Amazon.

com
Strategic Plan 2023 - 2025

11-Feb-2023
Contents
1. Vision statement

2. Mission statement

3. Situation analysis

4. Strategic goals

5. Suggested strategies

6. SMART Objectives
1. Vision Statement

To be earth's most customer-centric company; to build a place

where people can come to find and discover anything they might
want to buy online.

2. Mission Statement
To continually raise the bar of the customer experience by
experience by using the internet and technology to help customers
find. Discover and buy anything and empower businesses and
content creators to maximize their success. We strive to offer our
customers the lowest possible prices, the best available selection,
and the utmost convenience.
 3. Situation Analysis
3.1 SWOT Analysis
Strengths Weaknesses
• Strong Brand Name • Innovation • Poor employer working • Lack of product quality
• Creditability (FBI) • Cost leadership conditions. control
• Large customer base • Efficient delivery network • Data Security Concerns • Tax avoidance
• Wide variety of products • Market leader • Lack of control over 3rd party • Losing margins
• High customer • High technology product • Unfair use of third-party data
satisfaction • Direction of more • Illegal use of client database • criticisms
• Accessibility sustainable product • Fiscal stores shortage

Opportunities Threats
• Expanding physical stores • Backward integration • Seasonality • Environmental Challenge
• Regulation changes • International economic
• Lunching of metaverse • Entering new industries • Aggressive competition recession
• Artificial intelligence • Invest in charity. • Increasing of cyber crimes • International supply chain
• Fake reviews issue
• Developing countries • Fake products • Russia – Ukraine War
• Negative public opinion • Low switching cost
• Foreign currency exchange
 3.2. PESTLE Analysis

P S L
Political
(Threat)
E
Sociological
(Opportunity) T Legal
(Threat)
E
The new generation Different international
The international worldwide & the life laws and regulations
Political atmosphere style trend Technological Environmental
Economic
(Opportunity) (Opportunity)
(Threat)
The US Tectological Challenges and
The era of easy money Sustainability future
Infrastructure and its
and low inflation is over.
effect on the business
side
 3.3 Porter 5 Forces

01 Competition in the industry Moderate - High Force - Threats

02 Hight Pressure – Opportunity

The threat of new Entrants

03 Bargaining Power of Customers Moderate-High Pressure - Threats

04 Threat of Substitutes Moderate-High Pressure - Threats

01 Bargaining Power of Suppliers Low Pressure – Opprtuninty

 3.4 BCG Matrix

Stars - (AWS) Question Marks: Prime Video

• Sales growth of 20% in 2022 • Video – Growing but still no.2 in the market
Market Growth Rate

• Market leader with 32% market share in 2022

BCG Matrix

Cash Cows - Amazon retail products Dogs – Amazon go

Market share of 37.8% Amazon go never managed to create an

Slight growth ongoing revenue stream

Relative Market Share

Stars - (AWS)

• Sales growth of 20% in

2022
• Market leader with 32%
market share in 2022.
 3.4 BCG Matrix

Stars - (AWS) Question Marks: Prime Video

• Sales growth of 20% in 2022 • Video – Growing but still no.2 in the market
Market Growth Rate

• Market leader with 32% market share in 2022

BCG Matrix

Cash Cows - Amazon retail products Dogs - Amazon go

Market share of 37.8% Amazon go never managed to create an

Slight growth ongoing revenue stream

Relative Market Share

Question Marks
- Prime Video
• Prime Video is growing but still has a lot to do to be able
to be neck to neck with Netflix that is leading the market
because of its biggest range of content, the Worldwide
accessibility, and the Mix of originals and syndicated TV
series and films that it has compared to Prime video.
• (New data about streaming service performance in Q1
2022 shows that HBO Max saw the most growth during
the quarter compared to its competitors, +2% market
share since January. This new growth makes HBO Max the
third largest streaming platform in the U.S., beating out
Disney+ and Hulu according to data from JustWatch).
• Accordingly, both products can become ‘star’ if they
receive more investments or to acquisition of another
competitor like HBO.
 3.4 BCG Matrix

Stars - (AWS) Question Marks: Prime Video

• Sales growth of 20% in 2022 • Video – Growing but still no.2 in the market
Market Growth Rate

• Market leader with 32% market share in 2022

BCG Matrix

Cash Cows - Amazon retail products Dogs - Amazon go

US Market share of 49.1% Amazon go never managed to create an
Worldwide market share 21% ongoing revenue stream
Slight growth

Relative Market Share

 Cash Cows -
Amazon retail
products
- US Market share of
49.1%
- Worldwide market
share 21%
- Slight growth
 3.4 BCG Matrix

Stars - (AWS) Question Marks: Prime Video

• Music – Only market share of 15%
• Sales growth of 20% in 2022
• Video – Growing but still no.2 in the market
Market Growth Rate

• Market leader with 32% market share in 2022

BCG Matrix

Cash Cows - Amazon retail products Dogs – Amazon Go.

