목차
목 차
1.Introduction—History and
Development
Growth of the Amazon
Book selling industry
environment
Global Expansion
2.Company’s Environment
(1)The
identification of the internal environment
Internal strengths
Internal weaknesses
(2)The nature of the external environment
External environment – Opportunities
External environment
– Threats
(3)A SWOT analysis.
3.Amazon’s Business
Model
(1)The Corporate-level Strategy
Company’s mission statement
Strategic role of Jeff Bezos
Vertical Integration
Strategic
Outsourcing
(2)The Business-level Strategy
Use of Resources
IT as its
Distinctive Competency
Low Cost Strategy
High Market
Segmentation
(3)The Functional-level Strategy
Decentralized Decision
Making Process
Customer-centric Strategy
(4)The Company’s Structure and
Control Systems
Company’s Structure
Control
System
4.Conclusion—Recommendation
본문
3.Amazon’s
Business Model
We defined Amazon’s business model by analyzing each level of
strategy Amazon pursue, and how the company’s structure match its strategy.
(1)The Corporate-level Strategy
Company’s mission statement
According to the case study handout, Amazon’s corporate-level managers
believe its mission is to become “Earth’s most customer-centric company, where
customers can find and discover virtually anything they might want to buy
online.” They see Amazon as a technology company, and their goal is to use and
develop its technological skills to make more sales of goods and services which
could satisfy its customers and allows profit growth. Therefore, the vision of
Amazon is to build “an online retailer that is customer-friendly, and offer the
broadest possible selection of various products at low price.”
Strategic
role of Jeff Bezos
Founder of Amazon, Jeff Bezos played a significant role
implementing strategy, representing his company and publicizing Amazon. He flies
around the world, encourages employees, and finds innovative and cost-saving
solutions. For example, one of Bezos belief is small organizational structure
and no communication is needed. Amazon has a Two-Pizza Team Rule which means “if
a project team can eat more than two pizzas, it’s too large.” Bezos believes
small organization creates innovation and the team can experiment their vision
independently.
Vertical Integration
Amazon has built its portfolio by
acquire many established businesses over time which can refer to a vertical
integration. Amazon explore to new kinds of online retail venture such as
purchasing Livebid.com to enter online auctions. Amazon bigger their businesses
to the global scale as well. For global expansion, Amazon first enter into
English speaking countries by acquire overseas Internet companies that already
had strong presence in local domestic market. Acquisition is a way of wholly
owned subsidiary and specifically an M&A. By diversify its online venture
and market, Amazon realizes cost economies from global sales volume and learning
effects from established company to strengthen its business
model.
Strategic Outsourcing
Amazon outsources some of its value chain
activity to outside companies. Amazon is an online retailer and does not
manufacturing the entire product it sells on its websites, outsourcing delivery
service as well. Also, increasing number of B&M companies start its own
online retail service after Amazon start the business, but they realize the high
operating cost. When Internet bubble burst, B&M companies became Amazon
associates or formed agreements with Amazon to operate their online store which
led Amazon become an IT service company and another source of revenue growth.
Amazon offer a consulting service to other virtual retailers which helped Amazon
enters into new market segments and improve its IT system by learning. Amazon
not only broad their retail ventures but strengthen the customer-friendly
features which would enhance its revenue.
 
(2)The
Business-level Strategy
Use of Resources
Resource of Amazon is an
intangible asset such as employee, knowledge, and brand name. Amazon gains
employees from established businesses in the middle of acquisition process, and
transfer to Amazon employees, relocating as working forces of Amazon. These new
workforces enable to Amazon to achieve learning effects in many ways and gain
synergy. Also, acquisition with small companies led Amazon to make better use of
its resources and capabilities. As a result, Amazon improves its distinctive
competencies in IT and increase sales.
IT as its Distinctive Competency
The mission statement clear Amazon’s IT act as a source of its competitive
advantage, Amazon using it technology and the Internet develops utility of its
service. According to the textbook, arrival of new technology often gives a
company the opportunity to develop new business strategies. Amazon used the
internet and the associated strategies made e-commerce markets possible, to
pursue a cost-leadership model and consolidate the bookselling industries.
Amazon’s success in the book market as accelerated the consolidation of the book
retail industry, and many small bookstores had closed because they cannot
compete by price
본문내용
e 1990s, the popularity of the Internet and
World Wide Web swept across the world. Personal computers in most businesses and
households hooked up to Internet providers and Web browser software in some form
or another. Therefore, selling products over the Internet offered a variety of
choices and opportunities. One of the pioneers of e-commerce was Jeff Bezos,
founder of Amazon.com (Amazon).
Growth |
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