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Case Study Part 1: (Name of Company)
(Student Name)
Liberty University
BUSI 690: Policy & Strategy in Global Competition
Dr. Alvin Holliman
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Existing Mission, Objectives, and Strategies
Existing Mission Statement
Mission statements are declarations of a company that describes the corporation’s present
business and purpose (Thompson et al, 2020). Mission statements depict the realm of the
business and the purpose it serves in the industry it is in. There are three aspects of a mission
statement that a company needs to research and contemplate before declaring an official mission
statement. These three aspects include identifying the company’s products/services, details the
buyer needs that the company seeks to deliver and the customers that it serves, and it identifies
the company as an individual company (Thompson et al, 2020, p. 26). The current mission
statement of Amazon is “We strive to offer our customers the lowest possible prices, the best
available selection, and the utmost convenience” ("Amazon mission statement 2020 | Amazon
mission & vision analysis," 2020). The company is continuously expanding to offer its customers
a wide variety of products and services at the lowest possible prices with the added convenience
factor that makes Amazon so successful.
The current mission statement of Amazon sums up what the company is striving to do for
its customers on a price platform and a convenience platform. Amazon is a large ecommerce
corporation that it has expanded its services from its original start up roots with retail sales to
music, books, video streaming, and grocery delivery. Amazon has expanded its capabilities to
fulfill the needs of its customers and continues to do so as the company sees a need to be
fulfilled.
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Firm Structure Analysis
How a firm is structured is a major factor in the success of the company. Amazon has
been molded and shaped by the CEO Jeff Bezos and his directional guidance for the company in
its many endeavors and expansions. With Jeff Bezos being the founder of the company it is his
direction and guidance that has led Amazon to be so successful in its endeavors such as
transforming to a digital platform to fulfill customers’ needs whether it is from the Kindle
bookstore or listening to Amazon music.
Amazon Strategic Positioning
Amazon is the largest ecommerce company in the United States. Amazon rolled out its
prime membership to open doors for customers to enjoy paid membership perks and free two day
shipping. Amazon’s CEO has been reluctant to release numbers as to subscribers linked to its
success story, but on one account in 2018 Jeff Bezos stated that the company had 100 million
prime subscribers worldwide ("Amazon Prime's numbers (and influence) continue to grow,"
2020). Amazon also couples its video streaming along with prime memberships to allow access
to television shows, movies, and its own Amazon original movies and series.
New Mission Statement
The current mission statement of Amazon captures its efforts to provide products for
customers that are priced as low as possible from a wide variety of products and also it
encapsulates the importance from the customers stand point of convenience. The company has
expanded and acquired different types of products and services that the mission statement needs
to be revised to incorporate the up to date business strategy.
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The new mission statement that is recommended for Amazon is as follows “Amazon
provides a wide variety of (1) (2) retail products and services from clothes to grocery items at
the lowest price possible, from the best selection available, and at an unparalleled convenience
(3) globally. Amazon is committed to expanding responsibly to meet the changing needs of its
customers by (4) utilizing unmatched technology to fulfill orders, provide excellent customer
service, and focus on future (5) growth and expansion. (7) Amazon offers not only the best
variety, price, and convenience for our customers, but also provides a (6) competitive and
equitable place to work for our employees with (9) competitive wages and benefits. Amazon also
takes pride in giving back by (8) investing in our employees, communities, and in corporate
social responsibility”.
Existing Business Model Analysis
Two components of a business model must be present to indicate success for a company.
The two components are its customer value proposition and its profit formula; the customer
value proposition spells out how and what a company will provide to satisfy customer wants and
needs and at a price the consumer will deem of value and the profit formula details the cost
structure the company will go with to allow for a profitable return coupled with the price its
customers deem valuable (Thompson et al, 2020). Through the historical shaping Amazon has
been through to become the company it is today, Amazon has adopted and changed its business
model several times to meet the demands of the consumer and the expansion of the company as
well. Amazon’s original business model was “sell all, carry few” and over the years has now
come to incorporate the “sell all, carry more” concept which has recently expanded to the
grocery sector and online streaming market (Thompson et al, 2020). Of course there are pros and
cons to expanding to the “sell all, carry more” business model. Some of the obvious cons include
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massive diversification management, competing with long term successful competition, and
growing pains. The pros include wide variety for consumers, market penetration, and a strong
brand name. The pros of the business model are what have carried Amazon so far. Though the
cons have thrown some curves to the business model at Amazon the business model continues to
adapt for the company and it provides for its consumers.
