STRATEGIC ANALYSIS PLANNING OF AMAZON.COM

Strategic Analysis Planning of Amazon.com





Executive Summary

'This paper provides a strategic analysis of Amazon.com'. Amazon is one of the leading online retailers and serves its customers to the best of its ability. This paper focuses upon the current status of Amazon.com, the strategies that are being used by the organization at present and the three new strategies which Amazon.com should consider looking forward. The strategies mentioned could help them to expand and mainly concentrate on upon the retention of customers which are the major source of revenue i.e. the higher the number of customer clicks, the higher the amount of revenue/profit earned by the company. The Company was the first to provide its customers with reminders and tracking updates through e-mail, rather than requiring them to log onto the retailer's system to obtain such information. Amazon continues to develop IT systems relating to support Kindle e-book reader. Especially the online Kindle Store using the Whisper net wireless distribution network.

Strategic Planning of Amazon.com

Introduction

A strategy is an approach or plan. Thus strategic planning is the overall planning for the proper management of a process. The process which answers the important questions, as where are we now? Where should we reach? , and how to get there?. Strategic planning allows the company to set out the daily activities of its business or project. It provides a comprehensive overview about what you do and where you go. Strategic Planning brings clarity to what you want to do and how you will get there as compared to a plan of action that only affects daily activities (Mason & William, 2009, pp 56-78).

It is a fact that for every successful business, it has a plan and they know there correct direction where they are heading in the future. Planning actually allows the organization for anticipating the changes and prepare for it. It helps and guides the company to deal with dramatic changes in its environment (Applegate, 2002, 801-194).

About The Company

Amazon.com, Inc. is a company of e-commerce with U.S. headquarters in Seattle, in the state of Washington. Amazon is regarded as one of the leading companies for selling goods through the Internet and it is the major symbol for the Internet bubble at the end of the nineties. Moreover, soon after the bubble burst, Amazon had to face scepticism towards the business model however the year 2003 was the year that it reached for the first time a gain on an annual basis. Amazon also owns A9.com, Internet Movie Database (IMDb) and Alexa Internet.

Amazon was founded under the name of Cadabra.com in 1994 by Jeff Bezos and it was launched in the year 1995. In the beginning Amazon functioned as an online library, it quickly widened its range of products and started to sell CD music, video games apparel, food, toys, DVD, electronics, apparel and furniture and many other products. Later, Amazon looked for other strategies by entering the United Kingdom, Austria, Germany, China, Japan, Italy and ...