Strategy Management

strategy_and_prioritization_selection.docx

Strategy and Prioritization Selection

Cost Leadership Strategy

· Amazon should continue selling its products at the lowest possible prices to maintain economies of scale.

· Amazon must resume its excellent return policies and free shipping offers to preserve its consumer base.

Growth Strategy

· Amazon can revamp its Kindle product line on a necessary periodic basis to gain a competitive edge in the tablet/e-reader industry.

· Amazon should consider the development of products like a laptop or a smart phone as they did for tablets

Technique Analysis

Cost Leadership and Differentiation Strategy for Amazon

· Premium products at non premium prices

· Free Shipping offers

· Amazon Prime program – free two day & discounted overnight shipping (Mirrow, 2005)

· Decrease the cost of Kindle and Amazon Web Services (AWS)

· Use Technology as an enabler in the form of AWS and Kindle

· Kindle Fire’s pricing model a differentiator in the tablet market.

· Amazon provides on-demand resources and long term storage service as part of their cloud services