SWOT Analysis
The purpose of the SWOT analysis is to analyze the strengths, weaknesses, opportunities,
and threats that Amazon encapsulates. Identifying these different aspects of Amazon will permit
important data to be revealed to capitalize on important aspects and also to address any potential
hazards to the company. This will allow the company to align its different ventures to the same
core values whether that means expanding or divesting. The matrices for the SWOT analysis of
Amazon is found in the attached appendices: Internal Factor Evaluation (IFE) Matrix – Appendix
A; External Factor Evaluation (EFE) Matrix – Appendix B; TOWs Matrix – Appendix C; Group
Map – Appendix D.
Strengths
One of the strengths of Amazon is its brand name. Almost anyone in the United States
knows what Amazon is and the growth the company has gone under in the last two decades. Not
only is the brand name growing in the United States by increased subscriptions, but also
increased subscriptions abroad ("Amazon Prime's numbers (and influence) continue to grow,"
2020). Amazon was also ranked the #2 company to work for by Forbes ("Amazon ranks #2 on
Forbes worlds’ best employers list," 2020). Amazon also is aware that there is a growing
population of students using prime and offers a free 6 month trial period and after the trial period
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is over prime is offered at a discounted rate for four years of until the student graduates,
whichever comes first ("Amazon.com help: Prime student," n.d.). Amazon is also known for its
proprietary order filling technology that is unparalleled and continues to allow the company to be
a continuous leader in the market (Zhang, 2019). Another strength that Amazon possesses is that
its revenue has increased. According to Forbes, Amazon’s year over year increase was 37% in
October of 2020 (Forbes, n.d.). Also, Amazon has increased the number of employees it has to
aid in the increase of sales fulfillment ("Amazon ranks #2 on Forbes worlds’ best employers list,"
2020). Amazon has a diversified platform to offer its customers different products and services
such as Kindle, Amazon video, and Amazon music. These different platforms allow Amazon to
fulfill the different needs of its customers. Amazon is also known for investing in sustainable
practices which include minimizing its carbon footprint, renewable energy, and sustainable
transportation to name a few. Additionally Amazon’s strength for acquisitions is best known for
the Whole Foods acquisition in 2017 thus far, which has met some stumbling blocks along the
way, but it has also thrusted Amazon in the grocery sector as a competitor to be recognized.
Weaknesses
Though Amazon has some pretty impressive strength it does not go without some
weaknesses. Amazon in an attempt to enter the smartphone market launched its Fire phone in a
major loss as the product did not take off as expected. Amazon also has increased operational
costs from the Whole Foods Acquisition (Thompson et al, 2020). Amazon trying to stay in
competition with Wal-Mart has very little experience in brick and mortar management (Jindal et
al, 2021). Also, the lack of management know how when it comes to grocery sustainability for
perishables is limited as Amazon does not have a history nor the know how in the grocery sector
for perishables to stay fresh for delivery, this in turn causes another weakness to surface as the
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issue of local hubs for perishable products is lacking along with a partnership with local
suppliers; opening up the sector for grocery delivery also exposes the need for a focused
approach to delivering specifically groceries and validating the delivery methods (Thompson et
al, 2020). Although Amazon has acquired Whole Foods the pricing strategy that Amazon carries
out with its online platform does not follow through with its brick and mortar Whole Foods
stores (Hillen & Fedoseeva, 2021). A major competitor in Asia, Alibaba, is putting local pressure
on Amazon and limiting its presence in the global sector (Gamble et al, 2020). With Amazon’s
streaming capability it has expanded dramatically to include partnerships with sports
broadcasters and television companies to stream certain events and shows, but still stacks up
second compared with Netflix ("Amazon vs. Netflix: The fight of the century," 2020). A retail
concern for Amazon is the ability to verify authentic products that individual sellers list on
Amazon (Forbes, n.d.).
