Ans. 1 ( Explain Amazon.com’s strategy during the period 2007 to early 2010.
Amazon’s strategy during the year 2007 to 2009 By using SWOT analysis
1. Focus on becoming customer centric and continuously improving customer experience by offering lower prices.
2. Continuous investment in innovation and technology.
3. Launching of the AWS (Amazon Web services) which allowed to connect to cloud of resources.
4. Expansion of Amazon in Digital content (DRM) which allowed FREE download and access for MP3 content and interfacing with smart technology like iPhone, iPod, blackberry etc.
5. Launching of NEED-specific websites by Amazon. For E.g.: Endless.com for handbags and purses. Launching of music stores, etc.
6. Able to maintain strong cash flow management by a 26 day turn around time from receiving customer payment to paying the seller.
1. Failure to pay share holder dividends up to 2006.
2. Amazon also quickly identified its own weaknesses by having in place the customer feedback forms.
1. The development of three pillar strategy viz. selection, price and convenience.
2. Launch of Amazon Kindle with no additional charges for wireless.
3. Amazon Kindle enhanced for iPhone which allowed access over 240,000 books.
4. A huge market for MP3 and full length movie content.
5. Announcement of AFP (Amazon Flexible Payment) services.
6. Continuous growth in the international market.
1. Low share holder confidence in post – 2006 since the non-payment of dividend for shareholders.
2. Amazon facing competition in the web industry from Apple and Google.\
3. E-commerce and mobile e-commerce competition from E-bay
KEY POINTS on Amazon’s Strategy from 2007~2009
1. Investing heavily in innovation and new technology.
References: 1. Johnson, G., Whittington, R. and Scholes. Exploring Strategy – 9th edition. England. Pearson Education Limited. 2. Amazon.com website. 3. Amazon.com case study.