Amazon Strategic Plan

Category: Analysis Essay

Strategic planning describes an organizational activity which helps in setting up business priorities, focusing resources and energy, strengthening business operations, securing the commitment of stakeholders including employees, establishing common grounds and agreements around certain business goals, and adjusting and assessing the direction of an organization as it responds to organizational changes. The Amazon.com Incorporations strategic plan describes disciplined efforts which help to produce fundamental actions and decisions able to shape and guide the organization, the customers it serves, the operations it is involved in, and why it does those operations. The companys strategic planning process over the past years have Shown all the qualities of an effective strategic plan. The ability of the company to establish an effective strategic plan enables it to articulate the direction of the organization as well as all the needed actions, which solidifies its progress and success.

Type of service

Type of assignment

Title

Writer level

Urgency

Number of pages

Currency

The following paper describes some elements of Amazons strategic plan. The environmental analysis is accomplished through SWOT analysis, which provides significant insights into both the internal and external markets. The strategy also provides additional information about the companys market niche, product portfolio, corporate strategies, business unit strategies, and operational strategies. It is also important to describe the factors which affect the selection and implementation of the companys strategies, the relationship between the companys strategies and policies. The company has managed to establish a strong strategic plan which is supported by its internal strengths and external opportunities, its unique market niche, along with its strong corporate, business, and operational strategies.

SWOT Analysis

Company Strengths	Weaknesses
1. The company has one of the worlds largest online portfolios 2. Strong presence in e-books 3. Strategic acquisitions and collaborations	1. The Amazon company has been engaged in a lot of patent infringement lawsuits 2. The companys cloud computing as well as web hosting services have experienced frequent outages.
Opportunities	Threats
1. Growing trend towards online display advertising 2. The market has been registering a significantly higher demand for cloud computing services	1. The Amazon.com Incorporation runs the risk of enduring frequent fluctuations of foreign exchange. 2. The company is also under pressure to collect and remit taxes through the sale of its online merchandise. 3. Intense competition

Strengths

Amazon is currently the worlds largest online retailer after recording revenues of $135,987 million while its closest competitor, eBay, recorded $8979 million sales in 2016 (SEC, 2016). The company has an operating model which enables it to quickly turn its inventory, thereby helping it to generate more revenues. The format also enables the company to improve its customer satisfaction levels. The companys strong presence in e-Books provides it with a competitive advantage over its peer group while also enhancing the revenues.

Weaknesses

The companys patent infringement issues have continued to the confidence of shareholders. Amazon.com Incorporation is under investigation over a series of infringement of patents. These have continued to affect the companys brand image (MarketLine, 2017). The company has also experienced frequent outages in its web hosting ad cloud computing services. These frequent outages can lead to significant loss of confidence among the business customers.

Opportunities