Opportunities
The opportunities for Amazon include numerous opportunities to expand the Amazon
name and expand its customer base as well. The acquisition of the company Ring has opened up
a door for Amazon to expand its delivery capabilities through home security technology
(McPherson, 2018). This will allow visual data for delivery systems for Amazon to ramp up its
capabilities and its credibility as well. Another opportunity for Amazon would be to expand into
other geographic markets. Since Amazon is a global competitor opening up into unpenetrated
geographic locations would open up doors to expand its customer base as well. A great
opportunity for Amazon would be to acquire a delivery company such as Door Dash to expand
its capabilities in man power for deliveries, but also delivery technology for its perishable
delivery services. Since Amazon acquired Whole Foods it has had some bumps in the road with
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figuring out different systems for dealing with perishable items in the grocery industry. An
opportunity for Amazon would include acquiring a management team with specific grocery
sector experience and also expanding current management knowledge in the grocery sector with
training and research on the grocery industry and how competitors deal with big issues such as
perishable items. Investing in local suppliers for its perishable items would also be another
opportunity to broaden and strengthen the Amazon network. A major focus with Amazon is its
capability to deliver to its customers expediently; investing in adding more delivery hubs to
expand its delivery capability would be another great opportunity. With Amazon fresh stores
open on the West Coast and doing pretty well Amazon should expand its store base in the United
States by opening more Amazon Fresh stores. Amazon has a vast online seller platform and to
keep that platform reputable Amazon should seize the opportunity to invest in technology to
verify its sellers and the items being sold. With the rising awareness of businesses taking part in
sustainable practices Amazon has a great opportunity to also invest in ecofriendly delivery
methods such as battery operated vehicles and emission efficient delivery methods.
Threats
As with any company whether large or small there are threats that must be addressed in
order for a company to be aware of areas that can potentially cause damage. Wal-Mart is
expanding to increase its competition with Amazon by offering online shopping and delivery for
retail and grocery items (Jindal et al, 2021). In the Asian market Amazon has been met with slow
market growth due to expansion by Alibaba, this could threaten the expansion that Amazon is
trying to do in Southeast Asia ("showdown brews between Amazon and Alibaba, far from home
(Published 2017)," 2017). The expansion of its competitors as a whole is another threat.
Competitors such as Netflix and Disney on streaming services provide a threat to Amazon as
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they acquire other companies to add to their library of streaming capabilities. Netflix is the
largest streaming service and Disney continues to add to its acquisitions making them a growing
threat to Amazon (Pfeifer & Conroy, 2017). Two threats can be added to Amazon since the
COVID-19 pandemic and those include the economic downturn with a large number of people
unemployed and a swift change in consumer needs to cheaper competition. Amazon also faces
rising energy prices which threaten the financial aspect of Amazon (“Short-term energy outlook”,
n.d.). When a company has an online platform there is always the increased risk of cybercrime.
Amazon faces the continued threat of cybercrime which can cause irreparable damage.
Restrictive foreign trade policy has been on the rise with the back and forth tariffs between the
United States and China. Consumers also have growing bargaining power which can lure
Amazon customers to cheaper competition. Though Amazon has been a beyond belief successful
company its business model is easily imitable which causes a threat to the company when
competitors use the same model.
The SWOT analysis is as follows: the internal strengths have allowed Amazon to become
a strong company not only in its home country, but also expanding globally. The internal
strengths that have been built by making critical decisions on opportunities have allowed
Amazon to remain a force in the ecommerce sector. The opportunities that are at Amazon’s feet
and in the future will also allow Amazon to capitalize on critical components that will strengthen
the company and solidify its market strength even more. Despite its stated internal weaknesses
and external threats Amazon is continuing to acquire more companies to build its capabilities and
competitive strength among its growing competition. Amazon’s competitive strategy to expand
into all major retail categories is proving to be a feat that has had great competition, but also one
that has provided more opportunities for Amazon to grow and be successful.
