Directional Strategy Of Amazon

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Recommended: What are the chief elements of Amazon’s overall competitive strategy? How well do the pieces fit together?Is the strategy evolving

I. Corporate strategy Directional As far as directional strategy of amazon.com is concerned, it possesses a well-organized management layer to take care of all managerial issues within the company. Hiring experienced managers with proven track records in blue-chip companies on key positions of the company is one of key component of directional strategy of amazon.com (Chan, Lee and Tharam). The directional strategy of the company focuses on practices that can best serve its customers, and on the team that possess proven ability for execution of business goals. The founder and CEO of the company, Jeff Bezos, has clarified his vision of effective leadership by pushing the concept as well as operations of the company through various critical strategic phases. The diversification of e-tailing products and services is an exemplary move to highlight the directional strategy of the company (Combe). Portfolio analysis For now, three businesses are registered in Amazon’s portfolio. Analysis of all these businesses is given in the paragraphs below. Online Retail During early days of its establishment, Amazon appeared as an online retailer of books only. However, with the passage of time, the company expanded its operations rapidly in music and movies. Market reputation and popularity ultimately made Amazon the biggest online retailer of electronics and household goods. This rapid expansion has made Amazon "Earth's Biggest Selection" of cost-effective products (Dennis and Harris). As an online marketplace, Amazon is enjoying a revenue stream without needing any warehouse to keep the product stock. Internet Services Due to great interconnection with its retail and Kindle ecosystem line of b... ... middle of paper ... ...ing developers and businesses an easier way of distributing content to end users while sustaining low latency, high speed of data transfer, and no commitments. Amazon Fulfillment Web Service Merchants can access the world-class fulfillment capabilities of Amazon via Amazon Fulfillment Web Service (Amazon FWS). This service provides a simple web services interface to the merchants who can send the information of their orders to Amazon with specific instructions for fulfilling customer requirements on their behalf. All the above mentioned alignment strategies of Amazon depict that the company will continue to develop the IT systems that can support its Kindle e-book reader, which is a new product of the company. Further advancements are expected to be taken specifically for the online Kindle Book Store and the related "Whisper net'" wireless distribution network.

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