ipl-logo

Amazon's Core Value Strategy

1781 Words8 Pages

The core value propositions for Amazon’s internet book buyers were price, customer service, selection and convenience. Bezos (2000) claimed. Amazon to be “Earth’s most customer centric”, which meant they needed to listen, be innovative and personalise. Amazon’s personalization efforts were summarised by the CEO of Amazon, Jeff Bezos, by stating “If we have seventeen million customers, we should have seventeen million stores.” (Bezos, 2000).
Expansion of core businesses
Amazon consists of a divisional organisational structure consisting of different departments with different products along with services, thus, allowing appropriate focus on their resources and results. This allows them to monitor the organisation’s performance, making the organisation’s …show more content…

Customers pay for value, and offering prices, lower than competitors, for the same benefits or creating unique benefits for higher price, creates superior value. A company implementing a strategy for creating value, different from competitor’s strategies, has a competitive advantage.(Barney,1991), thus, giving Amazon, a strong chance against its competitors.

Petaraf and Barney (2003), stated that when a company creates greater economic value, it has an advantage over its competitors. Economic value is the difference of the perceived benefits received by the customers from the company’s economic cost. Although there are various ways of gaining competitive advantage without being the best in all aspects, there should be superiority in value creation (Peteraf and Barney, 2003).

Amazon successfully identified the right resources and developed its capabilities in key target …show more content…

• Weaknesses and Threats (WT) – How can weaknesses be minimised and threats managed?

Part IV: Concentric Diversification strategy
This strategy uses their technology expertise, to create value being the ‘lowest cost, customer-centric, online market. This policy proved good as it helped organised their customers (B2B & B2C) as well as activities, securing their cash flows to crisis. But the huge investments for it can be risky, due to low profit margins and sales reduction can cause effects on cash flow or new technology investments.
Conclusion
Amazon.com has been strong and steady since its foundation. Jeff Bezos openly claimed the mission statement to be the guiding force behind his decisions. It can be believed that the success of Amazon.com has been due to mostly, if not totally, their unwavering commitment to its mission and its implementation.
Amazon’s major guide has been its strategy for low cost and effective innovations gaining advantage over its competitors. Amazon’s established strategies can be deemed suitable and successful and thus making it dominating player in the market. This dominance may very well continue as Amazon explores new innovative products and

Show More
Related

How Nordstrom Microeconomic Factors Affect A Business

971 Words | 4 Pages

If the limits and resources required for the development are obliged in any way, it could incite higher costs, delays, budgetary adversities and failure to meet their global objectives (Davis, 2017). In order to achieve and sustain competitive advantage, Nordstrom must manage their risks and threats effectively and coordinate appropriate productivity company wide. Nordstrom must focus security, customer experience, flexibility to guarantee competitive advantage and success. In order to succeed in international markets, Nordstrom has to keep both their global e-commerce price and divider costs relatively close.

Read More

The Failure Of Barnes And Noble's First Store

176 Words | 1 Pages

Barnes and Noble’s first store opened in 1917. Their website was launched in 1997, which many speculated was to compete with the rising Amazon website. Later that year, B & N sued Amazon for using the slogan “Earth’s Biggest Bookstore” due to their lack of titles in comparison to their own (which was close to 200,000 titles). While the suit failed, critics of B & N believed this showed an, “old, tired, unhip giant – exactly the wrong image to project to the burgeoning Web audience” Many also complained their website was slow, buggy and difficult to use.

Read More

Tax Refund Benefits Of Amazon

400 Words | 2 Pages

(AMZN) has said that in 2017 more than 5 billion articles were sent through its service, and in 2017, more new pay-per-click users globally and permanently than both countries. Amazon.com, Inc. (AMZN) also said that its share of fire and Eco-Dot television 2017 were the best-selling products in the entire site, and the buyer bought "millions of refineries" during the

Read More

Barnes And Noble Essay

224 Words | 1 Pages

I. Strengths – Barnes & Noble has the following strengths: a. Reputation recognized by consumers b. Multiple business channels c. Discount price strategy d. Physical store, which provides customers an in-store experience that is not available in the online marketplace II. Weaknesses – Barnes & Noble has the following weaknesses: a. Limited experience in the e-book industry b. Lack of technological support to transfer from a traditional, physical book retailer to an e-book retailer c. Large amount of physical assets that may become sunk costs in the e-reader/e-book market III. Opportunities – Barnes & Noble was faced with an opportunity to enter the e-book market due to the growth and profitability this new market could bring to the company.

Read More

Costco's Competitive Strategies

729 Words | 3 Pages

What are the two types of core competencies that drive a firm’s competitive advantage? Which firms demonstrate a clear competitive advantage because of (a) major value-creating skills/core capabilities and/or (b) superior assets or resources? Which firms have demonstrated sustainable sources of competitive advantage? The two core competencies that drive a firm’s competitive advantage are cost leadership and differentiation.