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TOWS Analysis
In order for a company to strategically take advantage of its strengths, weaknesses,
opportunities, and threats a TOWS analysis must be undertaken. The TOWS analysis for Amazon
takes the SWOT analysis and combines its strengths and opportunities to combat threats and
weaknesses it has. The SO strategy includes working with companies that Amazon has acquired
to use the technology gained by the acquisitions such as Ring and Whole Foods to enhance and
to continue to improve the platforms and systems it has (McPherson, 2018). Also Amazon should
continue to strive to be the ecommerce leader globally and use its strong brand name to acquire a
complimentary company such as Door Dash. The WO Strategy for Amazon would be to invest in
local suppliers to combat its lack of distribution hubs for grocery delivery (Thompson et al,
2020). Also, to combat its increased operations cost it would benefit Amazon to hire new
management that has experience in the grocery sector to bring fresh perspective of how to bring
operations cost down. With Amazon’s weak brick and mortar presence it should open up new
Amazon Fresh stores to bring an increased physical manifestation. The ST strategies include to
invest in increased countermeasures for cybercrime as Amazon suffered loss in funds from a
cyberattack in 2019 ("Amazon suffers ‘fraud attack' from cybercriminals," 2019). Also, under
this strategy opening up more Amazon Fresh stores would also combat competitor expansion.
The intense competition between the ecommerce sectors could be held at bay by the acquisition
of Door Dash to bring another element of convenience and acquired technology to Amazon. The
WT strategies include developing ways to cut costs without compromising consumer
convenience and to develop a strategic alliance with a competitor in the Asian market to increase
profits in global expansion.
Group Map Analysis
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Under the BCG Matrix, Amazon is compared and contrasted with Wal-Mart and Alibaba
on a global scale. The analysis of Amazon is based on the firm as a whole in retail sales along
with Wal-Mart and Alibaba. When it comes to retail market share Amazon has 8.8%, Wal-Mart
has 15.9%, and Alibaba has 2.1% ("Top 100 retailers 2020," n.d.). The group map shows how
Wal-Mart controls the market share between the three, but has the least growth at about 19
billion. Alibaba has the least amount of market share with growth at about 20 billion. Amazon is
second place with total market share and grew about 25 billion (“Top 100 retailers 2020,” n.d.).
Competitive Forces Analysis
With the increase of global responsibility on the rise it is important for a company to
invest in sustainability practices. Though some may not place a high competitive force on
sustainability it is important and will continue to be a growing sociocultural force. Amazon
committed in 2019 to becoming a net zero carbon company by 2040 ("Amazon sustainability,"
n.d.). Another competitive force for Amazon is global market penetration. Amazon does business
in several countries around the world which include several countries in Europe, United
Kingdom, Germany, India, Italy, Japan, Spain, and France to name a few ("Amazon around the
globe," n.d.). Another competitive force that is strong for Amazon is customer service. Amazon
keeps an eye on competition, but it is its customers that it obsesses about ("Leadership
principles," 2020).
Amazon is a retail giant when it comes to online sales, but its brick and mortar presence
is negatively affecting the company. Amazon is opening up brick and mortar stores to allow for
more customer convenience as this is the major edge Wal-Mart has on Amazon ("Amazon opens
brick-and-Mortar stores meant to emphasize convenience," 2019). Amazon exudes with its
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research and development technology when it comes to warehouse fulfillment. Using state of the
art technology and specific hubs to fulfill orders is something that gives Amazon a competitive
advantage ("Our facilities," n.d.). Another competitive force that some may not rate as very high
that Amazon prides itself on is employee dedication. Amazon ranked #2 on Forbes world’s best
employers list and that is a great accomplishment which drives the human capital to be able to
expand its business ("Amazon ranks #2 on Forbes world’s best employers list," 2020).
Increased financial profits from year to year continue to rise which is an indication of
successful competition. Net sales, operating income, and net income all increased in the year
2020 ("Amazon.com announces fourth quarter results," n.d.). Customer loyalty is a competitive
force with its increase Amazon Prime memberships identifying customer bargaining power.
