STRATEGIC MANAGEMENT

Amazon Case Study

Submitted to Prof. Naeem Bhojani
Noshaba Kanwal
Amazon
Amazon Inc. is an American international e-commerce company. It was started by Jeffrey P. Bezos in the
year 1994. It is a world’s largest online retailer. When many .com companies were not able to survive
during the 90’s, Amazon managed to survive and is successful now. It is the 11th most searched site
around the world. Corporate Strategy began as one of the first major companies to sell goods over the
Internet Started as solely as an Online Bookstore. Due to success diversified into many other product
lines and services Multinational e- Commerce Company World's largest online Retailer Amazon’s
corporate goals,

After reading the given case study following points has been analyzed.

SWOT Analysis
From the SWOT analysis which was extracted by the given case study I have analyzed that Amazon has
several opportunities that it can exploit but it equally has several threats to struggle with like China.
Amazon solved the issue by acquiring Joyo.com which was the leading online store of China.

With the increased competition, differentiation is one of the strategy can exploit. Increasing the product
segment is also a good opportunity as it will give the company a wider customer base for its products
and services. One-way they can increase their segments is by creating more partnership. Over the years,
Amazon has tried partnering with large players which has not worked in some cases. Acquisitions have
worked for Amazon in the past and acquiring or partnering with manufacturers. This will give them a
competitive edge by reducing supplier’s power.

Porter’s Five Forces Analysis

In Amazon’s strategy, Porter’s Five Forces Model elaborating a rational roadmap for the firm’s strategic
intent..
By focusing on the threat of new entrants there is clear evidence that it might be impossible to replace
Amazon in the environment of online retailers. On the one hand, it seems easier for companies to enter
such markets because of the low entry barriers with the help of the internet. The apple and iPod have
captured huge market but still the revenues have enhanced due to growth in the customer base for the
e-books. In the era of digital devices and digital media Amazon.com has helped its e-readers to be
convenient but apple has sliced the market share of Amazon.com.
On the other hand, Amazon is one of the biggest players in the world markets with many years of
experience, endless resources, tremendous know-how and a high buyer loyalty, which is strengthened
by global advertising, an inimitable product differentiation and customer binding advantages through
offerings like Amazonprime.
 High Quality

Wal-
mart
Amazon

Low Price High Price

E Bay

Low Quality

Strategies
 Amazon may also elaborate a PESTLE analysis, which considers aspects that might influence a
business in its macro environment
 Amazon’s operations can continue expanding, based on the opportunities in the business
environment, as well as the company’s strengths. For example, the corporation can grow
through expansion into new e-commerce markets, especially in high-growth developing
economies.
 Amazon.com Inc. continues diversifying its business to further strengthen itself against industry-
specific risks.
 Another strategy can be developing new partnerships to extend market reach and highlight
Amazon’s multinational operations against competition and related strategic challenges.

Expected Outcomes
 In the present circumstances e shopping get a revolutionary change. So Expending company
based on opportunities into new commerce market give golden chance to get more strength.

 Amazon should also consider expanding its activities to other developing economies. Opening
physical delivery points in South Asian countries will improve its business throughout the world.
 By opening new distribution channels in South Asian countries its markets share will increase
and then can reduce the threat of competitors.
  In the end, it is all about the pricing and quality of products and that will become even more
important in the future that might influence a business because through this company get
customer loyalty in its macro environment