Market share of 37.8% Amazon go never managed to create an

Slight growth ongoing revenue stream

Relative Market Share

•Dogs – Amazon go.
•“Amazon go” never managed to create
an ongoing revenue stream
3.5.SPACE Matrix
Financial Strength (FS) Competitive advantage (CA)
Working Capital 2 Market share -2
Cash flow 3 Product quality -2 FS
Ease to Exit from 3 PLC -4
market
Sales 3 Customer loyalty -1
Control over suppliers -5
3
Control over -5
distributers
Technological Know -2 CA -3 1
how
AVG Score 3 AVG Score -3
-1
Environmental Stability (ES) Industrial strength (IS)
Technological -5 Growth potential 5 -4
changes
Rate of inflation -6 Profit potential 5
Barriers to market -2 Ease of market 3
entry entry ES

AVG Score -4 AVG Score 4

Competitive Profile Matrix (CPM)
Amazon Alibaba
Weighted
Critical Success Factor Weight Score Score Weighted Score
Score
International Market Penetration 0.08 4 0.32 2 0.16
Brand Recognition 0.1 4 0.4 3 0.3
Delivery Network 0.07 4 0.28 3 0.21
Product Quality 0.1 3 0.3 3 0.3
Advanced Technology 0.15 4 0.6 3 0.45
Market Share 0.05 4 0.2 3 0.15
Financial Position 0.07 3 0.21 3 0.21
Price Competitiveness 0.09 3 0.27 4 0.36
Management 0.09 3 0.27 4 0.36
Marketing 0.05 3 0.15 3 0.15
Product Range 0.15 4 0.6 4 0.6
TOTAL Score 1 3.6 3.25
3.7. EFE

Threats Weight Score Weighted Score

Increasing Competition 0.12 4 0.48

Regulatory Challenges 0.1 4 0.40
Cybersecurity Breach 0.06 4 0.24
Competition from Local Companies 0.09 3 0.27
Seasonal Products 0.09 2 0.18
Uncertainties in the Economy 0.05 2 0.10
TOTAL Score 1 3.36
3.8. IFE
Strengths Weight Score Weighted Score
Vast Product Offerings 0.12 4 0.48
Technology Solutions 0.12 4 0.48
Efficient Distribution System 0.11 4 0.44
Dominance in Online Retailing 0.05 3 0.15
Cost Leadership 0.05 3 0.15
Customer Loyalty 0.03 3 0.09
Variety in Items Prices 0.02 3 0.06
Brand name and Valuation 0.1 4 0.40
Weaknesses Weight Score Weighted Score
High Operational Costs 0.12 4 0.48
Limited physical Presence 0.13 4 0.52
Product Failures 0.05 4 0.20
Working Conditions 0.05 3 0.15
Presence in Asia 0.03 2 0.06
Operating on Slim Margin 0.02 2 0.04
TOTAL Score 1 3.70
 4. Strategic Goals
1. Deliver More Quality products to our customers
faster than ever before
2. Leverage whole foods acquisition to become a
leader in grocery delivery.
3. To increase the number of customers who
subscribe in Amazon Prime.
4. Improve AWS profits by increasing price on new
contracts.
5. Increase the number of third-party sellers on
amazon.
 4. Strategic Goals

6. Expand Physical Stores through the acquisition of

physical stores and partnerships with Physical Store
retailers.

7. Increase marketing and advertising efforts to reach new

customers and increase brand awareness.

8. Develop partnerships with companies in international

markets to expand amazon's presence.
5. Strategies
1. Intensive Strategies

In market penetration, a company attempts to Increase Market Share by

selling existing products in its existing markets.
Market
Penetration The various products it sells online are regularly marketed in its existing
markets. By creating new advertisements, promotions, offering discounts,
and encouraging bulk purchases are often employed by Amazon.

The company also has introduced Amazon Prime for its premium
customers to further benefit from their loyalty. Members are motivated to
make repurchases through discount promos
5. Strategies
1. Intensive Strategies

Entry and growth in new markets is the main objective in this

intensive strategy.

Amazon.com Inc. adds new countries where it offers its services.

Market
For example, the company initially provided its online retail services
Development to consumers in the United States.

Amazon now operates e-commerce websites in more than 20

countries, including Canada, the United Kingdom, China and India.
 5. Strategies
1. Intensive Strategies

This involves developing new products to sell to existing markets

Product Amazon.com Inc. applies product development as a supporting

Development intensive strategy for business growth.

Developing and offering new products to gain higher revenues is the

goal of this intensive growth strategy. Amazon grows partly by
developing new products over time. For example, Expand Cars
deliveries in existing market.
5. Strategies
2. Integration Strategies

Amazon forward integration can also be seen in a variety of other

Forward
businesses that the organization operates. For Example, Expand
Integration
physical stores in New or Existing Areas

Horizontal Leverage whole foods acquisition to become a

integration leader in grocery delivery.
5. Strategies
3. Generic Strategies

Cost The goal of cost leadership strategy is to produce

Leadership products and services with a lower cost than the
competitors do.

Amazon to succeed with the cost leadership strategy it

has to provide the widest range of products to achieve
the economies of scale and benefit from the low costs of
displaying those products on its online marketplace.
5. Strategies
3. Generic Strategies

“ The most important single thing is to focus obsessively on

the customer. Our goal is to be earth's most customer-centric
Differentiation company. " - Jeff Bezos

Amazon's main strategy is to differentiate itself by developing

differentiated products and services that meet the needs of its
customers.

Amazon provides an online platform, with quick delivery and nearly

every product on the market.
 6. SMART Objectives

1. Increase Net sales between $121.0 billion and $126.0 billion, or to grow between 4% and 8%
compared with first quarter 2022.
2. Increase Operating income to $4.0 billion, compared with $3.7 billion in first quarter 2022.
3. Apply long-term agreements with top 3 critical suppliers.
4. Open 2 physical stores in UK & France
5. Increase inventory capacity by 10% for items required preparation with lead time more than a week.
6. Add new Prime membership benefit from Amazon Pharmacy that offers patients affordable access
to commonly prescribed generic medications that treat more than 80 common health conditions.
Thank You