SuperTutor
$15/per page/Negotiable
Running Head: AMAZON CASE STUDY Amazon Case Study
Alkarrar Ebraheem
Webster University
June 2017 1 AMAZON CASE STUDY 2
Executive Summary This case study is review and analysis Amazon Company. This research
exhibit the company's historical and current information, governance structure,
external environment, and internal environment to determine an overall group
status. Moreover, understand where the company now and where to want to be in
the future. “Amazon company started in 1995 as a website that only sold books;
founder Jeff Bezos had a vision for company's explosive growth and e-commerce
domination" (D’Onfro, 2014). Amazon Company brings up the new style of
production and marketing their industry. Amazon becomes a big technology
company in the world, and it has been competing with other technology company
such as Apple, Samsung, and Dell. In this case study, it would analysis the strategic
factors that Amazon has it and how they can continue to be competitive and increase
their customers. Amazon Corporation would need to innovate and bring new ideas
to meet customer’s wants. While reviewing what Amazon had accomplished goals,
this case study would provide the recommendation that could support Amazon firm
to accomplish more goals and determine all resources that help to win marketplace. AMAZON CASE STUDY 3 Historical And Current Information
Jeff Bezos founded Amazon Company in 1995 as a bookstore online (Ritalaa,
Golnam & Wegmann, 2014). Initially, when Amazon started, their value was focused
on customer’s satisfaction, which means provide them a wide selection, excellent
customers service, and fast shipping (Ritalaa, Golnam & Wegmann, 2014). Amazon
annual report, they focus on primary values that help a company to meet their goals.
"We are guided by four principles, customers obsession rather than competitor
focus, passion for invention, commitment to operational excellence, and long-term
thinking" (Amazon Inc., 2016). Furthermore, Amazon provides high quality to the
customers. "Serve our original customers sets, consisting of consumer, sellers,
developers, enterprise, and content creators. Also, we provide services, such as
advertising services and co-branded credit card agreements" (Amazon Inc., 2016). Amazon was small when they started, but they were an innovate to bring up new
ideas such as how to buy products, easy pay, see all other customers review, and firm
contact with sellers. All these quality gives value to their stocks. Amazon Company
had started selling their stock in 1997; it is an adverbial to the public when it listed
on the stock market named NASDAQ Global Select (Hoffman, 2015). AMAZON CASE STUDY 4 “Amazon Web Services, which grew out of the company’s own e-commerce
infrastructure needs, has become a $13 billion business that not only powers the likes
of Airbnb and Netflix, but stores your Kindle e-book library and makes it possible for
Alexa to tell you whether or not you’ll need an umbrella today” (Robischon, 2017).
Amazon has tended to use new technologies through buying a product, such as "one
click" shopping is giving Amazon priority to win competitions and increase
customers satisfaction. Amazon Company today seeking to use all new technology
devices in their industry. For example, use new equipment to prepare packages and
use the drone for upcoming years in package delivery service (Ritalaa, Golnam &
Wegmann, 2014). Amazon strived to provide newest and best products to their
customers through the extremely dynamic website, and they can meet each need.
"Further goals, Amazon engaged in permission marketing, eliciting permission to email customers regarding specific product promotion based on recent purchases on
the assumption that targeted e-mail was more likely to be read than blanket e-mail”
(Pearce & Robinson, 2015). Additionally, over the past three years, Amazon provides
a new e-reader device called Kindle products, which has cut out books price with
millions of books available to download it (Ritalaa, Golnam & Wegmann, 2014). “The
Kindle’s popularity already seems to have stoked competition from other technology
companies, such as bookseller Barnes & Noble, which has teamed up with AMAZON CASE STUDY 5 The Plastic Logic to develop a new reader, and Apple, which is rumored to have a digital
tablet under wraps” (TM, 2017).
Governance Structure
Amazon current Executive Officers and Directors as a follows Jeff Bezos 53 age old the
title of president, chief executive officer, and chairman of the board. He operated this
position since Amazon founded in 1994 and chief executive officer since 1996. The
second head position is for Jeffery Blackburn 46 age old; he is a senior president of
business development division. He has served since 2006. Senior vice president Andrew
Jassy runs web service department since 2006. Brian Olsavsky, he is the vice president
and chief financial officer since 2015. He has a long experience with Amazon; he had a
vice president, finance global consumer business from 2011 to 2015. Moreover, the
numerous of financial leadership is roles across Amazon with global responsibility since
2002. Diego Piacentini is the senior vice president of international consumer business
since 2012, and he has served as senior vice president of global retail from 2007 to 2012.
Shelley Reynolds is a vice president of a global controller and principal accounting officer
since 2007. Jeffery Wilke is the senior vice president of consumer business since 2012
and vice president in North America retail from 2007 to 2012. Davide Zaposky is senior
vice president of general counsel and secretary from 2012 to 2014 and vice president
and associate general counsel for litigation and regulatory matters from 2002 to 2012. AMAZON CASE STUDY 6 The boards of directors for Amazon Company consist of 10 members. First, Jeff
Bezos is the president, chief executive officer and chairman of the board. Second,
Tom Albert is managing director for Madrona Venture group. Third, John Brown is
visiting scholar and advisor to Provost, University of South California. After that,”
William B. Gordon, also known as Bing, is a Partner, General Partner, Chief Product
Officer, and Advisor of Kleiner Perkins Caufield & Byers (KPCB)” (Amazon Inc., 2017).
