AMAZON STRATEGIC PLAN

Student Name: …………………..

Online business, cloud registration, enhanced streaming, and artificial intelligence is some of

Amazon's key areas of focus. Founded in 1994 by Jeff Bezos, Amazon has now become a well-

known firm for its wide selection of goods and competitive pricing. Currently, the company is

putting efforts to get a competitive edge by examining the new ideas to explore new business

areas (Tigre, 2019). Amazon's stock price has increased by over 70% from its March 23rd, 2020

IPO date. Amazon accounts for 160.47 billion, of the estimated 3.5 trillion dollar value of the top

five technology companies.

Amazon's general corporate strategy may be summarized as the creation of new markets. This

strategy focuses on utilizing technological capabilities for success in business and trying to

follow a competitive pricing strategy to provide the maximum value for customers at the lowest

price, in furthermore to wrapping its business around the customers, who find Amazon being the

portal for their online buying needs. Amazon's strategy is motivated by its competitive

advantages, which are focused on technology. Amazon employs Big Data Analytics to map

consumer behavior. Indeed, the corporation has adopted Big Data to the point where it can now

promote it as another service product. The underlying business strategy of Amazon would be to

operate with razor-thin profit margins, enormous economies of scale, and an exceptionally strong

focus on customer pleasure.

Pestle Analysis of Amazon

analysis emphasizes state activities and their impact on firms. In the context of Amazon, the

following important environmental forces are essential to the growth of the e-commerce sector:

· Political environment in industrialized countries, particularly in the United States

and Europe (opportunity)

· Government aid for e-commerce (opportunity & threat)

· Increased state attempts to improve cyber security (opportunity)

Economic Factors:

The countries in which Amazon operates its digital and offline activities have an impact on its

performance. This section takes into account the impact of economic changes and trends. In the

context of Amazon Incorporation, the following economic external components are critical:

• Fiscal prosperity in established economies, notably in the United States and Europe

(opportunity)

• Growing disposable income in developing nations (opportunity)

• China's probable financial downfall (threat)

Social Factors:

Amazon is influenced by social variables. This aspect of the PESTEL investigation technique

recognizes the impact that sociocultural shifts or trends have on an organization's ability to

position itself as a primary web-based retailer and provider of data innovation labor and goods
(Carneiro et al., 2020). Taking into mind such trends in the climate on a larger or more local

scale, Amazon is confronted with the associated sociocultural external factors:

• Expanding abundance uniqueness (danger)

• Increasing levels of commercialization in developing countries (Periera, 2020)

(opportunity)

• Increasing preferences for making purchases over the internet (opportunity)

Technological Factors

Given Amazon's reliance on technology, technical advancement has a direct influence on the

corporation. This section of the research looks at the consequences of technology and associated

advances (Aderounmu, 2019). The following are the key technical internal forces:

• The development of the technology (threat & opportunity)

• Enhancing the productivity of IT resources (opportunity)

• Cybercrime is getting more widespread (threat)

Legal Factors

Amazon's activities must follow legal guidelines. The implications of the legislation are

determined by this component of the PESTEL analysis (Greenspan, 2019). In Amazon's instance,

the following broad external components are critical:

 Higher product restrictions (opportunity)

 Environmental constraints imposed on businesses throughout time (opportunity)

Ecological Factors

Even though Amazon is largely an online store, its actions are impacted by its local environment.

This part of the research shows how the firm's environment interacts with environmental

variables (Arias, 2020). Amazon focuses its strategic decisions on the natural environmental

elements listed below:

• Environmental initiatives are becoming more popular (possibility)

• The relevance of corporate sustainability is increasing (opportunity)

• Low-carbon lifestyles are becoming increasingly popular (opportunity)

VMOSA of Amazon

The purpose and vision statements that Amazon has articulated in the past have, on the whole,

been quite effective. Amazon constantly pushes itself to guarantee that these assumptions are

met, which has led to the great growth that the firm has made. The vision of Amazon is to

become the most reliable company for users where anybody can find anything. They strive to

provide customers with the most ideal that an individual could expect to find and the most

extreme convenience, which is meant to be a continuing statement of vision. The firm’s main aim

is the satisfaction of its customers. Providing the customers with the cheapest prices &

competitive advantage, maximum convenience and the best things to select is the mission

statement of Amazon. To develop strategic plans which completely align with the vision and
mission statement of Amazon it is necessary to understand what these statements meant.

