In recent times Amazon is the most well-known retail company. The amazon, online retail company try to manage their strength throughout a long time. The amazon.com is unaffected from the external shock, wInhich is termed as dot com (.com) and recession in current days.This report analyse a strategic management plan for the amazon company. Every company need a strategic management plan to achieve the organization’s objective and amazon needs to apply this plan. Strategic management plan is described as the set of plan decision and action of the company which shows as a result in invention and the process of implementation to complete the desire goal of the company. This report mainly focused on the study on Amazon.com. The first section of the report gives a brief description about the background of the company. In the next section, there is a description about the strategies which are used by the amazon.com and their critical analysis. Third section of the report describes the business expansion strategies which are used by the amazon.com. There is a part which explains the competitive advantage of the company. In the fifth part of the report, there is some description about the challenges which are coming in the future on Amazon Company. In the next part, there is a description about the process to overcome from the challenges by using the potential strategies.
As stated by (Hill, Jones and Schilling, 2014), Amazon.com started their e-commerce services from the time of 1990 and continuously expands their business in the new market area. The latest moves from the Amazon Company side is Prime Wardrobe program which means the amazon prime customers can try the garments at their home and exchange them in a period of seven days after purchasing. Amazon also started their physical store at the location across the United States to reach the consumers physically. According to (),Amazon also stared a partnership with the Nike which helps them to expand the business. In the past time amazon also purchased the Nike products from the third party retailers. But after the partnership with the Amazon and Nike, will help customers to save the money and create a good brand image to the consumers. Amazon also started a full- featured application for mobile gadgets such as smartphones, personal computers tablets as well as smart watches. These things are designed for the video chat, play games and text which are another part of Amazon services. As mentioned by (Peppard and Ward, 2016), a survey shows that customers are talked about the important features which is massaging. There are some filters for video and photo which offered to kept the chat private. Amazon.com stated a meal kits which being sold to the particular customers through the united stated website. These particular services offered through the paid subscription process. Amazon also offers amazon’s grocery services and Amazon fresh which available to the prime customers. Amazon Company started a partnership with Sears which hep the company to sell the Kenmore appliances. Amazon also sells the smart appliances and home appliance. Many companies like whirlpool lowers best buy dropped the market valuation 12 billion dollar in one day. Amazon Company started with online bookstore and nowadays they sell every product for daily this is the main policy for expanding the amazon business.
Nowadays Amazon Company rules the online retail business world throughout the United States. As stated by (Madsen and Walker, 2015), it is found that amazons are serve the lowest price offer to the customers. Amazon.com also developed the delivery network and the supply chain process with the warehouses. Amazon achieved a massive scale partnership with the vendors which help the best possible price to customers, where Wal-Mart gets the same thing in selected areas. Wal-Mart physical store’s product prices are huge than the warehouse price. Where amazon can fix a little bit profit margins and make huge money by selling the maximum product. As mention by (Frynas and Mellahi, 2015) Amazon does not have physical store in all the area, they just doing the delivery business with the exciting price of the product due to the partnership with the company. Amazon Company also blessed with the advanced software technology. Amazon Company has a partnership with the United States postal services that helps them shipping every edge of the world. As opined by (Rothaermel, 2015), every site need registration for purchasing through the credit or debit card. They need to fill their card details in the website. Amazon is the well-known company and kept the costumers data safely. As well as amazon show the seller description under the product link. So there are no trust issue from the customer side. Amazon Company invested a big amount of money in the online model because there is an attack by the biggest rival of the company. It is next to impossible in some area to giving the lower price compare to the amazon company. Amazon.com delivers some product with taking the shipping charges. Shipping charges of the amazon company are very nominal, however other compotator of amazon are high with compare to the price of the product plus their delivery charge. As mention by (Luthans and Doh, 2018), amazon also have some good investors all over the world. It is a big advantage for the amazon.com amazon company opened up for the recommendation of new brand stock.
From the above report it can be concluded that a proper strategic analysis of Amazon is carried out which will help the company in future. The company should take into consideration about the important factors which can give them competitive advantage in the market and it is essentially necessary for them to consider these factors. Furthermore, in order to expand in the market, Amazon should make proper analysis of the foreign market before investing. They should also focus on hiring skilled employees along with implementing advanced technologies that will not only help them to grow but also will help them to achieve their desired goals in the near future. Their mission and vision statement should be clear and they must consider the challenges that can harm the company’s future in the market. Along with this, one of the most important things that need to be considered is that they must focus on the external factors.
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