1. Amazon’s strategy was growth and in this, they were “customer-centric”.

CEO Jeff Bezos was focused on offering customers the widest selection dominating with price leadership and pleasing customers through continual shopping convenience. Amazon’s strategy was the utopia for the 3 horizons of strategy in that: • • • Horizon 1 which comprised of their core business (physical media) had to be extended Horizon 2 comprised of acquisitions and alliances totally more than 6 during the 2007 to 2010 era alone Horizon 3 to have a greater and diversified product offering to support the core of the vision “Earth’s most customer-centric company” As depicted in Jeff Bezos’ original strategy in 2005, Growth was the centrifugal force driving the strategy for the years to come and was evident through the numerous acquisitions and innovations of Amazon.com, Source: Amazon.com. (online). 2010. Available http://www.wikinvest.com/stock/Amazon.co m (Accessed 15 March 2012) Amazon’s strategic position (context) was clearcut in the environment in which they traded. They knew the opposition and simultaneously, they knew their own strengths and weaknesses. They drove their basic purpose which was to be “customer-centric”. Further, Amazon’s strategic choices (content) included many acquisitions that allowed them to keep in line with their drive for innovation. International expansion supported their strategic choice. Evaluation forms were especially from 2007

depicting a 19 day value difference. 2010. The financial sector of Amazon’s strategic capability was through it’s extended payment terms with suppliers and short credit terms with customers wherein Amazon enjoyed approximately 26 days of value difference. What do you consider to be Amazon’s strategic capabilities? Amazon displayed dominance in all 3 areas of strategic capability. with one operating cycle indicated below.com to continually better themselves in order to see their strategy in action(process). 1. In the physical sector of resources. The people element of Amazon’s strategic capability was having the right people for the job. Source: Amazon. a former Walmart Vice-President was appointed as Chief Information Officer and he brought with him. Innovation was a big driver for Amazon’s strategy and the status quo was always challenged. Strategically aligned acquisitions and alliances enabled Amazon. Further. tons of knowledge on supply chain systems and logistics. Richard Dalzell. (online).com/stock/Amazon. 2. This competency was visible in the way in which Amazon invested heavily in software development and the rewards of which were evident in the growth of the consumer base. The environment was continuously scanned for Amazon to be ahead of innovation. Amazon’s data bases and computer systems allowed them to have competitive advantage in the industry.co m (Accessed 15 March 2012) 3. continuous shareholder investment allowed Amazon to invest in it’s key innovation requirements.wikinvest. Further recruitments had .com. Available http://www.sent out with all orders and this enabled Amazon.com to pursue technological development. 2.

in excess of US$1bn 2008 alone. Another 17 merchandise categories were added to Amazon’s core business of physical media. 3. Whittington and Scholes:2011) As evident from above. They were direct competition to Amazon’s original core business of physical media. acquisitions and alliances. Even the acquisitions and alliances were strategically conducted to ensure the aligned growth strategy. Innovation was to be the forefront of their diversification. leading the online shopping market through innovation) and clearly showed the threats (existing and newcomers to online shopping). BarnesandNoble. they furthered their deployment of leading innovation by investing heavily. It was going to be all about data driven automation which. By doing this. Apple.been done from AlliedSignal.com was a new online store after being one of the largest physical bookshops. Amazon’s environmental scan indicated many opportunities (by increasing the product range. while feeding Amazon the relevant Customer feedback. Amazon also employed it’s own internal strengths through it’s capabilities and quickly identified it’s weaknesses through it’s customer evaluation forms. was satisfying the Customer through more optimized experiences. . it had to offer it’s customers more than just one category of merchandise. This range offering enticed more customers globally and contributed to Amazon’s long term growth strategy and this is depicted in the comparison graph below. In order for Amazon to retain strong growth. Black and Decker. Delta Airlines and Microsoft (Johnson. Amazon tactically balanced their strategic capabilities which was crucial for them to deliver success in the competitive market.

More information about customers meant more offering to customers resulting in greater sales which meant higher growth levels. Available http://www.com case study (online).Source: Chaffey.com wants to lead in it’s market.wikinvest. especially the U. (online). Amazon. as indicated below: Source: Amazon.smartinsights.S which was starting to become saturated. Available http://www. through technology and innovation. 2010. At a point during 2007-2010. allowed Amazon to gain insight into their customer market which was key to gain more dominance in the market.g.com. 2012. international sales had overtaken North America sales in Amazon’s core category of physical media. Amazon’s international expansion enabled their diversification strategy to materialize exponentially. D. .com /digital-marketingstrategy/online-businessrevenue-models/amazoncase-study/ (Accessed 15 March 2012) Partnerships e.com/stock/Amazon.co m (Accessed 15 March 2012) A basic conclusion on Amazon’s diversification strategy cannot negate the fact that Amazon. with Toy R’ Us.

D.com case study (online).com/digital-marketing-strategy/online-businessrevenue-models/amazon-case-study/ (Accessed 15 March 2012) . 2010. Pearson Education Limited. Amazon.com. K. Whittington. England. (online). G. 2011. 2012. All this is to support it’s mission to become “Earth’s most customer-centric company”.wikinvest. References Johnson. Available http://www. The key to success for Amazon was the fact that it cleverly linked all it’s operational and business level strategies to it’s corporatelevel strategy thus aligning it’s multi-directional focus to one strategy. p576 Amazon. Exploring Strategy – Text and Cases 9th edition..by offering the widest selection of products at the right price and through unrivaled convenience. R.com (Accessed 15 March 2012) Chaffey.com/stock/Amazon. Available http://www. and Scholes.smartinsights.

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