.
The platform enables customers to order and pay for local professionals to come and help them out in their duties.
This has really set the company apart in terms of competitive advantage by making sure that it enters into an area that has not been tapped into by other online stores.
• Company reputation
• Small price differentiation with physical stores
The greatest external threat to the company is its reputation. It should try as much as possible to engage the public through the use of public relations campaigns and corporate social responsibility.
The company has very small price difference when compared to other stores. Hence, people prefer to walk into a store and buy the goods rather than wait for days for it to arrive at their doorstep.
Business Level strategies
• Cost differentiation and diversification
• Brand development through customer preferences
To increase its strengths, the company could use these two strategies.
The first strategy is to use its strengths to formulate more opportunities for the company. For example, the company can use the large number of investors to open up new branches and outlets in the world. In addition to this, the large capitals can also work as collateral for goods that fail. The investors can also help out in paying off debts that the company has and thus clear its name that is being tainted due to debts.
The second strategy that the company can use is turning the weaknesses that it has into opportunities. For example, the company can try and look into the goods that fail and come up with goods and products that the customers actually want. In addition to this, public relations can also be used to clear Amazon’s name that wants to be tainted due to lack of paying taxes. This move will make the company generate more recognition in the public and consequently more improved sales.
It is clear that amazon is highly dependent on the diversification strategy as the main corporate level strategy. It incorporates other corporate strategies with diversification to ensure that it improves its competitive advantage in the market. This is a very good choice for the company if it still wishes to stay afloat in the retail industry. However, for the company to last longer it can try and add a few strategies. The company can take diversification higher by investing in cloud based services. In addition to this, its activities can be taken globally not just internationally and lastly, mainly focus on diversification in areas that yield higher margins to the company.
• Have an action plan
• Have necessary contacts at hand
• Have all resources available
The company should have present activation guidelines for crisis.
This avoids a lot of time being wasted in the formulation of ways of dealing with the crisis. In addition to this, the company should have effective communication channels that will help the company in time of the crisis.
The company should effectively communicate to its employees, stakeholders and customers to avoid too much probing into the issue. Communication puts everyone at rest despite the extent of the crisis.
The company should also have a contact list of all experts that might prove essential in management of any crisis as it saves a lot of time. An action plan already in place helps the company respond swiftly and lastly, having all resources available in case of a crisis is also essential.
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Hill, C. W., Jones, G. R., ; Schilling, M. A. (2015). Strategic management theory. Cengage Learning,.
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Mazzei, M. J., ; Noble, D. (2017). Big data dreams: A framework for corporate strategy. Business Horizons, 60(3), 405-414.
Smith, A. D., Rupp, W. T., ; Offodile, O. F. (2017). Amazon. com, Inc.: Retailing Giant to High-Tech Player?.