Professional Documents
Culture Documents
Strategic Mgt. Project 183-Amazon
Strategic Mgt. Project 183-Amazon
PROJECT REPORT
ON
BUSINESS POLICY AND STRATEGIC
MANAGEMENT ANALYSIS OF
AMAZON
Submitted By:
Poornima Upadhyay
MBA II year, Div. A
Roll No. 183
INDEX
CHAPTER 1: INTRODUCTION
1.1 Company Overview
1.2 Products of the Company
1.3 Report Objectives
CHAPTER 2: STRATEGIC INTENT
2.1 Vision and Mission Statement Analysis
2.2 Strategic Business Units
Primary Strategic Business Units
Corporate Strategic Business Units
2.3 Balance Scorecard
CHAPTER 3: STRATEGIC FORMULATION
3.1 PESTEL Analysis
3.2 PORTER’S 5-Forces Analysis
3.3 SWOT Analysis
CHAPTER 4: STRATEGIC IMPLEMENTATION
4.1 3 Year Strategic Plan for the company
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
INTRODUCTION
Amazon.com was one of the first major companies to sell goods over the Internet
and has become a worldwide established name. Amazon.com is an American e-
commerce company that is based in Washington. It was founded by Jeff Bezos in
1994 and began as an online bookstore but due to its success, Amazon.com has
developed separate websites for Canada, UK, Germany, France, China and Japan.
Amazon.com's product lines available at its website include several media (books,
DVDs, music CDs, videotapes and software), apparel, baby products, consumer
electronics, beauty products, gourmet food, groceries, health and personal-care
items, industrial & scientific supplies, kitchen items, jewelry, watches, lawn and
garden items, musical instruments, sporting goods, tools, automotive items and toys
& games. In India, Amazon is now gearing up to play a role in the grocery retail
sector aimed at delivering customer needs.
Amazon.com Inc.’s vision and mission statements have pushed the company to
become the largest online retailer in the world. This success is attributed to stringent
measures to ensure that the mission and vision statements are fulfilled. The corporate
vision statement provides organizational direction toward a desired future condition
of the business. The corporate mission statement presents business goals and guides
strategic formulation in the company. Amazon’s vision statement shows a future of
global dominance in the online retail industry. On the other hand, Amazon’s mission
statement focuses on effective and high-quality service. The fulfillment of these
official statements facilitates further enhancement of the e-commerce business for
long-term success in the global market. Amazon.com’s mission statement is
responsible for the attractiveness of the company’s online retail offerings. The vision
statement also creates a strong motivational force to push Amazon’s e-commerce
business to be the best in the world. Amazon’s vision statement is “To be Earth’s
most customer-centric company, where customers can find and discover anything
they might want to buy online.” It underscores the organization’s main aim of
becoming the best e-commerce company in the world. The following components
or characteristics are emphasized in Amazon’s vision statement:
1. Global reach
2. Customer prioritization
3. Widest selection of products.
The “global reach” component in Amazon.com Inc.’s vision statement is all about
international leadership in the e-commerce market. Thus, a corresponding strategic
objective is global expansion, especially through market penetration and market. The
“customer prioritization” component shows that the firm considers customers as the
most important stakeholder group in the online retail business. Moreover, it indicates
continuing efforts to broaden the product mix, under Amazon.com Inc.’s marketing
mix approach.
Amazon’s mission statement is as follows: “We strive to offer our customers the
lowest possible prices, the best available selection, and the utmost convenience.” It
promises an attractive e-commerce service to satisfy customers’ needs. The
following components or features are identifiable in Amazon’s mission statement:
1. lowest prices 2. Best selection 3. Utmost convenience. The “lowest prices”
component of the mission statement guides Amazon.com Inc.’s pricing strategy.
Such low prices are a selling point that makes the company’s e-commerce website
and service attractive. A corresponding strategic objective is to reduce operational
costs. It also points to having the best selection. The availability of a wide variety of
products on the company’s website is a major factor that attracts customers.
Moreover, It emphasizes convenience. Convenience is a common criterion that
consumers use in evaluating the quality of the online retail service.
Amazon used the TOWS matrix to help it look at options, and to ultimately identify
high leverage strategies. Strengths, weaknesses, opportunities and threats are looked
at in a more systematic way than in a typical SWOT analysis. A TOWS analysis
helps one to focus on: leveraging strengths, avoiding weaknesses, make the most of
opportunities, and manage threats.
Strategic Position & Action Evaluation (SPACE) Matrix Analysis
The Strategic Position & ACtion Evaluation matrix (SPACE Matrix) is a strategic
management tool that focuses on strategy formulation especially as related to the
competitive position of an organization. It can be used as a basis for other analyses,
such as the SWOT analysis, BCG matrix model, industry analysis, or assessing
strategic alternatives (IE matrix). It is a systematic appraisal of four key issues that
balance the external and internal factors that should determine the general theme of
the strategy: ➢ External • Industry Attractiveness • Environmental Stability ➢
Internal • Competitive Advantage • Financial Strength
Quantitative Strategic Planning Matrix (QSPM)
The Quantitative Strategic Planning Matrix is a strategic tool which is used to
evaluate alternative set of strategies. The QSPM incorporate earlier stage details in
an organize way to calculate the score of multiple strategies in order to find the best
match strategy for the organization. The QSPM comes under the third stage of
strategy formulation which is called “The Decision Stage” and also the final stage
of this process.