Executive Summary of Amazon

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Competitive Strategy
LB5206
Amazon.com
“Live” Case Study

Table of Content

Table of Content2

Executive Summary2

Corporate Culture3

Industry Analysis through Porter’s Five Forces5

Competitors for amazon.com8

SWOT Analysis of Amazon9

Difficulties faced by Amazon.com12

Competitive Strategies12

Recommendations14

General References15

Executive Summary

Amazon.com is a customer centric company. They put more effort in improving their system to make the experience of customer more comfortable so that he keeps on returning to the website. Jeffery Bezos who is the founder of the Amazon.com started this company after seeing the use of internet increasing rapidly. The company was started in year 1994. Bezos started operating the business from a small office in Seattle and the website was launched on internet in 1995. The main focus of Bezos was to change the experience of buying a book from the internet with more enjoyable service. This concept proved to be so successful that it became the most successful online business. Amazon.com till date has gone through many ups and downs. It has been registered as the largest customer base with yearly sales of billions of dollars. Now Amazon.com offers very wide variety of products. Anyone can buy any products of almost any brand. Their company went through a tough time in between when they were trying to compete with competitors like Wal-Mart and eBay. But they were able to come out of it but improving their services according to customer experiences. They improved on their strengths and worked on weaknesses so as to make the customers experience more enjoyable and interesting.

Corporate Culture

"We're not always asking ourselves what's going to happen in the next quarter, and focusing on optics, and doing those other things that make it very difficult for some publicly traded companies to have the right strategy." (Jeff Bezos) "Culture eats strategy for breakfast." (Sramana Mitra's book, Entrepreneur Journeys) (Ina Steiner. (2009))

The corporate Culture of amazon.com is to some extent different from other companies. When Benzos started the company he didn’t try to follow any other company’s culture. Normally companies like to hire People who are experienced and are not fresh outs from a university or college. But Benzos followed a different approach. He usually used to employ people who don’t have experience and are fresh outs from college and universities. And Benzos is following this culture till today. In the starting period of the company, Benzos didn’t like to follow the common business practices. And because of this, there were bad decisions which were made. But in spite of all that amazon.com has grown and has made a brand name for itself. The main reason for that was the vision of Benzos and hard work from other people. And other thing is company’s timing was perfect, as it started at the start of the dot-com bubble. Amazon is “selling other people’s products, or more specifically, figuring out the best ways to sell other people’s products,” says Brent Frei of Bellevue (Gregory T. Huang. (2010)) According to a former Microsoftie, “Kindle is a means to sell other people’s books. Mechanical Turk is a way to improve data around selling other people’s stuff. They rarely have a product line that is competing with another product line that prevents innovation.” (Gregory T. Huang. (2010)) Benzos in on of his interviews describes the focus of amazon.com on the management of the processes and different strategies. Benzos thoughts about the future are as under – normally people think about things which will change over time but he says that we should concentrate on those things which never change. Example, customers want a variety in goods, not high prices, etc. And after 10 years it will still be true. According to Benzos a company should not competitors focused but customer focused. The main reason for this is that internet is changing...
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