Executive Summary
Executive Summary
Executive Summary
Case Statement
Amazon growth rates continue to rise, as their revenue, net income, and profit
continue to increase. The successful company is widely profitable, as they
Mission Statement
To be Earths most customer-‐centric company, where customers can find and
discover anything they might want to buy online, and endeavor to offer
Vision Statement
Offering our customers the lowest possible prices, the best available selection,
Milestones
• 1995: Amazon sold its first product – a book titled “Fluid Concepts and
Thought” by Douglas Hofstadter. The book was sold from Jeff Bezos’
• 2018: Amazon raised minimum wage to $15 an hour for all US employees.
This pay increase will positively effect the hundred of thousands Amazon
workers.
External Assessment
Amazon is doing a good job at taking advantage of our opportunities and
avoiding the threats that approach. Increasing number in Internet users
worldwide, more items being easily sold online, and global expansion are the
most important factors that have an impact on Amazon. Amazon faces many
threats that can potentially harm the organization. Ease of entry into the
market, customers preferring to try on items before purchasing them, and
facing an aggressive competition with large retail firms are the most
Internal Assessment
Amazon is very strong internally. Some of Amazons greatest strengths
are having the highest revenue in the industry, being the largest online
retailer, and having a strong brand name. Amazon’s strong brand name is the
reason for their rapid growth and continued success within the industry,
which
has
resulted
in
them
leading
the
e-‐commerce
brand
globally.
Amazons
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SUMMARY
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greatest weaknesses are that their business model is easily imitable and they
Industry Analysis
used approach for developing strategies in many industries. Just because
Amazon is the largest e-‐commerce company, does not mean that the company
does not have high competition. The intensity of rivalry among competing
firms is very high, as there is an increase in the number of competitors for
online retail. Amazon must take concrete steps to discourage new entrants.
Amazon should be continuously identifying new firms entering into the
market and monitoring new rival firms strategies. Amazon is able to
discourage new entrants by offering programs such as Amazon Prime. Since
there are so many suppliers, this allows Amazon to select its own suppliers.
Financial Analysis
Jeff Bezos, Amazon’s president, CEO and chairman, has created many
sophisticated analysis programs in order to keep Amazon at an advantage. For
the
fiscal
year
ended
31
December
2018,
Amazon’s
revenues
increased
31%
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SUMMARY
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to $232.89 billion. Amazon needs to focus on using their assets efficiently in
order to increase their ratio. They could also take better advantage of the
increased profits that their financial leverage brings. Amazon has a steady
growth rate, as they continue to make large amounts of capital investments
each year. With revenue and sales continuing to increase, Amazon is projected
Competitive Strategies
critical success factors. The alternative strategies that were used in the QSPM
were to create and sell more of their own products, up website services by
Recommended Strategy
Amazon is significantly leading in voice, with the Amazon Alexa and the
Echo Dots. If they were to introduce a cell phone that could pair with the other
Smartphones are so common in today’s world, as everyone seems to have one.
By
creating
their
own
products,
the
goods
would
be
sold
under
their
name,
EXECUTIVE
SUMMARY
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rather than an outside vendor. Therefore, Amazon needs to take advantage of
Implementation Strategy
and divisional areas of a business. The implantation plan will begin with CEO
of worldwide consume, Jeff Wilke, and CEO of Amazon Web Services, Andy
Jassy. All managers of Amazon will be involved with establishing annual
objectives, as this will represent the basis for allocating resources, monitor
organizational, divisional, and departmental priorities. In order for Amazon to
implement the strategy successfully, their goods and services must be
marketed well. R&D personnel play an integral part in strategy
products and improving old products in order to allow effective
assessing the staffing needs and developing a staffing plan for effectively
implementing strategies. The finance team has the responsibility for figuring
out how Amazon will fund this new strategy. The finance team will need to
create
a
budget
of
the
financial
requirements
for
the
strategy.
Amazon
will
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SUMMARY
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need approximately $150 million to fund the project of innovating their own
smartphones.
Amazon has an ethical responsibility for their customers and the
environment. They are responsible for providing their customers with low