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Business Strategy for Amazon

Date

Business Strategy for Amazon

In the contemporary society, Amazon has grown to become the largest online store

allowing for retail of products. From the inception of the company, the performance has been on

the upward trend due to our great leadership structure that has invested on invention, innovation

and cutting of costs to ensure maximum returns for the company and its shareholders. To

enhance the company’s performance, Amazon operates through the application of an economic

model that allows for economies of scale leading to process re-engineering and diversification

(Onyusheva, and Seenalasataporn). Initially, the firm started as a retailer of books where all

books are uploaded and clients can get both hard and soft copies. Our company’s goal is to

continue leading in the online retail business through the flagship of new products and services

while benefiting from economies of scale.

Amazon’s main goal is to solve challenges that clients and potential markets face hence

the need for more funds. Amazon wants to invest more on research and development and

introduce new products. With the company being the largest, we need to continue enjoying the

large market economies, market subscriptions and business leadership (Majed et al.). Through

organized logistics, Amazon has been able to control its market share through a complex web of
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logistics to ensure that our customers after ordering their products they are delivered in time.

Moreover, through partnerships with suppliers, each location or town, has set logistic partners

that deliver the products to the client. Technology has been the backbone of the company with all

the successes of the firm being pegged to research and development. In the contemporary

society, there have been many new market entrants that have copied amazon’s business model,

however, as an early entrant, the company has continued to enjoy its global support from the

market.

Funding of the company by potential investors, will help the firm leapfrog into new

market segments and introduce more products. With the already existing market base, potential

investors are ensured of their returns on investment and growth of their portfolio. At amazon we

have been able to leverage both internal and external advantages over the competitors hence no

threat of competitors. The market base has been growing at a positive rate an assurance of the

continuous support to the business model in operation (Onyusheva, and Seenalasataporn).

Additionally, the company is targeting to establish more products as the global markets keep on

changing. The firm’s main goal as we advance into the future, is to become a one stop shop

where clients can buy any product or service from our online stores and large discounts from the

comfort of their homes or offices and have an immediate delivery.

Artificial intelligence has come in handy to the business where, clients get product

suggestions due to the history in the system on their earlier purchases. Also, the website is easy

to use where clients can search a wide range of products. A more contemporary approach is still

under consideration where a client will be able to use voice commands to request for products.

Customer service excellence is key and to actualize all these plans, the firm requires additional

funding. Through AI, the firm can give a list of suggestions that enables to drive our sales high
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will maintaining existing client base. Despite the company’s leadership in the market, we are

targeting to expand even into a more agile business model, a large product and service base to

ensure that anything legal in each jurisdiction globally, can be sold on our online retail stores.

Both new and return clients, are able to enjoy large discounts to ensure that the brand sustains

itself.

Amazon from its inception, has been a fruitful and profitable venture with an upwards

trajectory of growth an assurance to all shareholders and potential investors. Also, through lean

management, we have been able to maintain low costs of operations, afforded to pay all costs,

make profits and give our clients large discounts. Potential investors will recoup their investment

within a very short period and if still interested be able to re-invest back in the company and get

more finances (Majed et al.). The management is keen in creating wealth for the shareholders

and investors. Funding of the new business proposition will propel the business to new heights

and separate the company completely from the competitors. The challenge of competition will

have been eliminated completely and be a threat to the competitors.

In conclusion, more funding to the business is necessary to support the expansionary

measures that will be backed by research and development. Research and development will

allow Amazon to introduce new products and advance into new market segments while

maintaining the existing client base. Despite the large discounts that the company offers to its

clients, the business has remained to be a profitable venture due to the economies of scale

Amazon enjoys. Also, the business has been able to maintain low costs of operations through a

complex web of operations and partnerships for logistics.

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Work Cited

Majed, Sadq et al. "Analyzing the Amazon Success Strategies". Journal of Process

Management. New Technologies, vol 6, no. 4, 2018, pp. 65-69. Centre for Evaluation in

Education and Science (CEON/CEES), https://doi.org/10.5937/jouproman6-19264.

Accessed 8 Nov 2021.

Onyusheva, Irina, and Tanatthon Seenalasataporn. "STRATEGIC ANALYSIS OF GLOBAL E-

COMMERCE AND DIVERSIFICATION TECHNOLOGY: THE CASE OF

AMAZON.COM INC". The Euraseans: Journal on Global Socio-Economic Dynamics,

no. 1(8), 2018, pp. 48-63. International College Suan Sunandha Rajabhat University,

https://doi.org/10.35678/2539-5645.1(8).2018.48-63. Accessed 8 Nov 2021.