Business 189 – Professor Shirley

Presented By: Alma Rios, Jeremy lacsa, José R.

Vigil, Farhaad Sheikh, Kunal Patel
Agenda
o Introduction
o EFE Matrix
o IFE Matrix
o IE Matrix
o SWOT Matrix
o Quantitative Strategic Planning Matrix
o Recommended Strategy
o Organizational Structure
o Organizational Culture
o Product Positioning Map
o Target Market
o Strategy Evaluation Report

Jeremy
EFE Matrix
Key External Factors Weight Rating Score

Opportunities

The number of buyers over the internet is

0.25 4.0 1.0
growing

Forecasting increase in US ecommerce 0.2 4.0 0.9

Threats

eBay, OverStock (NewEgg, CDW, etc) 0.35 4.0 1.4

Government regulations and instability on

internet products and sales in international 0.05 1.0 0.05
economies.

Low market entry barriers 0.15 2.0 0.3

Totals 1 3.65

Jeremy
IFE Matrix
Key Internal Factors Weight Rating Score

Strengths

Customer Relationship Management 0.18 3.0 0.6

Strong Focus on R&D

0.20 3.8 0.84

Diverse Products 0.13 2.5 0.375

Logistical advantage
0.15 4.0 0.76

Weaknesses

High Debt Ratio 0.16 2.9 0.58

Risk of Introduction of Wrong New

0.09 1.9 0.19
Category

Free Shipping affects bottom line 0.09 2.7 0.27

Total 1 3.615

Jeremy
 IE Matrix

Strong Average Weak

(3-4) (2.0-2.99) (1-1.99)

High
II III
(3-4)

Medium
IV V VI
(2.0-2.99)

Low
VII VIII IX
(1-1.99)

Jeremy
 SWOT Matrix
Opportunities - O
1. The number of buyers over the
internet is growing
2. Forecasting increase in US
ecommerce
Threats - T
1. Growth potential of direct
competitors (eBay, Overstock
Newegg, CDW, etc.)
2. Government regulations and
instability on internet products and
sales in international economies.
3. Low market entry barriers
Strengths - S
1. Customer Relationship
Management
2. Strong Focus on R&D
3. Diverse Products
4. Logistical advantage
SO
S4O2 - Use logistic advantage to
reach consumers in new countries
S1, O1 - Increase human interaction
within the website.
S1O2 - Provide a loyalty program to
provide an incentive to both new and
existing members
ST
S1T1 - Maintain a strong relationship to T1,W1 - Increase Bond offerings to
increase consumer loyalty.
S2,T3 - Set up affiliates with mom and T1,W2 - Capitalize on Government
pop shops for brick and mortar in
store buying
Weaknesses - W
1. High Debt Ratio
2. Risk of Introducing a New Product
or Service
3.Free Shipping affects bottom line
WO
O1,W3 - Leverage Amazon Prime
subscriptions to absorb the cost of
free shipping.
O1,W2 - Create an online school that
provides certifications
WT
gain further lead over competitors.
use of cloud services to form
relationships.
Jose
 Quantitative Strategic Planning Matrix
Establish a loyalty
Increase human program to provide Create an online
interaction within further incentive to school that provides
the website. both new and existing certifications
members
Key Factor Weight AS TAS AS TAS AS TAS
Strengths From IFE
Customer Relationship Management 0.18 4.0 0.72 4.0 0.72 4.0 0.72
Strong Focus on R&D 0.20 2.0 0.40 2.75 0.55 4.0 0.80
Diverse Products 0.13 0.0 0.00 3.0 0.39 4.0 0.52
Logistical advantage 0.15 0.0 0.00 0.0 0.00 0.0 0.00
Weaknesses From IFE
High Debt Ratio 0.16 0.0 0.00 0.0 0.00 1.0 0.16
Risk of Introduction of Wrong New
0.09 3.0 0.27 2.0 0.18 1.0 0.09
Category
Free Shipping affects bottom line 0.09 2.0 0.18 2.3 0.21 1.0 0.09
Sum of Weights 1.00 1.57 2.05 2.38
Opportunities From EFE
The number of buyers over the internet is
0.25 4.0 1.00 4.0 1.00 4.0 1.00
growing
Forecasting increase in US ecommerce 0.20 4.0 0.80 4.0 0.80 3.0 0.60
Threats From EFE

