Assignment 2: Crafting A Strategy To Fit The Business
Assignment 2 Discussioncrafting A Strategy To Fit The Businessthe We
Assignment 2: Discussion—Crafting a Strategy to Fit the Business The Web site Amazon.com once aimed to be the world’s largest bookseller. Now the company offers a wide range of products and services to consumers, operating online retail storefronts for partners and developing and selling its own manufactured products (such as Kindle). Can a company like Amazon.com have a strong business model but a weak strategy? Using the Internet, find Amazon’s most recent annual report and peruse its main sections. Based on your analysis of the report, respond to the following: How has the company’s strategy changed from the original generic strategy that was applied? How would you describe the central elements of Amazon’s strategy? In your opinion, what elements are involved in implementing the following business strategies? A low-cost provider strategy, differentiation, diversification, market timing. Write your initial response in approximately 300 words. Apply APA standards to citation of sources.
Paper For Above instruction
Amazon.com’s evolution from a humble online bookstore to a global e-commerce and technology powerhouse exemplifies strategic adaptation and innovation. The company's original generic strategy centered on broad differentiation—focusing on offering a vast selection of books, competitive pricing, and excellent customer service. Over time, however, Amazon shifted its strategic focus toward a hybrid model that combines elements of cost leadership with differentiation, leveraging its extensive logistics network, technological innovations, and brand reputation for customer-centricity (Johnson et al., 2020).
The company's recent annual reports reveal that Amazon’s strategy has significantly evolved, emphasizing diversification into cloud computing, digital services, and private-label products. Notably, Amazon Web Services (AWS) has become a dominant player in cloud infrastructure, providing a substantial revenue stream that supports its expansive ecosystem. This diversification aligns with a broad market approach, targeting different sectors such as enterprise clients, healthcare, and entertainment (Amazon, 2023). The core of Amazon’s current strategy involves leveraging scale and technological innovation to reduce costs, enhance customer experiences, and create a seamless omnichannel retail experience. Its customer obsession, data-driven decision-making, and continuous innovation exemplify its strategic priorities (Kantar Consulting, 2021).
Implementing a low-cost provider strategy is evident in Amazon’s relentless focus on optimizing its logistics and supply chain operations, which enables it to offer competitive prices and fast delivery. Differentiation is achieved through services like Prime membership, personalized recommendations, and an extensive product assortment that caters to diverse consumer needs. Amazon’s diversification strategy is clearly seen in its expansion into cloud computing, media streaming, and AI-powered devices such as Kindle and Echo, which help it penetrate new markets. Market timing is a key element, as Amazon often enters emerging markets early to establish dominance before competitors can catch up, such as its early investments in India’s e-commerce landscape (Zhao & Liu, 2022).
In conclusion, Amazon’s strategic evolution reflects an intricate blend of cost leadership, differentiation, diversification, and market timing, all driven by innovative use of technology and customer focus attributes. Its ability to adapt and expand into new markets demonstrates a flexible and responsive strategic approach that sustains its competitive advantage in the dynamic e-commerce environment.
References
- Amazon. (2023). Amazon Annual Report 2023. https://www.amazon.com/annualreport
- Johnson, G., Scholes, K., & Whittington, R. (2020). Exploring Corporate Strategy. Pearson.
- Kantar Consulting. (2021). Amazon’s Strategic Priorities. Kantar Reports.
- Zhao, Y., & Liu, X. (2022). Market entry strategies in emerging economies: A case study of Amazon in India. Journal of Business Strategies, 38(2), 45-60.