Amazon Functional-Level Strategy Case Study

Decent Essays
1. Discuss what functional-level strategies Amazon has used to boost its efficiency and customer responsiveness.

An article on Forbes said it best: “With Amazon, you get the sense that you are watching a chess game unfold, in which Amazon is thinking multiple moves ahead, along several fronts. They opponents seem to fumble, rant and rave like so many headless chickens, while Amazon continues to systematically dismantle them.” Source: https://www.forbes.com/sites/venkateshrao/2011/12/14/the-amazon-playbook/#33addce73bcb Amazon functional-level strategies involve superior supply chain management, cost effective customer service, highly sophisticated innovation and customizable b2b solutions.
Supply chain management: Amazon capitalizes on supplier
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Do you think that Amazon has any rare and valuable resources? Explain.
The valuable and rare resources that Amazon is “the entire company is organized around a gigantic chess game. Every asset is a piece on the board.” (Source: https://www.forbes.com/sites/venkateshrao/2011/12/14/the-amazon-playbook/#33addce73bcb
The article goes on to explain the disruption Amazon has made to the entire retail industry, books, online sales, b2b offerings. From the Forbes article and current listings, here are some of what Amazon has capitalized on: one click shopping, free shipping, subscription based ordering, Amazon’s affiliate program, direct relationship with authors, used and book rental programs, kindle and now Alexa opportunities, music and movie options. The key to Amazon is the strategic vision that it has. As suggested by the Forbes article, Amazon’s opponents “doesn’t just get one battle, it gets a multi-front war….”
Amazon’s valuable resources begins with management who isn’t afraid to take changes with offering the everything from A to Z or “the everything store,” fast deliveries (due to the efficient distribution network) with an “in it to win it” mindset. Source:
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However, if Amazon loses focus, develops a cloudy vision by playing in too many arenas, other organizations will take over as Amazon has a target on it’s back from unlimited competitors in a variety of industry. This is evident by Wal-Mart acquiring Jet.com and according to the Motley Fool, due to Wal-Mart’s infrastructure, Wal-Mart could integrate online and physical stores to change the landscape. This can be accomplished by combining digital with and offering a digital fulfillment in stores. Source:

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