Answered Essay: What is the strategic plan of the company AMAZON and how does the plan affect culture and core

What is the strategic plan of the company AMAZON and how does the plan affect culture and core values of the company?

Expert Answer

Amazon, founded in 1994 by Jeff Bezos started as an online book store. Diversified itself into other retails merchandising and selling of other consumer durables. One can find, from movies, books to toys, groceries, furniture. Amazon primary purpose is to become a cost leader and gain the market share. Amazon lets other retailers to sell their product on its interface and in return asking for a cut at every order. Thus it has incresed its ovrall reach without affecting operating costs.

Another strategy is sale of used products through its seller marketspace. Customer focus higly on pricing of the item and Amazon has very well been able to reduce the gap of customer expectation to customer perception. Amazon has reached a loyal base of approximately 250 million which is a gigantic number and to cater to such a large audience one needs to have an efficient delivery mechanism in place. The logistics are beyond excellance and thus provide ech delivery safely and on time which has resulted in high customer retention as well. Amazon survived the dot com buble where most of the firms collapsed. Major competitors are Apple, Barnes & Noble, Walmart and Ebay.

Amazon expects every employee of his to work ethically , morally correct, socially and in the best interest of the customer and the company. The Code of Busoness conduct lets Employees adhere to the values of Amazon.

Strengths

  • Largest e commerce retailer
  • economies of scope
  • effective technology use

Weaknesses

  • Only online products
  • selling at zero margin
  • negative publicity
  • loss of focus on core products

Opportunities

  • Online payment system
  • international expansion

Threats

  • Online security
  • Legal Issues
  • International issues like trade barriers
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