As the number of publications referring to Amazon increased formidable during the last years, it is a highly discussed retail brand, which is becoming more and more important. In July 2016, the UK trade marketing association DMA1 published a study showing Amazon as favorite retail brand amongst competitors like John Lewis, Marks & Spencer, eBay and ASOS. Every fourth of the 1000 participants voted for Amazon, even though they were not given a shortlist with answers, but an empty text-box to fill in their favorable retail brand.
This paper deals with aspects referring to the research fields Advanced Strategic Man- agement, Business Development and International Business Game. At the end of each part a summary with the most fundamental information helps to build a broad overview.
Table of Contents
1. Introduction
2. Part I: Advanced Strategic Management
2.1 Industry analysis of Amazon.com
2.2 Amazon.com’s strategy
2.2.1 Roadmap of company’s strategic intent
2.2.2 Pros and Cons of strategic choices
2.2.3 Rational with concluding remarks
2.3 Full retail stores compared to pure online stores
3. Part II: Business Development
3.1 Amazon.com’s strategy during 2007 to early 2010
3.2 Amazon.com’s strategic capabilities
3.3 Evaluation of Amazon.com’s diversification strategy
3.4 Future strategy of Amazon.com
4. Part III: International Business Game
4.1 Network effects
4.2 Transfer prices
4.3 Individual interest rate for long-term debt
5. Bibliography
Objectives & Core Topics
The primary objective of this paper is to conduct a comprehensive strategic analysis of Amazon, evaluating its business development and international operations through the lens of key economic theories and management frameworks.
- Strategic Management analysis including Porter's Five Forces and PESTLE.
- Evaluation of Amazon’s diversification strategies and retail evolution.
- Analysis of corporate strategic capabilities using Porter’s Value Chain.
- Examination of international business concepts such as network effects and transfer pricing.
Excerpt from the Book
Industry analysis of Amazon.com
Porter’s Five Forces analysis is used to identify competitive rivalry amongst similar companies. Therefore, the focus lies on the Threat of New Entrants, Bargaining Power of Buyers, Threat of Substitute Products or Services, Bargaining Power of Suppliers and the Rivalry Among Existing Competitors in the micro-environment of a firm (cf. Porter 2008: 26 to 33).
By focusing on the threat of new entrants there is clear evidence that it might be impossible to replace Amazon in the environment of online retailers. On the one hand, it seems easier for companies to enter such markets because of the low entry barriers with the help of the internet. But it has to be taken into consideration that other obstacles like capital requirements in the form of initial investments, access to channels and state restrictions respectively regulations have to be respected. On the other hand, Amazon is one of the biggest players in the world markets with many years of experience, endless resources, tremendous know-how and a high buyer loyalty, which is strengthened by global advertising, an inimitable product differentiation and customer binding advantages through offerings like Amazonprime.
Summary of Chapters
1. Introduction: Outlines the significance of Amazon as a leading global retail brand and defines the research scope across strategic management and business development.
2. Part I: Advanced Strategic Management: Focuses on the industry analysis of Amazon using Porter’s Five Forces and elaborates on the company’s three-pillar strategic framework.
3. Part II: Business Development: Analyzes the company’s historical strategy, internal capabilities, and its transition into physical retail and diverse product segments.
4. Part III: International Business Game: Explores theoretical international business concepts such as network effects, transfer pricing, and creditworthiness within the context of Amazon.
5. Bibliography: Provides a complete list of all cited academic sources, corporate reports, and industry data used throughout the study.
Keywords
Amazon, Strategic Management, Porter’s Five Forces, Business Development, Diversification, E-commerce, Network Effects, Transfer Pricing, Customer Centricity, Market Strategy, Value Chain, Creditworthiness, Retail, Innovation, SWOT Analysis.
Frequently Asked Questions
What is the core subject of this homework paper?
The paper focuses on an in-depth strategic analysis of Amazon.com, examining its growth, business model, and strategic decision-making processes.
Which key frameworks are applied in this study?
The study utilizes several renowned management frameworks, including Porter’s Five Forces, Porter’s Value Chain, Ansoff’s matrix, and SWOT analysis.
What is the main goal of the research?
The goal is to systematically evaluate Amazon's strategic intent, its competitive positioning, and how it manages international business challenges such as transfer pricing and network effects.
Which methodological approach does the author use?
The author uses a qualitative research approach based on existing literature, case studies, and corporate data to analyze and justify Amazon's strategic movements.
What is discussed in the main part of the paper?
The main part covers the company's industry position, its evolution of strategy (specifically the "three-pillar" approach), strategic capabilities, diversification, and the economic impact of global operations.
Which keywords best characterize this work?
Key terms include Strategic Management, E-commerce, Amazon, Diversification, Network Effects, and Market Strategy.
How does the paper evaluate Amazon’s physical retail expansion?
The paper discusses the move into physical "campus bookstores" and "automated retail stores" as a way to combine online efficiency with physical customer interaction and brand presence.
How does Amazon handle the challenge of transfer pricing?
The text explains transfer pricing as a risk management tool and details a specific tax dispute case involving Amazon and the IRS to illustrate how global companies manage costs and tax advantages.
- Citation du texte
- Ricardo Escoda (Auteur), 2018, Management Case Study Amazon. Analysis and Decision Making, Munich, GRIN Verlag, https://www.grin.com/document/425769
