Strategic Management- Amazon

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Amazon – 2011
Forest David

A.Case Abstract
Amazon.com, Inc. is a Fortune 500 company based in Seattle, Washington. Amazon bursts onto the Internet retailer scene in July 1995 and today offers the biggest selection of products among all companies worldwide. Amazon.com, Inc. seeks to be a company where customers can find and discover anything they might want to buy online. The company strives to offer customers the lowest possible prices on millions of unique new, refurbished and used items in categories such as Books; Movies, Music & Games; Digital Downloads; Electronics & Computers; Home & Garden; Toys, Kids & Baby; Grocery; Apparel, Shoes & Jewelry; Health & Beauty; Sports & Outdoors; and Tools, Auto & Industrial.

Amazon recently introduced new, under $100 non-color and under $200 color Kindle e-readers, with aggressive plans for both video and self-publishing. Amazon now competes with a variety of technology companies such as Apple with its e-reader and with Netflix for streaming video, which is an area where the Kindle Touch and Kindle Fire will play. Amazon also competes with eBay and discount retailers like Best Buy and Wal-Mart for its electronic products, books and apparel.

Amazon’s latest generation Kindle is the lightest, most compact Kindle ever and features the same 6-inch, most advanced electronic ink display that reads like real paper even in bright sunlight. Kindle Touch 3G is a top of the line e-reader and offers the same new design and features of Kindle Touch, with the unparalleled added convenience of free 3G. Kindle Fire is the Kindle for movies, TV shows, music, books, magazines, apps, games and web browsing with all the content, free storage in the Amazon Cloud, Whispersync, Amazon Silk (Amazon’s new revolutionary cloud-accelerated web browser), vibrant color touch screen, and powerful dual-core processor.

B.Vision Statement (proposed)
To become the number 1 online retail store in the world.

C.Mission Statement (proposed)
At Amazon we strive to offer our customers (1) a wide range of products including everything from books, media, watches, sleeping bags to home furnishings and much more (2) all at the best price available (7) from the most trustworthy merchants (5, 6). Our team of executives is the best in the industry and we offer them attractive salary and benefit packages (9). We strive to serve the United States and world markets (4) by using the latest technology to ensure smooth safe transactions (4). At Amazon we also believe in being a good corporate citizen and giving back to the communities in which we operate (8). 1. Customers

2. Products or services
3. Markets
4. Technology
5. Concern for survival, growth, and profitability
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees

D.External Audit
Opportunities
1. Online shopping provides convenience, greater choices and often tax free shopping. 2. Weak stock market and IPO environment will limit startup companies for forming. 3. Stock price is near all time highs with PE ratio of 114. 4. Weak dollar should boost international sales.

5. More people know English now than ever before.
6. Digital distribution of media is growing at a rate of 30% a year. 7. Internet companies fared better than traditional companies during the economic downturn.

Threats

1. Chinese company 360buy.com expects to report 2010 revenues in excess of $1.5 billion. 2. Barnes & Noble, Borders Group, and Books a Million are large brick and mortar and web based competitors. 3. PayPal is owned by competitor EBay

4. Potential for attacks on Amazon’s website and servers. 5. PE ratio of 114, stock is likely vastly overvalued at present. 6. Poor global economy has reduced personal spending.
7. Barriers to entry are low as startups can be launched for relatively low costs. 8. Mergers continue across many different Internet...
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