Amazon Strategic Research Project
April 12, 2011
To obtain sustainable competitive advantage in a fast changing business environment, organizations formulate and readjust strategies to respond to the change. To more effectively adapt to this changing environment, focus is placed on strategic planning against its competitors. This paper provides strategic research for Amazon.com, Inc. (Amazon), beginning with the vision and mission statements and an assesment on the external environment. Also included in this research are the intensive strategy used by Amazon in market penetration, market and product development. Additionally, a SWOT Analysis is provided along with the recommended five-year corporate strategy.
Vision and Mission Statements
Amazon.com vision and mission statements are one. "Our vision is 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," (Amazon, 2011, para 3). The company has continued to follow their stated mission.
According to the company overview on Hoovers.com, what started as Earth's biggest bookstore has rapidly become Earth's biggest anything store. Expansion has propelled Amazon.com in innumerable directions. Its website offers millions of books, music, and movies (which account for most of its sales), not to mention auto parts, toys, electronics, home furnishings, apparel, health and beauty aids, prescription drugs, and groceries. Shoppers can download e-books, games, MP3s, and films to their computers or handheld devices, including Amazon's own portable reader, the Kindle. Amazon also offers products and services, such as self-publishing, online advertising, e-commerce platform, and a co-branded credit card, (Amazon Company Overview, 2011).
The external environment assessment monitors key macroenvironment and microenvironment forces. Macroenvironment forces include "demographic-economic, natural, technological, political-legal, and social-cultural" factors. Microenvironment forces include factors such as "customers, competitors, suppliers, distributors, and dealers," (Kotler & Keller, 2006, p. 52).