Meta-Analysis of the Company "Amazon"

Introduction

To start with, this is Amazon executive summary paper where deep analysis of this company is discussed. Meta-analysis shows that there is a significant positive overall correlation between formal planning and success. Armstrong describes strategic planning 'a specific method for deciding the company's broad objectives, processes for creating and assessing alternatives, and a framework for tracking project outcomes as incorporated.' One of the main arguments of this type is that strategic planning provides a viable connection between the priorities, objectives and capital of the organization. The risk-based approach to navigation in the country is another reason for integrating strategic planning in the organizational operation. Chaos is an evolutionary theory of strategic planning that sees that a process continually transforms to an even higher degree of complexity, causing irreversible and therefore evolutionary changes. Chaos Theory views all dynamic systems as self-organizing in the way that they organize themselves and structure themselves, and in how they evolve and alter. Chaos Theory claims that a system creates its own order and natural growth by incorporating changes in its identity, thus ensuring continuous growth on a higher level.

The report was structured to present the findings within the internal environment of an analysis of Amazon's strategic marketing strategies, strengths and weakness. The report presents marketing plans and strategies for consideration. Analytical tools such as the 7p Marketing Mix, SAFe Criteria, SWOT Analysis, ANSOFF Matrix, VRIO and Porter's Generic Competitive Strategies were used to evaluate the giant of e-commerce.

Amazon's products and services have been vigorously but sympathetically promoted using available technology to reach many markets. Their strategy has worked somewhat. Amazon has purchased more than 15 businesses and runs 13 local websites.

Although Amazon has significant market share and reach, the organization needs to consider the following: Price control and differentiation are the guidelines for consideration.

Analyzing and Evaluating Amazon’s Current Strategy

The e-commerce business approach uses its technical capabilities to thrive using a cost management strategy aimed at providing its customers unrivaled value at lowest prices. This has led to an increase in market share and to stay ahead of its rivals amid the economies of scale.

Amazon focuses on costs is crucial to the comprehension of its overall strategy. Costs are the key to its overall cost control. Amazon also focussed on the 'differentiation' customer experience in the marketing mix of management.

Rai notes that the success or failure of competing companies in a market depends in large measure on the development and implementation of the strategy. It is thus necessary for Amazon to identify external opportunities and challenges and to use the information to maximize its internal performance, which would ultimately lessen its weakness. Under a company is expected to develop strategies that make it profitable for its organizations.

The Corporate Strategy of Amazon can be defined as focused diversification, according to a Management Study Guide. One of the key strategy of Amazon is to provide an enjoyable and exclusive customer experience, with products based on a user's past, through tailoring each user experience. Amazon provides customer service all around the world, hassle free refunds, and updates of consumer items left behind in or displayed in their vehicle. Amazon has been able to penetrate the e-commerce market with this data and cost management strategy.

Identifying and Assessing the Competitive Power of Amazon’s Strategic Capabilities

Analysis of Amazon’s Value Chain

Michael Porter first introduced the concept of the value chain in 1985 through his major work on competitive advantage. Value Chain analysis is a diagnostic tool for the continuous improvement process at chain level as a whole, according to Soosay et al. The study of the value chain focuses on three important questions:

1. The information dynamics in the value chain from final consumption to primary manufacturing and suppliers and back
2. The information flows in the chain and 3 are descriptive, transparent and sensitive.
3. To what degree Amazon has built the value chain through the handling of the processes and organization of the sequences through interaction between stakeholders at each point so that the product / service is delivered successfully.

Amazon has two major drivers, the goods they sell online, and their marketing algorithms, according to Lincoln. They also support their value chain with skilled staff, automation and a vast network of courier companies. Amazon can use the prestige of its brand through distributors to purchase the goods at lower costs and add value.

Amazon’s VRIO Analysis

The technique of Value-Rarity-imitability organization (VRIO), which assesses the degree to which its resources meet the criteria for a continuous competitive advantage, has become widely used. Value Rare Imitation Organization (VRIO). Analysis Amazon's value chain VRIO analysis revealed the expertise and strengths of the value chain of Amazon, contributing to a competitive advantage of the company. Amazon's competitive advantage was established in the VRIO Report, which described factors like custody loyalty, pricing strategies, brand awareness, a strong asset base and market alignment backed by the clear mission and goals of the organization.

