Name: Zahir Nabi

CMS ID: 013-17-0132 BBA 8(B)

Business Strategy

Case Study 08 – Amazon

Q01: Amazon’s Vision
The vision of amazon to be epicenter for the people where they can find, discover, and buy
anything they want online.

Q02: Amazon’s Mission

And the mission statement of the Amazon is that they strive for their customers so that so they
can choose product from many product offerings in convenient way and lower prices.

Q03: Pastel Analysis

Definitions Reasons actions
Political This environmental  Increased  Amazon can’t
factor focus on govt rents and do anything
interventions in the labor taxes against the
policy, instability in  Increased labor laws and
market, overseas, hourly wages wages
foreign, and fiscal for labors imposed.
policy, labor laws,  Trumps They just
and trade barriers. remarks on have to follow
Amazon them.
 They need to
respond
trumps
Economic This environmental NULL NULL
factor contains the
ease of doing
business, exchange
rate, inflation,
disposable income of
people and business
entities.
Social These are social and  Amazon fails They have to identify
cultural factors that grab attention ongoing trends and
are related to people of their demographics.
and society derived customers
from ethnicities, when they use
religion, and their time on
demographics. mobile
phones.
 They have
diversified
into games
and streaming
platform.
Technology These factors contain There are way too They have to offer
innovation in product less apps on amazon more apps in their
and services, bringing store when compared app store.
technology to to apple and google
business, and store.
innovation in delivery
and communication
of product and
services.
Economic and legal They both focuses on They are liable and Amazon might lose
anti-trust laws, were accused for the their customers after
consumer safety, removing physical finding such acts
equality, rights, retailers due to their from amazon.
intellectual property extensive suppliers
laws, and much more and competitive
advantage.

Q04: Porter’s Five Forces Model

Reasons Intensity Actions
Rivalry Amazon has huge High Since the competition
rivalry since there are is high and there is
so many big market saturation
competitors in the only competitive
market such as advantage to the
Costco, Tesco, Amazon will yield
Walmart, and their him upthrust over
online retailing other competitors.
Customer’s  Customers Moderate They need to work on
Bargaining Power have low competitive
switching cost advantage and its
  They have sustenance and
more quality of their
information products.
about the
online world
 There are
many
substitutes
Supplier’s They have suppliers Low to Moderate Keep good
Bargaining power from every part of partnership with the
their world. There are suppliers and sustain
many suppliers for their advantage of
same product. excellent value chain
supply.
Threat to substitutes The larger the basket High They have to work on
size of amazon gives incentives and
it high substitute customer loyalty.
threat.
Threat of New There are no such Low They have to work on
entrants regulations and high product quality and
capital requirement in customer loyalty.
enter in the online
market.

Q05: SWOT Analysis

Reasons Actions
Strength  Huge Basket size and They need to diversify the
diverse product mix business units and come up
 Market leader in e- with new plans to sustain the
commerce profitability and competitive
 Huge line of Suppliers advantage.
from all over the
world
Threat  Business model of They need to come with
amazon is easy better strategic options to
imitable enter in the market of
 There is little to no developing countries and
brick and mortar ensure their growth in that
footprint of amazon market.
 They are still
struggling in
developing countries
markets
Opportunity  Brick and Mortar Expansion is must for the
 model amazon in long term process
 Related and Unrelated and they need to start
diversification planning about it from now.
 Anti-counterfeit
product
approach/model
Weakness  Threat of cybercrimes They have to come up with
and security of data best model to ensure safety
 Easily imitable from cybercrimes and
counterfeiting.

Q06: Competitive Advantage of Amazon and their resources

 Competitive Advantage: High number of products tagged in as competitive prices.
 Resources: High number of sellers, Online platform, and delivery service
 Reputational Resources: Brand name and Image

Q07: Business Strategic Positioning

Following are the business strategic Positioning followed by the Amazon

 Targeting the niches

 Relentless focus on strong customer service
 Uncompromised compliance on its cost leadership values

Q08: Four criterias of sustainable competitive advantage

Resources / Value Rare Imperfectly Nonsubstitutable Resultant
Capabilities imitable
Brand Yes Yes Yes Yes Competitive
Image Advantage
Customer Yes Yes No Yes Temporary
base advantage
Global Yes Yes No Yes Temporary
Presence advantage
Product Yes Yes Yes Yes Competitive
range Advantage
Technology Yes Yes Np Yes Temporary
advantage
Customer Yes Yes No Yes Temporary
loyalty advantage
Q09: Key Strategy of Amazon
The key strategies of Amazon is to keep their focus completely on technological, product basket
size, and efficient logistics.

Q10: Amazon’s Competitors

Following are the competitors of Amazon

 Walmart+
 Ali Baba
 Tesco
 Wish
 Target
 Costco

Q11: Competitive Rivalry, Behavior, and Dynamics of Amazon

Competitive rivalry: They are the competitive actions and responses taken by the firms in
accordance with their rivals to gain competitive position in the market. These big companies –
Amazon, Walmart+, Tesco or others – are competing for the advantageous position in the same
market. They operate in the same digital sector in order to gain market share.

Competitive Behavior: It consists of the set of the competitive actions and responses in order to
either build or defend its competitive advantage also to improve the market position. Amazon
has been looking through their competitors and even bough whole food chain in order to cater
threats grocery sides.

Competitive Dynamics: It talks about all the actions and responses taken by the firms competing
in that market. The online retailing has great dynamics and stringent competition among the
competition rivals.

Q12: Amazon’s Value Chain

A value chain is a model of activities involved in creating the product and delivering it to its
consumers. so, it is a chain of activities from the start to the end, it involves getting raw material,
processing, delivering, follow up, and other support activities like human resource management,
etc. The benefit of a value chain is that it increases efficiency of a company, helps the company
perform operations and productions effectively and efficiently, and helps it in delivering
Maximum value to the customers by keeping the costs as low as possible. Following is the value
chain of amazon:
 Inbound logistics: Amazon does not have to do anything but provide the warehouses to
suppliers where they will be keeping their merchandise and update it accordingly
 Operations: these operations are divided into three portions which overlooks America,
other global countries and certain institutes and governments.
 Outbound logistics: they have their delivery system which is accompanied with services
of logistics firms and these centers are available worldwide which efficiently deliver the
orders that are placed online.
 Marketing and sales: the marketing campaigns from the amazon are all about the
presence of certain products and their services related to it.
 Service: since the amazon aims to be epicenter for their consumers as per their said
vision, they aim to provide best services to their customers through their responses and
products.

Q13: Market Commonality and Resource similarity

When the firm operates in similar markets then the firms share the market commonalty and when
their rely on similar suppliers or raw materials/resources then these firms are said to be in
resource similarity. All the above mentioned competitors of Amazon have market commonality
and resource similarity such as: Walmart+, Costco, Wish, Tesco and many more.

Q14: Competitive Profile Matrix

Total Weight 1.00. Rating 01-04
Q15: External Factor Evaluation Matrix
Total Weight 1.00. Rating 01-04
Q16: Internal Factor Evaluation Matrix
Total Weight 1.00. Rating 01-04
Q17: Grand Strategy Quadrants Matrix
Differentiation Cost Leadership
Broad Amazon operates in cost
leadership with broader
market segments.
Niche
Q18: Internal-External Matrix
Q19: Quantitative Strategic Planning Matrix