Amazon Strategic Management
Part 1- INITIAL STRATEGIC POSITION
1. Introduction
Amazon is the world’s biggest online retailer company, which was founded in 1994 by Jeff Bezos. (Jopson, 2011). It started with an online bookstore, and later expanded its business to other areas with more kinds of products and services such as electronics, computers, clothes, and Merchant Program, etc. Besides, Amazon.com has its subsidiaries around the world, and they are in United Kingdom, Canada, Japan, China, Germany and France.
1a strategic positioning
Strategic positioning is to positively impress customers with the products, image, and the brand of the business, which supposed to be an beneficial option for business development. For company, it is a strategy which can lead them to the right way. Amazon has three strategies to sustain its competitive advantage, which are low cost-leadership, customer differentiation and focus strategies.
Firstly, Amazon is an online retailer with providing dozens of categories of product, and they choose cost-leadership strategy which offers the same quality products as other companies at a considerably cheaper price, so Amazon created great value through providing customer experience; secondly, Amazon use customer differentiation strategy to provide current and potential customers with differentiation through quality, design and convenience, with customer differentiation strategy, Amazon provides current and prospective customers with differentiation through design, quality or convenience by selecting a strategy that is different among the competitors; finally, Amazon concentrate on outstanding customer service as a niche but not the entire market for each niche has its own needs and demands (Porter, 1985).
PESTEL framework
provides a integrated contents of effects on the possible success or failure of particular strategies. It stands for Political, Economic, Social, Technological, Environmental and Legal. (Thomas, 2007) For political environment,
1. Introduction
Amazon is the world’s biggest online retailer company, which was founded in 1994 by Jeff Bezos. (Jopson, 2011). It started with an online bookstore, and later expanded its business to other areas with more kinds of products and services such as electronics, computers, clothes, and Merchant Program, etc. Besides, Amazon.com has its subsidiaries around the world, and they are in United Kingdom, Canada, Japan, China, Germany and France.
1a strategic positioning
Strategic positioning is to positively impress customers with the products, image, and the brand of the business, which supposed to be an beneficial option for business development. For company, it is a strategy which can lead them to the right way. Amazon has three strategies to sustain its competitive advantage, which are low cost-leadership, customer differentiation and focus strategies.
Firstly, Amazon is an online retailer with providing dozens of categories of product, and they choose cost-leadership strategy which offers the same quality products as other companies at a considerably cheaper price, so Amazon created great value through providing customer experience; secondly, Amazon use customer differentiation strategy to provide current and potential customers with differentiation through quality, design and convenience, with customer differentiation strategy, Amazon provides current and prospective customers with differentiation through design, quality or convenience by selecting a strategy that is different among the competitors; finally, Amazon concentrate on outstanding customer service as a niche but not the entire market for each niche has its own needs and demands (Porter, 1985).
PESTEL framework
provides a integrated contents of effects on the possible success or failure of particular strategies. It stands for Political, Economic, Social, Technological, Environmental and Legal. (Thomas, 2007) For political environment,