Analysis of Amazon.com

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Introduction

• Jeff Bezos is both the founder and President of Amazon.com having established the company in 1994.

• The company has its headquarters in Seattle.

• Amazon.com started off as an online bookstore, online book shop, etc.

  However, with time the company has incorporated jewelry, electronics, etc.

  • Much of the success of Amazon.com can be underlined by the efficient organizational culture and setup making the company the top online retailing company in the world.

State of the Mission

• Since the beginning of Amazon.com, the company has boosted of a clear focus and a solitary mission.

• For that reason, the mission statement of the company is described as the guiding force the leadership decision making.

• In consequence, it can be acknowledged that the success of Amazon.com is partly due to the unwavering commitment to its mission.

Company Strategy

• The co-operate strategy utilized can be termed as concentric diversification, which is empowered by the business technological capabilities so that to guarantee success.

• Additionally, the company utilizes cost leadership strategy aimed at offering optimal value to its customers at relatively lower prices so as to solidify Amazon.com customer base.

• In reality, these strategies have proved to be fruitful with the company becoming a leader in various market segments.

Continued

• Further, Amazon.com utilizes the generic business strategy is well illustrated using The Ansoff matrix that primarily focuses on the reduction of operational costs.

• As a result, Amazon.com has taken definite measures to fulfill this strategy by offering discounts for its regular customers through platforms like Amazon Prime.

• Finally, the various strategies employed by Amazon.com are empowered by its sources of competitive advantage for instance economies of scale.

Amazon.com Structure

• The global e-commerce activities at Amazon.com are empowered by the well structured organizational structure that lays the foundation for interactions among members of the company.

• For instance, the co-corporate structure determines how the top hierarchy directs and influences operational activities at Amazon.com.

• In principle, it is significant that Amazon.com maintains an organizational structure that sufficiently meets the needs of the constantly growing customer base.

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• It is apparent that Amazon.com boasts of a functional organizational structure.

• As such, the company prioritizes business functions as determinants of

  interactions among elements of the organization.

• The Amazon.com corporate structure possesses the following characteristics; global hierarchy, geographic divisions and international functional groups.

• Geographic divisions involve geographic regions while on the other hand global hierarchy is expressed in regards to the command chain.

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• The most significant characteristics at Amazon.com is highlighted by the function-based groups. With the company delegating major functions to this groups.

• The focus of these groups to empower Amazon.com to smooth the progress of successful e-commerce operation so as to maximize profits.

• Some of the function-based groups at Amazon.com include; Accounting, Legal, Finance, Business Development, etc.

• These groups are fundamental towards the expansion plan of the company.

Continued

• Amazon.com boasts of separate retail websites for the USA, the UK, India, France, etc.

• Additionally, the company offers international shipping services to specific countries for some of its online products.

• Amazon.com in 2015 became the most valuable retailer in the USA surpassing...