Amazon Written Assignment – Chapter 5 – Week 7

Please read the three Amazon articles posted in the readings section.

Then answer the following questions based on information from the readings.
1. Amazon is a company that needs many business level strategies for each industry
segment in which it offers products. It also needs an overarching Corporate Strategy.
What types of business level strategies is Amazon trying to implement? Explain each
answer.
Amazon's background, revenue model and sources for the latest business results are
really appreciable. We can also learn from their approach to digital marketing since they
use digital marketing acronym RACE:

Reach: Amazon's initial business growth based on detailed approach to SEO and AdWords
targeting millions of keywords.
Act: Creating clear and simple experiences through testing and learning.
Convert: Using personalization to make relevant recommendations and a clear checkout process
that many now imitate.
Engage: Their focus on customer experience, "Customer Obsession" as they call it is shown by
the way they consistently outperform other retailers in their ACSI customer satisfaction rating
too.
The corporate strategy of Amazon can is described as concentric expansion. This methodology
depends on utilizing innovative technological abilities for business achievement and following a
cost administration strategy aimed for offering the greatest value for its clients at the most
reduced cost. Amazon has maintained its business around customers that find Amazon as one of
the best online portals for e-commerce shopping

2. What appears to be Amazon’s overarching corporate strategy? Explain your answer.

Amazon performs exceptionally efficiently measured against revenue per visitor, which
is one of the key measures for any commercial website, whether it's a media site, search
engine, social network or a transactional retailer or offers travel or financial services. Of
course profit per user would be quite different due to the significantly lower costs of
other .coms like Facebook and Google.

When it first launched, Amazon’s had a clear and ambitious mission. To offer:

Earth’s biggest selection and to be Earth’s most customer-centric company.

Today, with business users of its Amazon Web Service representing a new type of
customer, Amazon says:
 3. this goal continues today, but Amazon’s customers are worldwide now and have grown to
include millions of Con-sumers, Sellers, Content Creators, Developers, and Enterprises.
Each of these groups has different needs, and we always work to meet those needs, by
innovating new solutions to make things easier, faster, better, and more cost-effective.

3. Do you think Amazon is going in the right direction? What can be some pitfalls for Amazon?
I don't think there is any problem in the direction Amazon is currently going on. By using a
meticulous business model, adequate and market centric marketing strategy, greater innovation,
technological resilience, standard supply chain measure, innovative leadership Amazon is now
one of the most valuable brand in the world. It has customers from 185 countries and sellers from
100 countries. If any company has such robust global presence how someone can say that
Amazon is not going in the right direction. It is absolutely on the right track where such
companies should be in. It is quite difficult to get any major pitfalls for Amazon but some of the
pitfalls can be more buyer centric process, the website should be more user friendly.