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Strategic analysis of amazon
Strategic analysis of amazon
Essay about amazon leadership
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Amazon is one of the biggest companies today. Everybody heard of Amazon. A lot of people started online shopping and selling due to Amazon. They are the biggest international electronic ecommerce company. They have been taking out other companies and businesses due to their popularity and success. An example can be is the retail company like Best Buy isn’t doing so great due to online shopping. Their current biggest competition is Amazon. To compete against Amazon, Best Buy offers price match but it’s still not enough. A company like Amazon has to have great leadership in order to be successful at this level. For any business or company to succeed, it must have great leadership. Amazon employees whether they are a manager or individual contributor, you are an Amazon leader.
Amazon has several leadership principles. One of them is customer obsession. A company cannot succeed if it doesn’t pay attention to their customers and doesn’t earn their trust. Leaders are owners and they must focus on long term. They have to think outside the box. You have to follow the leaders at Amazon. They have a lot of knowledge, a lot of experience, and have good understanding of what it takes for a business to succeed. Leaders at Amazon are expected to way new ways to help conduct their business. Leaders must be capable of bringing the right person to their team. Leaders help develop other leaders. The leaders at Amazon must have high standards and keep on raising the standards. They always need to think big.
The leaders at Amazon need to think smart and efficiently when it comes to decision-making. So many companies and businesses have failed due to bad decisions. The money and the budget that the company has needs to focus on the over...
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...something other companies should pay attention to.
Reference
Amazon. Search for Jobs. 2014. http://www.amazon.com/gp/jobs.
CASE STUDY: The Management Style of Amazon's Jeff Bezos... . October 10, 2013. http://www.hrcapitalist.com/2013/10/case-study-the-management-style-of-amazons-jeff-bezos.html.
Centerforworklife. Leadership Qualities of Jeff Bezos. http://www.centerforworklife.com/leadership-qualities-jeff-bezos/.
Shetty, Netra. Leadership Style at Amazon.com. May 6, 2011. http://www.managementparadise.com/forums/foundation-human-skills-f-h-s/221314-leadership-style-amazon-com.html.
Rosoff, Matt. Why Everybody In Seattle Suddenly Wants To Work For Amazon Read more: http://www.businessinsider.com/why-everybody-in-seattle-wants-to-work-for-amazon-2012-1?op=1#ixzz302fxc2EQ. http://www.businessinsider.com/why-everybody-in-seattle-wants-to-work-for-amazon-2012-1?op=1.
History”, n.d.). But the unbelievable pace at which Amazon added new products and new customers proved to be a formidable barrier for any competitors. Within the first 10 years Amazon accomplished an unbelievable feat; it had 49 million customers and 6.9 billion dollars in revenue, and it had done so by selling some products at a loss to build market share (Rivlin, 2005). At times it was difficult leveraging so much capital to grow market share, but Jeff Bezos’ focus on the customer and long term growth of the company proved to be the real reason Amazon didn’t fall prey to the .com bust like so many other internet
Amazon.com’s US operation business model is based on “sell all, carry few”. Amazon offers consumers a wide selection of products while keeping inventories at low levels. A major interest for Amazon in the US is optimization of netwo...
How Amazon Survived the Dot-Com Crash to Rule the Cloud. (n.d.). eWEEK at 30: Retrieved from http://www.eweek.com/cloud/eweek-at-30-how-amazon-survived-the-dot-com-crash-to-rule-the-cloud.html
Growth is core to Amazon.com's business strategy, and that has had a significant impact on the way they use technology: growth through more categories, a larger selection, more services, more buying customers, more sellers, more merchants, and more developers, increasing the different access methods, and expanding delivery mechanisms. The impact has been on many areas: larger data sets, faster update rates, more requests, more services, tighter SLAs (service-level agreements), more failures, more latency challenges, more service interdependencies, more developers, more documentation, more programs, more servers, more networks, more data centers. A large part of Amazon.com's technology evolution has been driven to enable this continuing growth, to be ultra-scalable while maintaining availability and performance.
Amazon is best known for their kindle, fast shipping, and selling various products (Smith). With Amazon being such a large corporation, professionalism, academics, character, and engagement are crucial parts of the success of the company. Professionalism: Amazon has grown to become the largest internet-based retailer in the world by total sales. It began as primarily an online bookstore and soon began to sell more and more electronics and then over time began to sell pretty much anything. In 1998, Amazon earned about $0.6 billion, which held steady growth from 1998-2006 (“Amazon.com”).
Since the creation of Amazon in 1995, it has been a reference of adopting a successful strategy which has preserved over time; being the largest online store in the world nowadays. In addition, i...
