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Strategic Management




In order to achieve higher in the Corporate World, the Companies adopt various combinations of business strategy. They select and implement the strategies according to the requirements of the business. Therefore, the combinations get changed with time. In the following report, the business strategies adopted by Amazon.com will be analyzed in detail. It will highlight the reasons for the continual progress of the company in the various business sectors it had attempted in these years. The report also enables the reader to comprehend the strategies that Amazon follows for the Multi-dimensional business and what can be the potential strategies the company can adapt to tackle the Future Challenges.



Under this section, the report will discuss the background of the Company in brief. It will also analyze the business plan of the company and the strategies applied to it, and whether they are appropriate or not. The central section of the report also aims to highlight the current challenges that the company is facing in its operation and the future challenges that may come in its way, sooner or later.

Company Background

It becomes very clear from the founding history of the company, that the founder Mr. Jeff Bezos laid greater emphasis on a significant Brand name, as he was well convinced about the role of a strong Brand value in a Business, especially when it is not established in a Normal Brick-and-mortar format. From the very beginning, Mr. Bezos had a clear strategy on his mind as he selected the name Amazon for his Online Store. He wanted to makeAmazon.com the biggest online store in the world, the reputation that it holds today. Amazon.com is a technical giant, Electronic Commerce and Cloud Computing Company which is based in the USA. The current Chairperson and CEO Jeff Bezos founded Amazon as an Online Bookstore in 1994-1995. As per its Market Capitalization and Revenue Generation Capacity, Amazon.com is currently the largest Internet Retailer globally.

Although it started as an online Bookstore, Amazon is currently dealing with almost every Consumer Goods, successfully delivering services in more than 190 countries. The company has also expanded its business in Cloud Computing, streaming entertainment content and innovating Customer oriented Devices.


Amazon can call itself a pioneer in Online Retail Business. Throughout its 23 years operational journey it has maintained a group of strong Business, Operational and Marketing Strategy to reach the place where it is today.

Long-Term strategies

Amazon has followed business strategies keeping in mind its long-term benefits instead of the short-term ones. The Amazon Web Services (AWS) is the perfect example of what it perceived as the essence of its Long-Term Strategy (Stuart, 2018). The services began simply as the group of web developers and potential Start-up, but now it has reached the level of millions of customers.

Amazon has always looked at the positive outcomes and the successes it has achieved as inspiration. The company never let the setbacks sit heavy on its mind. Moving forward for a new Company becomes easier when it follows positivity in the plan (Reynolds and Yetton, 2015, p.101).

Characteristics of Amazon’s Marketing Strategy

Market Segmentation

A company needs to segment the target market according to the customer types. According to (Ritala et al. 2016, p.2), it becomes very difficult for a company to target the whole of the market as the cost, risk, efforts, and profitability become an issue. Therefore Amazon has clearly segmented the market using Demographic and Psychographic characteristics of the people (Woo et al. 2015, p.176). At the micro level, the company treats the individual customers alike offering those services with a set of standard facilities. After that, they prepare the customer orientation based on their preferences. As per Standing and Mattsson (2016, p.11), in this decision making, the company should take into account the actual purchases made by the customer and not all the things the customer has shown interest in. As part of market segmentation which forms a part of marketing strategy, Amazon has identified the position and the target people who would purchase the products. Geographically, Amazon has extended its boundaries outside the USA to include other countries and have focused on all groups of people instead of focusing on single fixed target. In response to the middle and upper-class people, it has diversified its products to range from clothes to household goods and many more.

Following the 7 Ps of Marketing by Philip Kotler


The seven Ps of marketing includes Price, Promotion, Product, Place, People, Process and Physical Environment. As per Aversa et al. (2015, p.175), a company should give utmost priority to construct the Marketing Mix of the company using these 7 particles. Amazon has given strict priority to the element of Product. Amazon has paid due attention to promoting the brand and the Company also. 

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