Amazon’s Strategic Plan

Amazon’s Strategic Plan

Table of Contents

INTRODUCTION                3

History of Amazon           3

VISION STATEMENT        5

MISSION STATEMENT    6

INDUSTRY OVERVIEW    7

EXTERNAL ENVIRONMENTAL ANALYSIS 7

Political, Governmental, and Legal Forces             7

Social, Cultural, Demographic, and Environmental Forces              8

Economic Forces              8

Technological Forces      10

Competitive Forces         11

EXTERNAL FACTOR EVALUATION              12

Opportunities    12

Expanding to New Countries      12

Introduce a Spanish Website to Increase the Amount of Hispanic Customers       13

Same-Day Delivery          13

Promote Small Businesses           13

Threats 14

Multiple Lawsuits             14

Seasonality of the Business         14

Aggressive Competition                15

Seller Fee Rate  15

INTERNAL FACTOR EVALUATION              15

Strengths            15

Disruptive Technology Innovator              15

Strong Brand Name Due to Customer Service Experience             16

Variety of Product Availability    16

Most Visited Online Retailer       16

Weaknesses      17

Limited Grocery Market                17

Overzealous Expansion 17

Network/Internet Reliability       17

Third-Party Vendors and Their Impact on Customer Satisfaction                17

SWOT ANALYSIS MATRIX              18

STRATEGIC POSITION AND ACTION EVALUATION (SPACE)            19

Financial Strength            19

Competitive Advantage                19

Environmental Stability 20

Industry Strength            20

LONG-TERM OBJECTIVES              20

STRATEGY SELECTION    22

IMPLEMENTATION ACTIVITIES   23

Product Development Strategy 23

Implementation #1 – Market Segmentation (Marketing)              23

Implementation #2 – Delivery Drone Development (Research and Development)            24

Implementation #3 – Amazon Trucks (Management-Operations)             24

Implementation #4 – Optimize Supply Chain/Fulfillment Capabilities (Management-Operations)               25

Implementation #5 – Increase Hub Cities by Upgrading Distribution Centers (Management-Operations)                25

Implementation #6 – Offer Competitive Pricing (Marketing/Finance)      25

Market Penetration Strategy      26

Implementation #1 – Increase Media Advertising (Marketing)    26

Implementation #2 – Face-to-Face Advertising (Marketing)         26

Implementation #3 – Increase Sales Promotion with Complimentary Items Associated with the Product (Marketing)       27

Implementation #4 – Improve Competency and Relationships with Third-Party Companies (Management-Operations)  27

Implementation #5 – Training of Employees (Management-Operations)               27

Implementation #6 – Focus on Customer Retention (Management-Operations)                28

CONCLUSION    28

APPENDIX           29

Appendix 1 – Evaluation of Mission Statement   29

Appendix 2 – SWOT Analysis Matrix        29

Appendix 3 – SPACE Matrix         30

Appendix 4 – External Factors Evaluation Matrix                31

Appendix 5 – Internal Factors Evaluation Matrix                32