Summary of Amazon’s VRIO Analysis

• Brand image and share: The focused rand image of Amazon's customers is an important competitive benefit for the brand. It has succeeded in creating high confidence based on product and service performance.
• Large customer base: Amazon has a very large global customer base, a significant strength for the e-commerce business.
• International footprint: The brand's global presence also provides significant benefits.
• Customer loyalty: Amazon also has a high level of customer loyalty, which keeps a huge proportion of consumers alive.
• Technological innovation: Technological innovation also provides the brand with a competitive advantage because it offers Amazon a unique and excellent client experience. The company has raised its research and development spending further.
• Huge product portfolio: Amazon sells a very wide range of products with hundreds of millions of products.

A distinction which is apparent from their track record of implementation, excellent customer service, brand awareness and client satisfaction can be attributed to the Company's competitive edge. Amazon has thus had the competitive advantage over many other companies.

SWOT Analysis

Strengths

Amazon is the world's largest e-commerce company. In terms of primary membership, the company has reached the 100 million mark worldwide. In addition to the number of customers, Amazon continues to expand its product line and range.

Amazon is a leading cloud player as well. Amazon Web Services is a leading cloud provider.

Amazon kept a very wide range of loyal customers in company. Prime pushes consumers to incorporate and keep. Prime Video is a significant source of new Amazon membership. Additional reasons underlying the high level of customer loyalty include customer experience, customer service quality and products, and technology investment.

Amazon is a worldwide company of worldwide sellers and buyers. In the United States and 130 countries in Amazon, sellers from all states sell their products to global public.

Amazon's website sells a wide variety of products. Hundreds of millions of unique products are sold on the website. Amazon has become the most favorite place for the shoppers in several categories, including fashion and music. Based on the growing number of third parties selling from all over the world, the product range continued to grow.

The company's financial success is another major strength. Sales have risen quite steadily in recent years. Even if the operating margins are low, the product generates very high revenue.

In order to offer its consumers the best experience, Amazon has maintained strong focus on innovation. In modern times, innovation is a crucial strategic source of advantage for an e-commerce company. But it is also important to provide clients with a unique experience, apart from managing a great website. Nevertheless, Amazon is not only investing in e-commerce, but also in cloud computing.

Weaknesses

Traditionally, Amazon's operating margins are low. In addition to a small increase during the last two quarters, since mid-2016 they have remained below 3%. Operating margins rose to 3.5 percent in the last quarter of 2017 and then to 3.8 percent in the first quarter of 2018. Contrast it with 45 percent of Facebook and this is a big difference.

In the past, many Amazon goods were not as popular as they had been planned.

Opportunities

Diversification offers Amazon unique growth opportunities. It is involved in the cloud industry, in addition to e-commerce. The brand could diversify into new technological fields which allow it to develop more quickly.

Future integration can also be a way of increasing production. In addition, the brand can open physics stores as the brand opened its own logistics and distribution network to grow quicker and closer to its customers.

Acquiring new enterprises also provides faster growth opportunities. Amazon has recently acquired Whole Foods and another company named Ring operating in the home security field. Likewise, Amazon will move into new areas of business, which will allow it to develop more rapidly.

The release of new products such as Alexa can help the brand to grow more quickly. Nonetheless, the company wants to keep an eye on what items it is trying to produce due to the intense rivalry from Google. Deficiencies in the service also contribute to losses.

Threats

Cloud and e-retail rivalry is a significant challenge and has escalated continuously. Rivalry Alibaba raises the level of rivalry as well as eBay and Flipkart. However, competition is also growing for Amazon from the physical retail brands. Increased threats from Walmart's entrance to e-retail. Microsoft, Oracle, Salesforce, and other major cloud service companies are competing actively in the cloud industry.

The pressure from law and regulation also creates major problems for major brands of technology, including Amazon. The EU in particular has continued to change the environment quickly and top technology companies, including large fines, face the major challenges.

A stronger dollar has also continued to impact the earnings of major international and technological companies such as Amazon. Foreign exchange rate changes can also theoretically adversely affect major companies ' earnings like Amazon.

Amazon still relies heavily on the American markets for most of its revenue. North America's e-commerce net sales were almost double the brand's worldwide net sales. To order to reduce their reliance on American markets, Amazon must focus on increasing its international business.

Strategic Options

Based on the findings of the SWOT analysis, two viable strategic options–product development and product diversification Product Development are found in this quadrant of the Ansoff matrix. Similar to the first time Amazon was founded and only physical books sold, it has continued offering a large mixture of items. In creating its own line of consumer electronics, Amazon has entered new markets:-Amazon Firestick, Amazon Kindle, Echo dot and Alexas Virtual Assistant to name only a few.