Prime members grew to 147 million members in the United States in 2021 compared to a year
ago ("Amazon Prime has 112 million members in the US," 2020). Global market share for retail
sales is growing for Amazon, though it is not the amount of Wal-Mart which is a rival seller, but
it is continuing to grow ("Top 100 retailers 2020," n.d.).
Product quality of Amazon goes hand in hand with customer service, if the quality of the
product or service does not meet customer satisfaction it will be made right. Amazon ranked #5
on the American Customer Satisfaction Index over twenty years running ("Awards &
recognition," 2020). Product diversification is ever expanding at Amazon with the acquisition of
Whole Foods in 2017 Amazon can now add groceries to its diverse offerings (Thompson et al,
2020). Amazon offers competitive prices for its products in so much that brick and mortar stores
are now advertising to match or beat online Amazon prices for the same products (Umoh, n.d.).
Details can be found in Appendix E.
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References
A showdown brews between Amazon and Alibaba, far from home (Published 2017). (2017,
October 22). The New York Times - Breaking News, US News, World News and
Videos. https://www.nytimes.com/2017/10/22/business/alibaba-amazon-southeast-asia-
lazada.html
Amazon.com announces fourth quarter results. (n.d.). Amazon.com, Inc. -
Overview. https://ir.aboutamazon.com/news-release/news-release-
details/2021/Amazon.com-Announces-Fourth-Quarter-Results/
Amazon around the globe. (n.d.). Sustainability -
US. https://sustainability.aboutamazon.com/about/around-the-globe?
energyType=true&workerCount=true&engagementProgram=true&productCategory=true
Amazon mission statement 2020 | Amazon mission & vision analysis. (2020, June 11). Mission
Statement Academy. https://mission-statement.com/amazon/
Amazon opens brick-and-Mortar stores meant to emphasize convenience. (2019, September 24).
NPR.org. https://www.npr.org/2019/09/24/763958834/amazon-opens-brick-and-mortar-
stores-meant-to-emphasize-convenience
Amazon Prime's numbers (and influence) continue to grow. (2020, January 16).
Fortune. https://fortune.com/2020/01/16/amazon-prime-subscriptions/
Amazon Prime has 112 million members in the US. (2020, January 24). Digital Commerce
360. https://www.digitalcommerce360.com/article/amazon-prime-membership/
Amazon ranks #2 on Forbes world’s best employers list. (2020, November 9). About Amazon.
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Amazon suffers ‘fraud attack' from cybercriminals. (2019, July 4). CISO MAG | Cyber Security
Magazine. https://cisomag.eccouncil.org/amazon-suffers-fraud-attack-from-
cybercriminals/
Amazon sustainability. (n.d.). Sustainability - US. https://sustainability.aboutamazon.com/?
energyType=true&workerCount=true&engagementProgram=true&productCategory=true
Awards & recognition. (2020, September 30). About
Amazon. https://www.aboutamazon.com/about-us/awards-recognition
Hillen, J., & Fedoseeva, S. (2021). E-commerce and the end of price rigidity? Journal of
Business Research, 125, 63-73. https://doi.org/10.1016/j.jbusres.2020.11.052
Jindal, R. P., Gauri, D. K., Li, W., & Ma, Y. (2021). Omnichannel battle between amazon and
walmart: Is the focus on delivery the best strategy? Journal of Business Research, 122,
270-280. https://doi.org/10.1016/j.jbusres.2020.08.053
Leadership principles. (2020, September 29). About
Amazon. https://www.aboutamazon.com/about-us/leadership-principles
McPherson, D. (2018). Ring acquisition may open door for amazon to deliver inside
homes. Response (Duluth, Minn.), 26(7), 9-9.
