Amazon Case Study Paper

Amazon is a world-famous company that operates online offering retail and other services, as well as its own products. The firm has grown rapidly because of wise strategies and leadership. This paper aims to analyze the company and its strategies and provide recommendations for further success.

Amazon has efficient strategic leadership, and it is clear from its growth and development processes. Managing the strategy process is effective at all stages from setting goals to evaluation, and the company is growing quickly. Strategies mainly target innovation and new ventures. Amazon has huge benefits in growth and development, because it always focuses on developments and new markets. Managing the strategy process is based on innovations offered by Amazon. It enables the company to operate in different markets, being among the market leaders. Its online shop offers new experience, such as convenience for customers and additional services that competitors do not have. Innovation is also in products sold to customers. Amazon has covered many types of products, and only a small share of online retailers take a risk of so many product categories. The firm also has developments in online multimedia and book selling services, as well as electronic devices to read its books and for other purposes.

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In order to understand the firm better, it is necessary to conduct external and internal environment analysis. The first one focuses on the main competitors of Amazon and their products. They all are large companies that are powerful enough to have large market shares and operate globally. Apple is Amazon’s competitor in terms of electronic devices and multimedia products. The company offers convenient and innovative technologies, such as iPod, iPhone and iPad. In addition, it provides multimedia download services and sells apps for its devices. This company has a competitive advantage over Amazon due to its famous brand and loyal customers. Google is another serious competitor. It is an owner of Android and OS for tablets and smartphones. In addition, Google sells multimedia and apps for the latter and provides book-reading services. It has recently introduced its own electronic devices. Google seems to have a competitive position similar to Amazon. In the online retail sphere, a serious competitor is Chinese company Alibaba that offers a wide variety of products that can be purchased online and delivered worldwide quickly. Its competitive position is similar to Amazon’s one. In terms of the external environment, the latter is also influenced by political factors, technologies, society and economies of countries where it operates.

The internal environment of Amazon includes its operations, executives, employees and resources. Leaders of the company are talented and do their best to contribute to the growth and development, in particular, via innovations. They inspire employees to work hard to reach goals. Financial resources of the firm are huge and growing. Due to that, the stock price is increasing as well. Other resources, including human ones, present strengths of Amazon as well. It has large inventories that include goods sold online and powerful intangible resources, such as patents received for its innovations and new products. Amazon operates in different spheres. The company owns a large online store with a wide variety of products. It sells multimedia and offers its own devices. Amazon also delivers such services as advertising, cloud computing, Fire TV, Amazon Kindle, comparison shopping, online bookstore, and others. Thus, it can be stated that all internal factors of Amazon are beneficial for it and represent strengths of the company.

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Amazon is a prospective and powerful company, and it should select some strategies to continue its success, growth and development. They should include differentiation, cost leadership and integration. The first one is used by Amazon effectively because it offers products that are unique and not available from competitors, for instance, new devices and new online selling services. Cost leadership is a good strategy as well. Due to high volumes of sales, Amazon can cut its costs by buying bulk amounts of goods for a lower price or by spending less on the trade personnel due to the automation of some processes. Drone delivery introduced recently can help to cut delivery costs. Thus, Amazon can become a cost leader in the market offering cheaper goods. The integration strategy, including acquisitions, can be used as well. The firm operates in different markets and can integrate its data and divisions for successful operations.

Innovative and strategic entrepreneurship should be continued as well. Due to innovations, Amazon has grown and reached more markets and customers, and it would be wise to use this approach, because the company has enough power and resources. Innovation should be part of strategic entrepreneurship of Amazon. It can be recommended to examine more prospective niches for innovations and take them. In terms of strategic entrepreneurship, Amazon seems to be successful and is recommended to continue following this strategy. It sets goals and reaches them. Amazon provides a good analysis of its environment and adapts is goods and services to it. The company formulates and implements clear strategies in different directions, as well as evaluates and controls its performance. Thus, Amazon can continue its strategic entrepreneurship approach. In terms of strategic leadership, the company is successful as well, because it communicates its goals and values to employees and reaches them.

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To summarize, Amazon is a company that operates worldwide. It is successful, produces many new products and innovations and grows quickly. Amazon can be recommended to continue its success via special strategies, in particular, differentiation, cost leadership, integration, innovation and strategic entrepreneurship.

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