Amazon’s macro-environment is made up of six external factors: political, economic, environmental, technological, social, and legal conditions. These factors are important because they shape how the company operates and you must know each piece to be able to compete within the retail and eCommerce industry. An evolving political factor are the efforts the government has made toward punishing offenders of cyber-crime. This kind of thief wasn’t walking into your store, but hacking into your computer. This type of crime wasn’t possible before the internet. The government has started to take these crimes more serious as technology evolves. Technology is a factor that Amazon.com must invest heavily in. They are reliant on having top of the line technology to survive against cyber-crime and to stay relevant in the tech world. ECommerce is everywhere now and competition is very high. This brings in legal conditions; Amazon must know what laws exist in which countries because they are a
Customer service is paramount at Amazon and Bezos consistently reminds employees that their focus needs to consider the impact and feeling of the consumer. He is known to be an outside the box thinking daring to be bold and go against the norm. Utilizing drones to reduce delivery times while minimizing costs display Bezos focus on customers and stakeholders (Amazon Prime Air, n.d.). Bezos is a task-oriented transactional leader, who Brad Stone in his book “The Everything Store: Jeff Bezos and the Age of Amazon”, described Bezos as a micromanager who does not value the opinion of his employees (Stone, 2013). These individuals excel in achieving goals and positive outcomes but need improvement in human relations. Bezos tends to be bold and brash and not warm and fuzzy, and empathy is a critical component to others buying into your vision (Schwartz, 2015). He often becomes frustrated at his employees and berates them publicly; an unusual approach for an individual who built an amazing company. A company built on fear and stress looks beautiful from the outside but internally could quickly collapse if Bezos does not address his communications approach. Corporate culture is vital to the long-term future of business and Bezos needs to recognize how he leads the internal customer will translate over to the external consumer. Managing through fear and
Amazon has been able to maintain sustainable competitive advantage based on three operational strategies. These are low cost-leadership, customer differentiation and focus strategies. Low cost-leadership is pursued by Amazon by differentiating itself primarily on the basis of price. By offering low prices to customers Amazon ensures its future success. Partially modifying the costs of lowering prices over time through achieving higher sales volumes, negotiating better terms with suppliers, and achieving better operating efficiencies. Amazon makes sure that it offers the same quality products as other companies at a considerably cheaper price. Another strategy that Amazon has is its fast delivery service and there are many delivery services that one can choose from. With Amazon Prime, there are certain, but many products that have free two-day shipping. Also, with Amazon Prime, there are many offers specifically for people that have Amazon Prime. For example,
Amazon has recorded a magnificent success in its business throughout the years that it has been in operation. It has attracted almost all people to use it when necessary. Amazon has built its success in business methodically and slowly. Amazon has made much success because of its ability to read market trends and diversify its operations. It started as an online book selling company. However, it changed its operations and started selling other products. Currently, many large retail shops use Amazon to host and power their websites, for instance, sears and virgin megastores. Amazon now attracts over fifty million visitors in a period of one month. Amazon has tried to make their services fit each individual user. It has based its services on the end user. It has shipping discounts, customer product reviews and a credit card with bonuses. It also has prime membership, product forums and 1-click ordering system among other services. The company has tried to make a remarkable experience for customers and visitors (Thomas, 2006).
Amazon.com creates value for its customers by offering customers broad array of products to select from through their website and ensuring timely delivery of products to exhibit high level of commitment towards their business and customers
Amazon is the world’s largest retailer online. Founded in 1994 it has started as an online bookstore but soon expends its catalog with software, video games, electronics, furniture, food, toys etc.
Firstly, Amazon.com employed the cost leadership strategy by offering products and services at lower costs than competitors. The key to making this strategy successful were the economies of scale that allowed the company to offer the largest range of products to its customers.
When Amazon.com first began in 1995, as strictly a book retailer, Bezos knew he had discovered an excellent company. After all, a physical bookstore cannot stock anywhere close to the number of books Amazon can offer online. Within a year, the company had a customer base of approximately 340,000 consumers and daily site visits were huge as well. But Bezos wanted to expand the company to offer music and DVDs, because he realized there was little or no barrier of entry. In the next years Amazon would emerge as a marketplace, expanding the company globally offering products from toys to kitchenware. Because of the relatively cheap prices Amazon was offering and also the growing number of online shoppers, the company was doing tremendous amounts of sales and creating profits.
Another part of Amazon’s retail strategy is to serve as the channel for other retailers to sell their products and take a percentage of cut of every purchase. Amazon does not have to maintain inventory on slower-selling products. This strategy has made Amazon a ‘long tail’ leading retailer, expanding its available selection without a corresponding increase in overhead costs.