Growth potential of direct competitor 0.35 3.0 1.05 3.5 1.23 3.0 1.05

Government regulations and instability

on internet products and sales in 0.05 1.0 0.05 1.0 0.05 2.5 0.13
international economies.
Low market entry barriers 0.15 3.0 0.45 3.0 0.45 3.0 0.45
Sum of Weights 1.00 3.35 3.53 3.23

Sum of Total Attractiveness Score 2.46 2.79

Jose 2.80
Final Recommended
Strategy
 Introduce Online Certification Course for Amazon
Vendors – Amazon University
 Expand & Grow!
 Unrelated Diversification
 Strategic Alliance with the University of Phoenix
 Teach Amazon Vendors how to be effective by offering
 Logistics, Customer Service, & Transactions

Jose
 Current Organizational Structure
(Multidivisional Structure)
Board of
Directors

Jeff Bezos
Corporate R&D Founder and Corporate HQs
CEO Staff

CEO
CEO CEO CEO CEO
Business
Marketing Operations Development Editorial
Expansion

Advertising
Communications Warehouse Ops.
Strategic Business development Software design, Web site design
Customer Service
Relationships New product & development and Editorial content
Special Orders
service development maintenance Book features
Customer Programs

Krunal
Proposed Organizational Structure

Krunal
 Amazon Leadership
Principles
 Customer Obsession
 Ownership
 Invent and Simplify
 Are Right, A lot
 Hire and Develop the Best
 Insist on the Highest Standards
 Think Big
 Bias for Action
 Frugality
 Vocally Self Critical
 Earn Trust of Others
 Dive Deep
 Have Backbone; Disagree and Commit
 Deliver Results
 What’s it like to work for
Amazon?
 For a Senior Manager? Employee’s are treated as
absolute equal in the work place.
 For an Engineer? It’s draining.
 For a Warehouse Employee? White Collar sweat shop

Farhaad
Amazon Culture Improvement
Proposal
 A continuous seeking of the optimal balance between
flexibility and control (Work-Life Balance)
 Responsibility and personal empowerment
 Commitment to one’s group, the company and to
one’s fellow citizens

Farhaad
Product Positioning Map

Higher Quality

Lower Price

Alma
Product Positioning Map - Proposed

Higher Quality

Lower Price

Alma
What stage do you think the E-
commerce market is in?
Current Target Market

Shoppers
 Early Majority Internet shoppers
 College Students
 Price conscious shoppers
 Early adopters (kindle)
Sellers
 Third party retailers
 Online sellers
Developers
 Web developers

Alma
New Target Market

Shoppers
 Late Majority and Laggard Internet Shoppers
 Early Majority Internet shoppers
 College Students
 Price conscious shoppers
 Early adopters (kindle)
Sellers
 Current Low Performing Sellers
 Third party retailers
 Online sellers
Developers
 Web developers
Alma
 Balanced Score Card

Area of Objectives Target Target Primary

Deadline Responsibility
Growth 15% Increase Q4 2014 Marketing
•Improve sales through Amazon Service
certification incentive Revenue

Quality 85% positive Q4 2012 Marketing/

•Reinforce to customers the customer- survey Customer Support
driven vision

Innovation Create Q3 2013 Research &

•Provide an online certification program curriculum with Development/
for users University of Management
Phoenix
Consumer Confidence 75% of sellers Q4 2014 Marketing
•Ensure customers that Amazon sellers are certified
are certified and trustworthy

Jeremy
 Balanced Score Card

Area of Objectives Target Target Primary

Deadline Responsibility
Growth 15% Increase Q4 2014 Marketing
•Improve sales through Amazon Service
certification incentive Revenue

Quality 85% positive Q4 2012 Marketing/

•Reinforce to customers the customer- survey Customer Support
driven vision

Innovation Create Q3 2013 Research &

•Provide an online certification program curriculum with Development/
for users University of Management
Phoenix
Consumer Confidence 75% of sellers Q4 2014 Marketing
•Ensure customers that Amazon sellers are certified
are certified and trustworthy

Jeremy
Conclusion

Jeremy
Q&A
References