Read More

Comparing The Sense Of Conformity And Positive Language: Amazon. Com

224 Words | 1 Pages

Looking at languages that the media uses, Amazon.com presents the messages in the sense of conformity and positive languages. For example, the advertising shows that their product is a highest purchasing comparing with other brands in the same category. Thus, when I perceive, I think that there are many people choose this product, so I should use it too. Moreover, the messages that they use are positive. For instance, they present about ears technology protector, premium sound quality with modern style.

Read More

Value Proposition Of Fitbit

1808 Words | 8 Pages

This is the comparison of the benefits offered by a company's product to its customers relative to the price it asks customers to pay. To do this, companies can influence the value proposition in one of two ways mainly. This can be done through long term brand building. They can also offer a relatively low cost to enhance value. Ultimately, the key is that customers perceive that the product's merits exceedingly justify its price.

Read More

Case Study Of Apple Inc.'s Diversification Strategy

1442 Words | 6 Pages

Apple Inc. embraces diversification strategy as a means of promoting its viability in the market. Largely, the creation of the three products lines compounds the sources of the company’s income. In fact, the company does not rely on a single source of income because the product design belongs to different categories. This strategy cushions the business from suffering risks of associated with depending on a single business. According Hitt, Ireland, and Hoskisson (2014, p.135), the benefit of handling many products is that when one product fail or does poorly in the market, the business is would shift its attention of the best performing products.

Read More

Case Study Of Amazon's Competitive Strategy

897 Words | 4 Pages

Amazon’s competitive strategy is cost leadership. Amazon has achieved a lot on a great scale that it gets the best prices from its vendors so they can operate in very flexible and thin margins and sell their items easily at retail prices and make money. They also provide shipping products for a reasonable cheap price. They also have improved their warehouses by giving some space to other sellers who want to sell their items through Amazon. They differentiate and provide better quality than their competitors across the industry.

Read More

H & M Value Chain Analysis Model

3035 Words | 13 Pages

The value chain equates to the internal activities that a company employs in transforming its inputs to outputs; this helps with the improvement of activities, helping the company to achieve competitive advantage. In the analysis of H&M’s organizational capabilities the value chain analysis would show that with viewing the internal activities; this analysis would show where the company’s competitive advantages as well as disadvantages lies. This analysis would then depict the company’s core competencies. When a company is said to be competing through its cost advantage; it would most likely try to carry out its internal activities at a much lower cost than its competition would want to.

Read More

Amazon Big Data Case Study

928 Words | 4 Pages

The business model of Amazon ensures that the product is available for the customer at the best possible price. The fast shipping strategies also ensure customer satisfaction. These aspects offer an excellent value proposition to the customer. Since Amazon is present globally and is successfully into business for a long time period, the strategies of Amazon are sustainable.

Read More

Diversification Strategy Of Amazon

1112 Words | 5 Pages

Amazon has achieved many milestones from starting in the founder’s garage in 1994 to the growth in revenue to US$147.8 million in 1997 and then to the revenue growth of US$177.866 billion in 2017 (Amazon, 2018a, Amazon, 2018b and Jurevicius, 2018). These milestones were achieved through tenacious focused strategies of meeting their customers’ needs and wants. These strategies have maintained and expanded their customer base locally and internationally and have increased its market shares and profit over the last two decades. In addition, projection for the company’s growth and expansion for the next three to five years looks positive as it predicted to grow at the same rate with its expansion internationally and continued focused in satisfying consumers’ wants (Amazon, 2018a). Although, some factors such as governmental policies, legal issues and natural disasters could pose a threat to Amazon’s growth plans, the management team led by the founder and Chief Executive Officer (CEO) are working on mitigating the risk (Amazon, 2018a).

Read More

Amazon Customer Analysis

829 Words | 4 Pages

Due to this, the portal is known to have specific days where they give massive discounts to their buyers. Competitors The giant companies that want to disrupt Amazon Amazon isn’t under attack from just start-ups, though. There are big companies with deep

Read More

Globalization Case Study: Amazon

1105 Words | 5 Pages

Today, many people prefer to order products from Amazon instead of going to stores or malls. c. DESCRIPTION OF MY SUBJECT (AMAZON.COM): Amazon (Amazon.com) is the world’s largest online retailer and a prominent cloud services provider. The company was initially a book seller, then later it expanded to sell a wide variety of consumer goods and digital media as well as its own electronic devices, such as the Kindle e-book reader, Kindle Fire tablet and Fire TV, a streaming media adapter (Rouse, 2018).

Read More

Amazon's Culture: A Case Study

874 Words | 4 Pages

The company also promote aggressiveness among employees and because of that, the employees consider each other as competition and not as a team. Since the social context is becoming really important, Amazon is forced to change their corporate culture. Their culture had brought a lot of success to the company, but it is now however time to change towards a positive environment and a positive culture that

Read More

More about Amazon's Core Value Strategy

Related Topics

Open Document