Business Strategy Essay

Words: 5881
Pages: 24

Managing Strategy 1
Amazon
STRATEGIC ANALYSIS
OF
AMAZON
Submitted for:
MBA
IN
MS
(MANAGING STRATEGY)
TUTOR:
PAUL ANDERSON
SUBMITTED BY:
C0411672
Managing Strategy 2
Amazon
CONTENTS
Title..................................................................01
Contents....................................................... 02
Introduction.................................................03
Section 1
Current strategic position......................04
Macro environment.................................... 04
Micro environment......................................07
Strategic Capabilities................................10
Section 2
Current and Future strategy..................13
Bowman’s strategy
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Economic factors:
Economic factors have significant influence based on how an organisation manages its business and takes strategic decisions. E.g.: inflation, change in exchange rate invariably affects supply, imports and exports, per capita income has considerable influence on strategic decision making. (Kotler et al, 2010)
Recession affected most of developed countries such as US, UK, Canada and European countries. However recession may not have huge impact on buying habits of customers, because Amazon sells all its products and services for cheaper price than others as it is online retailer and it doesn’t have to pay for overheads and labour associated with physical store, this type of approach helps Amazon to position themselves among competitors in times of recession (Askville. Amazon, 2012)
Social factors:
Social factors mean customers opinions and attitude which affects demand for organisation’s products and services and also it depends on how company manages its operations. (Turner, 2000)
Amazon sells all types of branded quality products cheaper than others and in addition it also provides huge discount through their discount deals. E.g. Black Friday discount deals etc. But recently Amazon started collecting sales tax on its sales, it may have adverse effect on its sales, but it in recent survey it is found that in Texas, sales reduced by 4% and in survey among 2600 people, it is found that 33% of customers wouldn’t