Amazon Strategic Analysis

Amazon Strategic Analysis

Select a publicly traded company and prepare a 5-7 APA formatted page research paper analyzing its history, mission, vision, values, and competitive positioning. Include a literature review on strategic frameworks.

Cite five (5) peer-reviewed articles not including your textbook.

Chosen company: Amazon

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APA

Answer

Strategic Analysis of Amazon Inc.

I. Introduction

Amazon Inc. is one of the largest and most influential corporations globally, with a strong presence in e-commerce, cloud computing, and digital streaming. Established by Jeff Bezos in 1994, Amazon has grown from an online bookstore into a multifaceted technology giant that impacts various industries. The purpose of this paper is to examine Amazon’s history, mission, vision, and values, and analyze its competitive positioning. Additionally, this paper will review strategic frameworks that have supported Amazon’s development and success. Amazon Strategic Analysis

II. Company Overview

History

Amazon was founded in Seattle in 1994 and began as an online bookstore before expanding to a wider array of products and services. By 1997, Amazon went public and quickly diversified its offerings to include consumer electronics, apparel, and a marketplace for third-party sellers. Milestones in Amazon’s history include the launch of Amazon Prime in 2005, the founding of Amazon Web Services (AWS) in 2006, and the acquisition of Whole Foods in 2017, which marked Amazon’s foray into the physical retail space. AWS, in particular, has become a dominant force in cloud computing, contributing significantly to Amazon’s revenue.

Mission, Vision, and Values

Amazon’s mission is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.” This mission reflects Amazon’s dedication to enhancing customer experience and accessibility. Its vision centers around fostering an environment that prioritizes customer satisfaction above all. Amazon’s core values include customer obsession, long-term thinking, a focus on operational excellence, and a commitment to innovation. These values are reflected in Amazon’s continuous efforts to streamline delivery, expand product selection, and venture into new markets.

III. Competitive Positioning

Amazon’s positioning in the marketplace is formidable, given its dominance in sectors such as online retail, cloud services, and artificial intelligence. Amazon Strategic Analysis

Porter’s Five Forces Analysis

• Competitive Rivalry: Amazon faces significant competition from Walmart in retail and Microsoft Azure in cloud services. However, its wide product offerings and superior logistics give it a competitive edge.
• Threat of New Entrants: High entry barriers due to Amazon’s economies of scale, technological infrastructure, and brand reputation limit new competitors.
• Supplier Power: Amazon’s scale allows it to negotiate favorable terms with suppliers, but its reliance on third-party sellers means it must balance supplier satisfaction with customer demands.
• Buyer Power: While customers have options, Amazon’s Prime membership incentives and competitive pricing help maintain a loyal customer base.
• Threat of Substitutes: Physical retailers and alternative e-commerce platforms pose substitution risks. Amazon mitigates this with convenience features like one-day delivery and vast product variety.

SWOT Analysis

• Strengths: Strong brand, extensive logistics network, leading position in cloud computing through AWS.
• Weaknesses: Dependence on logistics partners, regulatory scrutiny, labor practices.
• Opportunities: Expansion in emerging markets, development of AI-driven services, and continued innovation in logistics.
• Threats: Increased competition, regulatory pressures, and potential shifts in consumer behavior.

IV. Literature Review on Strategic Frameworks

To understand Amazon’s strategy, a review of strategic frameworks is essential. Below are relevant frameworks and Amazon’s approach:

1. Resource-Based View (RBV)
   • Amazon leverages unique resources such as AWS, its proprietary fulfillment network, and data-driven customer insights. RBV suggests that these resources provide Amazon with a sustainable competitive advantage, as they are rare, valuable, and hard to imitate.
2. Value Chain Analysis
   • Amazon’s value chain maximizes customer satisfaction and operational efficiency. Its proprietary algorithms, supply chain innovations, and customer service provide added value at each stage. Research shows that such integrated value chains reinforce customer loyalty and enable Amazon to maintain low operational costs.
3. Blue Ocean Strategy
   • Amazon’s entry into cloud computing and digital streaming exemplifies a Blue Ocean Strategy by creating new market spaces. AWS has particularly established Amazon in an uncontested area of high growth and profitability, illustrating Amazon’s ability to innovate outside traditional e-commerce.
4. Core Competencies and Dynamic Capabilities
   • Amazon’s strengths in logistics and AI-driven personalization represent core competencies that adapt to market changes. Amazon’s dynamic capabilities, such as rapid adaptation to consumer demands and logistics innovations, align with literature on sustaining competitive advantage amid evolving market landscapes.

Peer-Reviewed Literature

• Incorporate five peer-reviewed articles that address these frameworks and examine Amazon’s competitive strategies. Articles could include studies on RBV in tech companies, analyses of value chains in e-commerce, and examples of Blue Ocean applications in cloud services.

V. Discussion and Analysis

Amazon’s mission, vision, and values align closely with its competitive strategies. The company’s focus on customer satisfaction and operational excellence has enabled it to capture and retain a vast customer base. By investing in AI and logistics, Amazon remains ahead of competitors, maintaining a reputation for fast delivery and customer-centric service. Strategic frameworks such as the Resource-Based View and Blue Ocean Strategy highlight Amazon’s focus on…