Amazon’s aim to become a reliable firm for the customers highlights its plan to reach the

maximum potential customers, who are searching for compatible pods at the lowest prices.

Amazon can use this “low pricing” need of customers as a key selling point for the company

which will make its e-commerce website more attractive. For this purpose, amazon can reduce its

operational costs (Aggarwal, 2019).

Deployment Process and Resource Strategy

Canary delivery is a kind of moving-sending approach in which the new programming version is

organized on a small number of servers from the start. Using this approach, you can observe how

the product works in action on a few servers while minimizing the impact of breaking changes.

Backlog of products is transferred if there are more mistakes from canary companies than usual.

However, the number of servers that have been upgraded to use the new adaptation is growing

steadily (Oliveira-da-Costa et al., 2020). AWS Elastic Beanstalk follows the moving arrangement

architecture with two options for transmitting and moves on indefinitely with more clumps.

Before removing servers from management, the program may grow with these options in place,

ensuring complete functionality for the corporation as a whole. One At a Time and Half at a Time

designs are used by AWS Code Deploy to produce this example.

Strategic option for Amazon

Expanding and promoting Amazon's proprietary brands to their dedicated

consumer base is one of the best strategic options for Amazon. Amazon's strategic investment in

selling its own branded items at a modest cost will increase the company's market capitalization
through its accelerator program (Carneiro et al., 2020). Amazon has access to a wide range of

businesses that they may purchase and rebrand under their brand. There is a direct correlation

between the number of private brands Amazon can offer on its website and its ability to outrank

other items (Adelaide, 2022).

The impacts for the company would be to build an unshakeable customer base for that sector and

to create a distinct product. The product must have a distinguishing feature that none of the other

contestants have. Creating such an enticing item would be easy for Amazon either by supplying

the product at a cheap cost or by adding more capacity to a standard item. Amazon has a

remarkable group of loyal customers. Collaborations with existing products in need of a boost in

sales and marketing might also be a possibility. This might be beneficial for customers, retailers,

and Amazon itself.

Critical Success Factors

The major critical success factors essential to developing ways for the success of Amazon’s

strategic option include engagement as well as the involvement of the customers in the firm

either directly or indirectly. Since Amazon is a customer-driven firm so their opinion matters the

most and the administration must consider them. Another strategic option for Amazon is its

collaboration with retailers to develop new products. For this purpose project management

expertise, development tools & infrastructure, and executive support are critical success factors

for this strategic option for Amazon. Because collaborating with others and launching own

products is somewhat difficult, that is why a close collaboration among the workforce of the firm

is necessary.
Monitoring and control system for implementation of the strategic plan

After creating our strategic plan we will monitor it by communicating the main points of our plan

so that the workforce can respond according to them. Our controlling strategy is based on

planning the implementation of the plan, analyzing as well as monitoring its performance and

controlling the changes by altering the execution plans. In this regard, we have created

milestones of strategy and highlighted key performance indicators to organize our strategic plan.

We will make our control system effective by developing different dashboards and progress

reports for better monitoring of the plan (Christine, 2019). To monitor Amazon's strategic plan,

its implementation is not enough but it is also necessary to undertake some changes in the

strategic plan if required. The case of such alteration can either be the poor implementation of the

plan or poor strategy made in the first place. In the monitoring system, we will also carefully

analyze the main causes of the poor performance of the strategy.

