{ AMAZON }

Large Business Road Ahead

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Meet Our Team

OGL 355: Leading Organizational Innovation

Tim Krul

Large Business Road Ahead

Comprised of Guadalupe Rodriguez, Melanie Roemer, Sara Van Pelt, and Rianna Welles
Professor Pandya– Arizona State University
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Table of
Contents
• Introduction to Amazon’s
Mission and Vision
• Organizational Structure
• Leadership
• Competitive Advantage
• SWOT
• Environmental Analysis
• Strategic Options for Existing
Locations
• Recommended Strategies
• Addendum
• References

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Vision & Mission

Mission Description:
“To leverage technology and the expert
employees to provide our customers
with the best shopping experience on
Vision Description:
“Our vision is to be Earth’s most customer-centric
company; to build a place where people can come
to find and discover anything, they might want to
buy online” (Farfan).

the Internet” (Farfan).

Organization
al Structure

(Dudovskiy, 2018)
Organizational
Structure
Organizational
Structure
Amazon Leadership Philosophy

Vocally Self Critical

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Competitive Advantage
What sets Amazon
above the rest

Amazon is currently the biggest online retailer

in the U.S. and is continuously growing

Amazon’s prices are becoming increasingly

difficult for other ecommerce businesses and
store to beat.

The low cost of shipping has proven to be

favorable amongst Amazon’s buyers.
(Amazon Now Has, 2018)
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Competitive Advantage Con’t.

What sets Amazon above the rest

● Amazon places immense pressure on their vendors to

offer the best pricing possible, otherwise they are at
risk of not being able to take advantage of the same
volume created by Amazon.

● Due to Amazon’s incredibly wide variety of goods they

offer, it acts as a “one-stop shop,” which appeals to
consumers.

● Amazon’s biggest competitive advantage is their

customer service and convenience of product delivery.
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SWOT Analytics

Strengths Weakness Opportunity Threat

Low shipping cost and fast delivery
Superior quality products and services
Charismatic Leader/CEO/Founder
Wide variety of products
Seasonality Create and sell more of its own Online attacks
Low profit margin products Customer privacy lawsuits
Selling at low margins Physical locations Payment processing chargebacks
Mostly online presence More brand awareness Package theft
Return rate of products
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Environmental Analysis

{ EXAMPLES OF ORGANIZATIONS THAT CONTRIBUTE TO AMAZON’S

COMPETITIVE RIVALRY }
Alibaba Group: China’s Biggest Online Commerce Company and also a global shipper (What is Alibaba, n.d.).

Netflix: The world’s leading internet entertainment service (About Netflix, n.d.).

Best Buy: Multinational retailer selling entertainment products and services through retail & mobile locations
(Best Buy Co., n.d.).

Walmart: World’s largest retailer (About us, n.d.).

Target: 8th largest retailer in the US (Target Corporation, 2019).

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Environmental Analysis
{ EXAMPLES OF KEY COMPETITORS TO
AMAZON }
Buyer Power: Moderate. Buyers can often get best prices and most convenient shipping options from
Amazon, but also have the option of buying in the moment at competitive brick and mortar retailers.

Supplier Power: Low. Amazon’s volume is so significant that suppliers are forced into ensuring that they are
highly competitive, so that they are able to benefit from Amazon’s volume.

Threat of New Entry: Low. Entry at a level that would give Amazon’s volume a run for its money would be
incredibly cost prohibitive and risky.

Threat of Substitution: Moderate. Shoppers looking for a specific item could cherry pick a supplier among
several choices. Amazon’s power is in the convenience it offers consumers through its critical mass of variety.
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Strategic Options for Existing
Locations
● Physical Retail Locations
○ Amazon books
○ Pop-Up
○ 4-Star

● Prime Now offers local options for

buyers who want to support local
businesses
○ Whole Foods Market
○ Amazon restaurant delivery
○ Shop local stores
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Recommended Strategy
● In regards to India, Amazon may focus on
several strategies to eliminate competition and
take advantage of global opportunities.

● Amazon may need to consider lowering

membership prices and rely on advertising to
drive revenue, similar to other Indian streaming
sites, to remain competitive.

● We recommend Amazon be very

aggressive in gaining access to local and
regional broadcasting for their popular shows,
as opposed to focusing on a more global
entertainment model.
 Addendum
15 things you didn’t know about Amazon:  https://www.youtube.com/watch?v=rTiKHrbyL1I

Jeff Bezos Revealed: Building Amazon One Box at a Time

https://www.youtube.com/watch?v=tfAhTtBlb2Q

Amazon.com As Fast As Possible: https://www.youtube.com/watch?v=Azam166PWyo

 References
About Netflix. (n.d.) Retrived from https://medianetflix.com/en/about-netflix

About Us. (n.d.) Retrived from https://corporate.walmart.com/ourstory

Amazon Now Has Nearly 50% of US Ecommerce Market. (2018). Retrieved from
https://www.emarketer.com/content/amazon-now-has-nearly-50-of-us-ecommerce-market

Bharti, R. (2018, October 09). Learn From Amazon's Leadership Principles. Retrieved from http://whartonmagazine.com/blogs/learn-from-
amazons-leadership-principles/#sthash.wqbQcKxg.dpbs

Best Buy Co., Inc, Company Profile (n.d.) Retrieved from http://www/vault.com/company-profiles/retail/best-buy-co, -inc/company-
overview.aspx

Dudovskiy, J. (2018, August 04). Amazon Organizational Structure - Research-Methodology. Retrieved from
https://research-methodology.net/amazon-organizational-structure-2/

Farfan, Barbara. “Why Amazon.com Continues to Be the Top Internet Retailing Company.” The Balance Small Business,

www.thebalancesmb.com/amazon-mission-statement-4068548.

https://nanookjoe.wordpress.com/2017/10/09/amazon-com-organizational-complexity/

https://www.slideshare.net/guptushar/amazon-org-structure-study-and-proposal-for-entry-in-india]

Target Corporation. (2019). Retrieved from https://en.wikipedia.org/wiki/Target_Corporation

What is Alibaba? (n.d.) Retrieved April 22, 2019, from https://graphics.wsj.com/alibaba

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FOR
WATCHING ! }