Amazon Case Study Analysis Essay example

2732 Words Jul 2nd, 2014 11 Pages
Amazon case study analysis

---- Jiachuang Sun

1. Review of Amazon’s strategy between 2007 and 2009

Strategic analysis

Profiling the business:

➢ Mission: 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, and endeavors to offer its customers the lowest possible price[1].

➢ Product/service analysis: Since the establishment of Amazon, new products has been kept adding into the original book category and Amazon has moved further to provide service. There are three product categories in Amazon, media category, electronic and general merchandise category and other category like
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Besides, Amazon has the technological capacity, which underpins its distribution system, logistic system,ordering process, and further improves its effectiveness and efficiency so that they can offer their customers with lower price.

➢ Weakness: Amazon has kept adding new categories to its online retailing which might make Amazon lacks of focus and risk its brand image. Moreover, Amazon has a high turnover rate compared with other online retailers.

➢ Organizational structure (Appendix A). Amazon is a company consolidated by four pillars: chief executive offer, chief financial officer, director and chief technology officer. Looking at this structure, the significance of technology in Amazon is self-proved.

Strategic development

According to the above analysis, it could tell that Amazon uses different strategies to achieve its mission. In order to better serve its customers, during the period of 2007 and 2009, Amazon adopted a customer centric strategy and . In order to maintain its rapid sales growth momentum, Amazon has continued to use cost leadership strategy and diversification strategy in order to sell more.

Advantages and disadvantages of the three strategies

➢ Customer centric strategy

• Pros:

This strategy can motivate Amazon’s employees to establish a customer-centric culture, that is to put their customer in the first place,

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