Assignment 3: Market Position Analysis
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assignment_2.docxAssignment 2: Discussion—Crafting a Strategy to Fit the Business
The Web site Amazon.com once aimed to be the world’s largest bookseller. Now the company offers a wide range of products and services to consumers, operating online retail storefronts for partners and developing and selling its own manufactured products (such as Kindle).
Can a company like Amazon.com have a strong business model but a weak strategy? Using the Internet, find Amazon’s most recent annual report and peruse its main sections.
Based on your analysis of the report, respond to the following:
· How has the company’s strategy changed from the original generic strategy that was applied?
· How would you describe the central elements of Amazon’s strategy?
· In your opinion, what elements are involved in implementing the following business strategies?
· A low-cost provider strategy
· Differentiation
· Diversification
· Market timing
Write your initial response in approximately 300 words. Apply APA standards to citation of sources.
By Saturday, March 19, 2016, post your response to the appropriate Discussion Area. Through Wednesday, March 23, 2016, review and comment on at least two peers’ responses. Explain what you find to be the most helpful advice and why you would consider it a possible best practice.
Amazon. (2012). http://www.amazon.com
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Assignment 2 Grading Criteria |
Maximum Points |
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Initial response: · Was insightful, original, accurate, and timely. · Was substantive and demonstrated advanced understanding of concepts. · Compiled/synthesized theories and concepts drawn from a variety of sources to support statements and conclusions. |
16 |
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Discussion response and participation: · Responded to a minimum of two peers in a timely manner. · Offered points of view supported by research. · Asked challenging questions that promoted the discussion. · Drew relationships between one or more points in the discussion. |
16 |
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Writing: · Wrote in a clear, concise, formal, and organized manner. · Responses were error free. · Information from sources, where applicable, was paraphrased appropriately and accurately cited. |
8 |
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Total: |
40 |
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Amazon.com grabbed the growing internet business in the world and wanted to sell their products through online. It attracted more customers. Amazon.com made use of internet to create value to the customer. Amazon.com understood the requirement of people and growing competition in the online business. It made them shift their focus to various diversified product range. Amazon began to sell products, and they understood the importance of growing thrust for technology and began to make innovative products that will meet customer’s requirement.
Amazon.com was mainly focusing on the customers from the beginning of the business. With the growth in the business, there is increasing complexity. Amazon requires satisfying the sellers, enterprises, content creators and employees. Amazon has placed innovation and technology as one of the primary criteria for the business to sustain in the market. Amazon has changed from its initial focus strategy to the low-cost strategy and differentiation strategy (Cohan, 2013).
Central element:
Amazon is a more customer-centric company. They seek “Earth’s most customer-centric company” (Amazon.com, 2013, p. 14). Amazon gives more priority to the current and future requirements of customers. They try to cater all best possible requirements of people in a better and affordable manner. Amazon wanted to reach more people and wanted to popularize their brand worldwide. It is the main criteria to existing in the competitive market. Pricing of the product is a significant element of the Amazon strategy.
Innovation is an important element in the Amazon strategy. Amazon maintains secrecy before launching the product. Employee empowerment is the main strategy of Amazon. New product segment and focus in technology improvement are the main strategies of the company. Besides customer awareness they mainly focus on retaining and loyal customers. It is the central element of Amazon strategy.
A low-cost provider strategy:
Prime is the element of lower cost strategy. Overall cost of procuring the materials and supply chain management must be lower that will enable the company in providing products at lower cost (Referenceforbusiness.com, n.d.). Economies of scale and effective supply chain management are an essential element of this strategy.
Differentiation:
Amazon must understand the customer requirement in advance. Company must be in a position to provide some unique product and service to customers that are not provided by other competitors (Referenceforbusiness.com, n.d.). In this case, a company must always watch the movement of their competitors and must devote more time to providing unique services to the customers. Company must maintain secrecy about their next move, and it must be introduced new into the market.
Diversification:
Amazon sells various items through their website that includes books, apparels, shoes, various electronic products and grocery, etc (Amazon.com, 2013, p. 3). In this case, it is essential to manufacturing or procures more diversified product range from various sellers across the globe (Referenceforbusiness.com, n.d.). Company must ensure that all products are available in various categories held by the company.
Market timing:
Company must understand the market climate before releasing any product. Company must be proactive and must have effective market research team. Thus, release of a product on time so that there will be greater market response.
References
Amazon.com. (2013). Amazon.com Investor Relations: Annual Reports and Proxies. Retrieved from
http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsannual
Cohan, P. (2013, January 30). Why Wall Street Loves Amazon, Not Apple - Forbes. Retrieved from
http://www.forbes.com/sites/petercohan/2013/01/30/why-wall-street-loves-amazon-not-apple/
Referenceforbusiness.com. (n.d.). Strategy - advantage, benefits, cost, Limits on strategic choices. Retrieved from
http://www.referenceforbusiness.com/small/Sm-Z/Strategy.html