Diversification: The e-commerce company has diversified and expanded its catalog of products sold online. Diversification: It also diversified its business with the purchase of brick and mortar companies like Whole Foods, Zappos and several other retail giants. The Amazon's diversification portfolio includes the production of their own branded electronics and the opening of bricks and mortar locations within the product development quadrant.

Evaluation of Strategy

Johnson et al. argue that before a strategy can succeed, three criteria must be met. Using the SAF approach template all possible solutions can be collectively evaluated. The SAFe Criteria was used to evaluate the following strategic options:

Differentiation

Suitability: Amazon's main aim is to offer exceptional customer service as the strategic option meets the objectives and needs of the company. Amazon has a wide range of specially trained staff to provide world-class customer service and technology to facilitate incoming demand.

Acceptability: As a result of the retention of existing customers, this strategy will continue to have market share. The strategy of differentiation will enable Amazon to maintain financial stability and its fair customer base, with the market for e-commerce becoming more competitive and saturated.

Feasibility: Amazon is able to successfully develop its differentiation strategies through staff, money, experiences and technology. Customers will continue to purchase personalized experience as the shopping experience develops in a user-friendly website, friendly customer service staff. A company can sometimes receive positive feedback via word of word.

Cost Leadership

Suitability: The strategic option meets the company's goals and needs. It also makes productive use of the company's knowledge and supply network. At an extremely competitive price, Amazon is able to sell products.

Acceptability: For broaden this approach, high risk will be seen as Amazon already has a small profit margin.

Feasibility: Sustainable cost control is a viable option because of economies of reach, negotiating power over suppliers and financial stability.

Strategic Marketing Framework

Marketing Objectives

Marketing is one of its principal departments and is responsible for identifying customer needs and wishes. These needs can be identified by a company, which can meet their target audience's requirements. Limiri and Gichuru suggest that market segmentation offers a way of increasing productivity and market share. Amazon knows the market and its target group and is designed to adapt to those requirements by structuring its marketing strategy.

In the core Marketing Strategy and using Cost Leadership Initiatives, Amazon is leading its competitors. Although Amazon retains its larger market share, the company continues in various spaces to monitor its competitors.

Marketing Mix

The 7 p's are a collection of well-known marketing tactics used to deal with and fulfill consumers’ desires in combination. The report describes how Amazon approached and used 4 of the 7 ps, i.e., when there are 7 ps. Place and Promotions Item, Price.

Product

As part of its marketing mix, Amazon has a wide range of products in each category. Consumers can easily use their websites or mobile apps to access those items and never leave their home comfort. Third party vendors registered with Amazon also complement the product line. The product bought is shipped to the customer by various partner providers, all backed up by Amazon's A-Z guarantee and 30 day returns.

Place

In most places where Amazon has an online presence, it established customer service center. This was part of the vision statement and task to ensure that each client's needs are met appropriately. The strategically located completion centers near major transit areas were another important step to ensure rapid receipt and delivery of products.

Price

A pricing strategy exists within Amazon's marketing mix. To order to harness their economic scale, the e-commerce retailer uses technology and productive services. Prices are changed on a regular basis according to product category, season and times of the day. Amazon offers its customers a number of subscription services, providing added value. To sum up, cost management played an integral role here.

Promotion

The main marketing tool for Amazon is web-based advertisement. It also uses advertising networks to display its website or information via other sites that the user can browse. The use of a company name which would be prominent on search engine results is another notable tactic. Amazon is also marketing its brand through e-commerce events that sometimes resemble conventional bricks and mortar shops. You are known for sales on Cyber Monday, Black Friday and Thanksgiving.

Conclusion

The results of the 7p Marketing blend, of the SAFe Criteria, of SWOT analysis and the AnSOFF Matrix VRIO, were used to consider the internal strengths, vulnerabilities and strategic plans of Amazon. The fact that Amazon does not market any unique products was the result of these results. This is why Amazon has a remarkable and memorable user experience and is heavily engaged in high-tech data collection. Amazon is heavily committed to creating a unique customer-friendly experience.

With this approach, Amazon has established a network of faithful customers who continue to shop on its 13 sites knowing that their needs are met, that problems are addressed and that products are received when they are promised, without leaving their own home comfortably. With an understanding of the outside environment, they have used their strong brand reputation as part of their diversification strategy to build new businesses such as pharmaceuticals, groceries, streaming and branded electronics.

The Cost Management and Diversification approach has worked for the company, creating a small profit margin and a tolerance to shifts in currency. As the dollars of emerging economies increase, Amazon's net income can adversely affect them. Differentiation's approach allowed Amazon to maintain its customer base, which is essential to their economic survival.