Assignment 2 Discussion: Crafting A Strategy To Fit The Busi
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. By the due date assigned, post your response to the appropriate Discussion Area. Through the end of the module, review and comment on at least two peers’ responses. Explain what you find to be the most helpful advice and why you would consider it a possible best practice. Amazon. (2012). Grading Criteria: Maximum Points: Quality of initial posting, including fulfillment of assignment instructions 16; Quality of responses to classmates 12; Frequency of responses to classmates 4; Reference to supporting readings and other materials 4; Language and grammar 4; Total: 40.
Paper For Above instruction
The evolution of Amazon.com’s business strategy exemplifies how a company's strategic focus can shift significantly over time while maintaining a robust business model. Originally founded as a purely online bookstore, Amazon’s initial generic strategy primarily revolved around cost leadership and broad differentiation. Its goal was to offer customers a vast selection of books with competitive pricing and convenient online access. However, as the business expanded into a global marketplace for a wide range of consumer products and services—including electronics, cloud computing, and original devices such as Kindle—its strategic orientation transitioned towards diversified growth with an emphasis on customer experience and technological innovation.
The core elements of Amazon’s current strategy are centered around customer obsession, operational excellence, and innovation. Amazon’s customer-centric approach involves personalized recommendations, fast shipping, competitive pricing, and a seamless shopping experience across devices. Operational excellence is achieved through sophisticated logistics, warehousing, and distribution capabilities, enabling rapid order fulfillment and cost efficiency. Innovation pervades its product development, such as enhancing its cloud computing services via Amazon Web Services (AWS) and continually refining its e-commerce platform. Together, these elements underline Amazon’s strategic shift from a narrow focus on books to a multifaceted enterprise.
In terms of specific business strategies, Amazon effectively employs a low-cost provider approach by leveraging economies of scale, automated supply chains, and data-driven inventory management to keep prices competitive. Differentiation is solidified through the development of unique Amazon services, such as Prime membership with exclusive benefits and its proprietary devices like Kindle and Echo, which foster customer loyalty and brand identity. Diversification is evident in its expansion into cloud computing (AWS), media content, and logistics. Market timing is also crucial; Amazon strategically introduces new products and services to preempt competitors and capitalize on emerging market opportunities—examples include early investment in cloud technology and streaming media.
Overall, Amazon’s strategic agility, driven by technological advancements and market insights, has allowed it to maintain a competitive advantage across various industries. The company’s ability to adapt and innovate has established a comprehensive and versatile strategy that aligns with its evolving business environment, exemplifying best practices in strategic management.
References
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