For the final assignment of this course, you will continue your work with the company AMAZON. For
the Unit VIII Project, you will complete the final components of your implementation plan.
For Part 3, you will focus on the following points:internal and external issues,competition ,future outlook for the organization, and implementation of tools for measuring business success
AMAZON Business Strategy and Policy
The Amazon was founded in 1994 by Jeffery Bezos with a sole aim of exploiting the internet to reach more and more customers given the fact that the internet was increasing at a rapid phase. However, the company was at first focused on online bookstore, but as it grew it invested in other goods such as electrical appliances. Currently, the company is placed in top 100 lists of fortune companies, despite the ever growing competition in the online retailing business in the world today. However, the company has never fallen short of ideas, concepts, and strategies aimed at monitoring and developing plans that can put Amazon in the leading place in the global Internet retailing industry. This assignment will attempt to cover in details how Amazon can address issues such as internal and external challenges, competition and the future outlook of the company.
Internal and external issues
Just like any other company on the planet, Amazon faces some internal challenges due to the ideological differences between the employers and the employees. One of the internal issues facing the company is the organizational culture that seeks to satisfy customer’s needs and wants more than minding the welfare of the employees. The company has an organizational culture that enables business capacity to respond to the demands of the e-commerce market. Despite the corporate culture of the company pioneering efforts in this type of online retail business, it imposes a strain on human resources. For the company to work efficiently and effectively, it has to find the balance between satisfying customers need and fulfilling objectives and goals of their employees (Ritala, 2014). Moreover, they should understand that monetary compensation is not the only reward employees are after despite being the major. On the other hand, legal issues are the main challenges facing the company given the fact that the company has to operate in different countries to fully satisfy their customers. Some countries around the world have strict rules and regulations for businesses making it even more difficult for online companies who are used to operate in the United States. Moreover, Amazon has to keep an eye on their products considering that customers and authorities in different regions are very keen because of product counterfeits.
To remain at the top of the charts and competitors, the company has invested in different brands that include media, electronics, and other merchandise. In the media segment, Amazon faces stiff competition from companies such as eBay, Netflix and Apple who are determined to win a large market share in the e-commerce industry. Additionally, the company has several competitors in the electronics and general merchandise segment that includes Best Buy, Family Dollar and Wal-Mart. However, given the fact that the company relies on their strong brands, extensive product mix, there is a high chance that it will succeed in putting off their customers and reaping maximum benefits from their business (Chou, 2016). It is worth noting that Amazon has the strongest brand in the online retail market, which is responsible for the rapid growth of the company and the extensive product mix makes it easy for customers to find what they need and want. To be in a better competitive position, the company has to ensure they maintain the quality of their products and services to enhance customer loyalty as well as winning target market.
Future outlook of the organization
The company has a bright future to shape their organization and operations in the bid to be the best and a customer favorite in this industry. To achieve this, Amazon needs to roll out its online payment system that can help in addressing issues such as security and privacy concerns. With the rapid use of internet in the globe today, there is a risk of identity theft and cyber attacks if the company is not keen. By setting up an online payment system, there is a great chance that all transactions between the company and their customers will be discreet. Moreover, the company needs to show more concern for their employee’s welfare as a way of promoting their corporate culture and getting the best out of them. In addition, the company can capitalize on their strong brand to roll more products and services to reach to more and more customers.
Implementation of tools for measuring business success
As an investor, there is the need for the company to know their performance in the market by implementing measures of business success. The true measure of success is more that revenue and profits made by the company as it incorporates how much the management of the company learns about their clients, the business, and the company. To truly implement these measures, the management of the company needs to train and educate their employees on the importance of understanding their customers, the vision and mission statement of the company as well as its core values and their market (Kousha, 2016). Moreover, the company can also set up interaction platforms between employees and employers such as social platforms like Instagram and Facebook pages.
Chou, M. (2016). An Analysis of Buyers and Reviewers Community in Amazon. com Through Wenger’s Domain-Practice-Community Framework.
Kousha, K. &. (2016). Can Amazon. com reviews help to assess the wider impacts of books?. . Journal of the Association for Information Science and Technology, 67(3), , 566-581.
Ritala, P. G. (2014). Coopetition-based business models: The case of Amazon. com. Industrial Marketing Management, 43(2), , 236-249.