Tables of Contents

1.0 Executive Summary

1.1 Report objectives

1.2 The Strategic Drift.

1.3 Amazon.com Overview

.6

2.0 Analysis

2.1 External Analysis

2.1.1 PESTEL Analysis

2.1.2 Industry and competitor analysis.

10

2.1.3 Competitor Analysis......................................................................................

13

2.1.4 Global Internet Trends..................................................................................

15

2.1.5 GE Matrix....................................................................................................

17

2.2 Internal Analysis............................................................................................. 18

2.2.1 The Value Chain........................................................................................... 18
2.2.2 Resource Based View....................................................................................

20

2.2.3 Financial Analysis......................................................................................... 21

2.3 Summary of Analysis.......................................................................................

24

2.3.1 SWOT Analysis............................................................................................. 24

2.3.2 Key strategic issues to be addressed............................................................... 24
3.0 Generation of options.........................................................................................

26

3.1 TOWS Matrix................................................................................................... 26

3.2 The Ansoff Matrix............................................................................................ 27
3.3 Strategic Options............................................................................................ 28
3.3.1 Strategic Option 1: Market Development.........................................................

28

3.3.2 Strategic Option 2: Service Development........................................................

29

3.3.3 Strategic Option 3: Product Development........................................................

30

3.3.4 Strategic Option 4: Market Penetration in China...............................................

31

3.3.5 Strategic Option 5: Market Development.........................................................

32

3.3.6 Strategic Option 6: Market Development into Scandinavia................................. 33

4.0 Choice process....................................................................................................

35

4.1 Evaluative Criteria........................................................................................... 35

4.2 Evaluative Criteria........................................................................................... 36
4.3 Strategic Choice/Justification.........................................................................

37

5.0 Implementation..................................................................................................

39

5.1 Marketing Strategy..........................................................................................

39

5.2 Merchant Program...........................................................................................

39

5.3 Configuration.................................................................................................. 40
5.4 Structure.........................................................................................................

40

5.5 Processes (controls)....................................................................................... 43

5.6 Balanced scorecard......................................................................................... 45
5.7 Relationships.................................................................................................. 46

5.8 Gantt Chart..................................................................................................... 47

5.9 Stakeholder Management................................................................................

49

5.10 Monitoring Success.......................................................................................

51

6.0 Critique of strategy.............................................................................................

52

6.1 Financial..........................................................................................................

52

6.2 People.............................................................................................................

52

6.3 Legal Issues....................................................................................................

52

7.0 Conclusion.......................................................................................................... 52
8.0 References.......................................................................................................... 53
Appendix 1: Current Product Portfolio..................................................................

57

Appendix 2: Competitor Analysis..........................................................................

58

Appendix 3: Top 20 countries with highest number of internet users................... 64

Appendix 4: - Amazon.coms SWOT Analysis......................................................... 65
Appendix 5: Extract from 2006 Company Report and Letter to Shareholders........
Appendix 6: PESTEL Analysis of China...................................................................

68

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