6.

Amazon major goals

1) Business growth
2) Maintain a competitive advantage in the market

To achieve business growth

Strategy Action step Person/s year completion evaluation

Product This intensive is done Marketing 2008 They still use The financial
development by increasing the department this strategy team
research and studies
on the product evaluated this
development which Financial strategy by the
can lead to fast department number of
release on the retail sales
market
increasement

Amazon 1. If the The 2001 They still use The customer

flywheel consumers management this strategy service team
are of the evaluate this
satisfied strategic strategy by
content making sure of
and had an
the customer
enormous
The marketing satisfaction
(and department and by the
steady) increasment of
shopping the overall
experience The delivery traffic on the
on the department website
website
they will
constantly
do it again
and also
suggest it
to their
friends .
which will
create
traffic on
the
website.
2. The
producers
definitely
will follow
 traffic as
they want
to show
their
product in
the face of
customers
3. More
producers
means a
wider
range of
product
selection.
4. The wider
the
selection
range is
means
consumers
are more
satisfied
(better
experience
)

To achieve a sustainable competitive advantage in the market

strategy Action step Person/s year completion evaluation

frequently When Amazon Problem 2000 The company This strategy is
entering into was solving teams still uses this evaluated by
new niches established in strategy until market share
and segments 1997 it used to now leadership as
to the website only sell books Amazon web the more the
today it looks services niches the
for anything more people
that can be rely on
sold on the Amazon to
internet. The satisfy their
logistics needs
Amazon has
gives the
organization a
 big
competitive
advantage ,
this advantage
allows the
organization to
connect in a
wining
business
diversification,
the
organization
also fined new
niches and
segments by
accident ,
while looking
for solutions
for the
problems in
the way of the
business
The consumers When Amazon The users Couple of This strategy is This
generated was firstly themselves years after still used in this management
reviews established the Amazon was company of the
employees invented organization
wrote the evaluate this
reviews for any strategy by the
product they amount of
used to sell users reviews
even though on products
some of the
reviews were
not positive
and gave
annoyed
reactions , the
producers of
the product
told the
organization
that their job
was only to sell
the product
but the
management
thought that if
Amazon had
 more
consumers
generated
reviews than
any other
organization it
would lead to
a competitive
advantage

7) evaluation
The evaluation of the strategic plan process and outcomes

7.1) Formative evaluation

formative evaluation happens a lot in Amazon organization, as they want to make sure that the goals
and objectives get done and aligned with the time given for each which is the criteria the evaluation is
done with in this company, also the evaluation is done for the upper management as it is a pretty simple
evaluation statement to overlook the work process, formative evaluation will always be needed when
there is a new objective or goal that needs to be done

All the objectives and goals in Amazon strategic plan are being formative evaluated multiple times
during the organization lifetime but every time the amount of benefits is being raised

The formative evaluation information help the organization know more about how real the goals and
objectives could be and it helps making future strategic plans in Amazon

What needs to be done during this stage is trying to maximize the efficiency and the effectiveness of the
goals and objectives and make a more reasonable timeline for the future and the management always
desist the focus on the short term growth of Amazon

Amazon formative evaluation is aligned with the vision and mission and the values we talked about
before and that what gives Amazon a competitive advantage

7.2) Summative evaluation

In Amazon summative evaluation happens typically with “Web lab” the internal
experimentation platform of Amazon ,the evaluation is done to give reports for the
departments especially when the objectives are not done and the plans need change the main
policies in the summative evaluation in Amazon is to consider the goals and ideas as assets and
when the objective fails it must fails fast so the organization can earn knowledge and skills
Amazon operational plan and work process and annual reports are fully used in the
implementation of the strategic plan as they are the cornerstone of the Amazon work strategy

The feedback the organization gets from the summative evaluation is used in making sure that
the future strategic planning will be done in the right way with zero defects so Amazon can
maintain its competitive advantage

All the values that Amazon used until now were absolutely right and never went wrong and the
advantage of these values as the chief executive officer of Amazon said Jeff bezos they are
flexible and easy to change in the future if there is a need for it as we are in an rapidly changing
environment