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Amazon Strategic Plan
Transcript of Amazon Strategic Plan
Amazon has evolved in ways that enable them to be extremely competitive on price and efficiency.
Amazon has become the biggest online international retail store in the world with a loyal customer base of over 244 million shoppers.
Amazon was able to dominate the dot COM bubble, where many of other companies had failed.
Executing their Strategy
Amazon has done a great job executing their current strategy of pricing low to gain market share.
Amazon is able to dominate their strategy by offering customers an equally good or better product at a lower price or offering a low-priced, lower-quality product that give customers more value for their money.
Consumers often highly focus on price, which gives Amazon a competitive edge.
Ethical and Social Implications
Amazon expects all employees to always act lawfully, ethically, and in the best interest of the company.
The Code of Business Conduct and Ethics provides a guideline for all Amazon employees to help the determine what is expected of them
Amazon's Current Situation
Amazon has long pursued a strategy of winning by pricing low. Amazon's primary objective is to gain market share. With increasing their market share, Amazon in return can continue to reduce its costs with increasing the output of products.
Amazon also allows other retailers to sell their products, while taking a cut of every purchase. This has helped Amazon expand its available selection without having to increase in overhead cost.
Another approach Amazon has taken, is introducing the sale of used products through its seller marketplace.
Barnes & Noble
Largest e-commerce retailer
Superior quality service and products.
Economies of scope
Effective use of technology and partnerships
Only online presence
Selling at zero margins
Loss of focus on core products
Online Payment system
Release more of its own brand products and services
Legal Issues (Tax Avoidance)
International Issues (export and import restrictions, tariffs and other trad barriers)
Established in 1994 by Jeff Bezos
Amazon started as an online bookstore & quickly diversified into other product lines & services
You can find anything from; books, movies, games, music, electronics, apparel and accessories, auto parts, home furnishing, health and beauty aides, toys and groceries.