Key success indicators for monitoring the implementation of the strategic plan

Our strategic plan for Amazon includes providing convenience for the customers and

collaborating with the retailers. To determine whether the customers are satisfied with the firm's

services we will determine the rate of increased percentage in global markets, the average value

of customers, net promoter score, etc. Some other determining indicators include inventory

turnover, net revenues, and operating cash flow. Key Performance Indicators include to mention

a few, existing supply, projected lost sales (units), average unit sales per week, and sales rank.

Realistic attempts are also made to increase sales in a planned manner. Some of the most

important ones also include the daily revenue, conversion rate, and site traffic of Amazon.
Potential risks during the implementation of the strategic plan

Developing and then implementing a new strategic plan is always difficult for every firm

because it alters the overall infrastructure and the ways a firm uses to run its operations.

Therefore, it is considered a difficult and time taking process. Sometimes. Companies also

improve their existing policies instead of forming new ones. Instead of finding a new item

supplier or relocating to another country for a small number of employees, Amazon's decision to

collaborate or produce a product might have an impact on how the business and its future are

seen. This might lead to disagreements and the omission of otherwise necessary labor.

Furthermore, ecological factors might also be impacted. To store and create new things, new

manufacturing lines must be established (Shaulska, 2021). Whether or whether the substance is

toxic is also a matter of debate. The question of whether the EPA and OSHA are willing to take

on a risk to engage with Amazon to guarantee everything is ok and for the organization's local

region and the rest of the globe is also another risk to consider while implementing the strategic

plan.

Effectiveness of strategic plan

To assess the effectiveness of the strategic plan, it is important to first determine that your

strategic plan must link with the stated organizational objectives. The strategy is considered to be

effective when it delivers the desired resources and it can be only possible when the leader uses

useful resources and employs them in the right place at the right time. The efficiency and

productivity requirements are crucial. For instance, if the plan is to build a whole new

marketplace, they must include a particular target as well as a method to monitor how many

people of the original market purchase your items. For this purpose, it is necessary to get data
from the online stores/ website of amazon to monitor the sale and response rate of the people to

analyze the result of the strategic plan. In this scenario, it is also important to measure the

customer response toward a product. For this purpose, a customer feedback survey can play a

crucial role to track progress. Along with retaining an old customer, it is important to attract a

new customer. To check the strategic plan’s effectiveness, it is essential to know the correct

percentage of newly joined customers.

Pereira, J.C. and Viola, E. (2020) ‘Close to a tipping point? The Amazon and the challenge of

sustainable development under growing climate pressures’, Journal of Latin American Studies,

52(3), pp. 467–494.

Tigre, M.A. (2019) ‘Building a regional adaptation strategy for Amazon countries’, International

Environmental Agreements: Politics, Law and Economics, 19(4), pp. 411–427.

Arias, M.E. et al. (2020) ‘Impacts of climate change and deforestation on hydropower planning

in the Brazilian Amazon’, Nature Sustainability, 3(6), pp. 430–436.

Carneiro, M.S. et al. (2020) ‘Deforestation governance in the Amazon from a Strategic Action

Fields perspective’, Ambiente & Sociedade, 23.

Adelaide, A. a., 2022. Strategic recommendations for Amazon Inc. Journal of Marketing and

Communication, V(1), pp. 1-8.

Aderounmu, A. a. A. A., 2019. PESTLE ANALYSIS AMAZON INC. Journal of Economics,

Management, and Trade, XX(6), pp. 1-7.

Aggarwal, 2019. Study of Amazon Inc. Academy of Management Proceedings, II(1), p. 13302.

Christine, 2017. MASTERING STRATEGY EXECUTION: STRATEGY CONTROL.Journal of

Business Management, X(2), pp. 55-58.

of Business and Management VII(8), pp. 66-67.

Shaulska, L. L. O. N. T. a. S. H., 2021. Performance management at Amazon Inc. Perspectives in

Management, XIX(1), pp. 77-79.