(n.d.). Forbes. https://www.forbes.com/sites/kimberlywhitler/2020/08/08/amazons-business-
model-weaknesses-and-how-walmart-and-other-retailers-can-exploit-them/?
sh=4ac7517d1f4e
Our facilities. (n.d.). About Amazon. https://www.aboutamazon.com/workplace/facilities
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Pfeifer, P. E., & Conroy, R. M. (2017). Valuation of netflix, inc.1. Darden Cases, , 1-
13. https://doi.org/10.1108/case.darden.2016.000339
Short-term energy outlook. (n.d.). U.S. Energy Information Administration (EIA).
https://www.eia.gov/outlooks/stereo/report/electricity.php
Thompson, A., Peteraf, M., Gamble, J., Strickland III, A. (2020). Loose leaf: Crafting and
executing strategy: Concepts and cases. McGraw-Hill Education.
Umoh, R. (n.d.). 10 brick-and-mortar stores that will match lower prices found on Amazon.
CNBC. https://www.cnbc.com/2018/07/10/10-stores-that-will-match-amazons-lower-
prices.html
Zhang, J., Onal, S., Das, R., Helminsky, A., & Das, S. (2019). Fulfilment time performance of
online retailers – an empirical analysis. International Journal of Retail & Distribution
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Appendices
1
2
3
4
5
6
7
8
3
10
aap
oe
Strong
brand
name
creased
number
of
subscribers
#2
best
company
to
work
for
by
Forbes
count
for
larger
member
population
like
students
Proprietary
warehouse
technology
creased
revenue
ers
P.
rms
Sustainable
practices
Successful
acquisition
of
Whole
Foods
creased
employee
hiring
to
launch
into
mobile
phone
ck
of
management
knowledge
in
grocery
industry
Increased
operational
costs
-w
number
of
brick
and
mortar
stores
Struggling
presence
in
Asian
market
wer
market
share
in
streaming
services
erification
of
product
authenticity
w
number
of
distribution
hubs
ck
of
capable
delivery
service
for
online
grocery
g
schemes
Whole
Foo
IFE
Score
wha)
wlalalalwlalw
as
Np el
ePN
ype
ele)
ely
16
Appendix A – IFE Matrix
Appendix B – EFE Matrix
Oo
N
Oo
A
WwW)
YR
RB
oS
1
2
3
4
5
6
7
8
3
RB
oS
echnology
gro
in
"Ring"
acquisition
Expansion
in
Southeast
Asian
market
cquire
complimentary
company
"Door
Dash"
Invest
in
management
training
of
grocery
industry
Invest
in
local
suppliers
for
grocery
delivery
cquire
management
with
experience
in
grocery
sector
Expand
number
of
delivery
hubs
Open
more
Amazon
Fresh
stores
Invest
in
online
v
ition
of
products
gso
Invest
in eco:
dly
delivery
methods
Increased
intensity
in
competition
Expansion
of
Alibaba
in
the
grocery
sector
in
Asian
market
Expansion
of
Wal-Mart
delivery
options
Shift
in
consumer
needs
to
cheaper
competition
Rising
energy
prices
Cybercrime
Restrictive
foreign
trade
with
China
Growing
consumer
bargaining
power
Imitation
of
Amazon
business
model
Economic
downturn
due
to
pandemic
EFE
Score
NEN
NIN
NIM
NY
Ww]
wlny
WEN
NIN
NIN NIN
NY]
w
17
Appendix C – TOWS Matrix
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SO Strategies
WO Strategies
-Working with acquired companies to continue
improving technology capabilities
- To continue striving to become the global
leader in retail sales and ecommerce
-Use the strong brand name of Amazon to
acquire a complimentary company to thrust
Amazon forward in services
-Invest in local suppliers to combat lack of
distribution hubs
-Acquire management with previous grocery
knowledge to combat increased costs
-Open more Amazon Fresh stores to compete
with brick and mortar presence
ST Strategies
WT Strategies
- Invest in online verification technology to
combat cybercrime
- Open more Amazon Fresh stores to combat
the expansion of competition
-Acquire a complimentary company such as
Door Dash to combat the intense competition
in delivery services
-Develop a strategic alliance with a competitor
in the Asian market to allow for successful
expansion in the Asian sector and increased
profits
-Create new ways to lower costs without
compromising product and service quality
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Appendix D - Group Map
Appendix E – Competitive Forces Matrix
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