Moreover, then Jamie Gorelick is a partner at Wilmer Culter Pickering Hale and Dorr LLP
(Amazon Inc., 2017). Further, Judith McGrath is the president of Astronauts Wanted.
Also, Alain Monié is the chief executive officer of Ingram Micro Inc. Additionally;
Jonathan Rubinstein is the chairman and CEO of Palm Inc. and Thomas Ryder who
retired of director of reader digest association. Lastly, Patricia Stonesifer is the
president and chief executive officer of Martha’s table. External Environment
As business grew rapidly, Amazon faced many challenges. The primary challenge
Amazon Company has faced much competing in the marketplace, and that makes
them spend second effort to win a market as an online bookstore, online purchases
products, fast delivery, and technology devices. AMAZON CASE STUDY 7 In 2015 annual report the CEO informed his shareholder, "we have many
competitors in different industries, including retail, e-commerce services, digital
content and electronic devices, and web and infrastructure computing services"
(Amazon Inc., 2015). Their competitors have reliable power than Amazon and have
the greater resource, long experience, more clients, and long familiar with what
customers need. All elements above would push firms forward and gives them
priority to implement their vision, better performance, aggressive pricing,
marketing their goods, accomplish goals successfully. Large companies tend to be
the alliance with other or/and beat other competition and run both under a
different name. For example, AT&T and DIRECTV and create the company to produce
deferent industry, and would help them to be the strong competitor. Another
example, T-Mobile and Metro PCS became one company, but they still use different
names that also support into Win marketplace. So the technology being one of the
biggest markets in the world, use new technology, improve web search tools,
technology device, and easy to pay and shipping, would increase the competition
and avoid any threats. The Internet was facilitated entry and secure shopping and
reduces products cost, and increase profit.
Amazon strategic has treated some of the competitive risks above. Many
companies have tended to take a step up to work with Amazon or/and contract with
them to increase their profit. Companies like Sony, Apple, and Samsung are
contracted with Amazon to push their products.
AMAZON CASE STUDY 8 Today, Amazon products most adapt to customers wants. The have advanced their
kindle fire to be a new smart e-reader or a big online library. It is easy to use Amazon
smart device by its self. Amazon has released versions of the Kindle to compete with
other companies that produce similar devices.
Amazon can be the strong competitor with other companies by developing
and adhering to a technological market system. They provide a friendly such as the
feature, "when one purchase a kindle fire, they can just log into their Amazon
account, and all details will transfer over to his/her device. By connect it together all
of their platforms, Amazon is ensuring that its customers are always a mere click
away from purchasing a book, or any other products that Amazon sells on its
marketplace website" (Turban, King, Lee, Liang & Turban, 2014).
E-retailers faced a complicated by state and local tax laws. Amazon has
started to collect state tax; they mad a decision to gather taxes in Ohio (Davis, 2015).
In June- first, 2015 the total of state Amazon collecting 25 that cover 77% of
America's population, why they should collect in all state?
"The subject of national sales tax has been an issue in many of states that it operates
in" (Turban, King, Lee, Liang & Turban, 2014). States argue, "the law states that any
company with presence must pay state sales tax" (Turban, King, Lee, Liang & Turba,
2014). Amazon Company has challenges in law directly, and they should pay taxes
to 52 states it ships their products. They faced legal challenges by state, city, and
counter.
AMAZON CASE STUDY 9 Finally, they made and agreements with countries to solve taxes issue. The final
solution is different state to other, some of them provide tax concessions to Amazon
exchange to provide job to people are lives in the state (Ritalaa, Golnam, &
Wegmann, 2014). In the end, Amazon is still working to solve all tax issues with the
state. "Amazon tends to continue to attempt to make deals with a state government
to benefit everyone involved" (Ritalaa, Golnam & Wegmann, 2014). Internal Environment
Amazon has done the mutation in package delivery, "same day delivery promises to
be the next big step in e-commerce" (Murray, 2015). Amazon has created a new
smart technology way, as delivery by drones. "Once consumers can order something
by the specified time during the day and receive it that same day online purchasing
will significantly alter" Murray, 2015). Amazon was always seeking to customers
satisfaction, so they save a client's time by using smart devices. They tend into invest
in same day delivery called "Amazon Prime" and would help them to meet customers
want and be a front of a market. "There are potential to significantly increase their
business into new sales and timeframe to get it" (Murray, 2015).
As the internal environment, Amazon Company provides a 250,000 full and part
time jobs (Amazon Inc., 2015). Furthermore, they provide numbers of seasonal jobs
start from September to February. Additionally, they provide a sub-contract job as
delivery.
AMAZON CASE STUDY 10 They contact with other companies to deliver their products and customers
purchase in 2-to 3-business day (Amazon Inc., 2015). "Amazon workers, works
councils, statutory employees representation obligation and union agreement in
certain countries outside the United States" (Amazon Inc., 205). Amazon Company
focused on hired talent people or/and buy external experiments, such as computer
scientist, software engineers, and other technical staff (Amazon Inc., 2015). Amazon
Company has some risks affect the internal environment. Amazon faced challenges
such as local economic, general political, and government regulation. In another
side, Amazon has a lower level of the credit card that's lead to make payment
difficulties, and there is the additional risk like employee culture and language all
effect on their performance. Analysis of Strategic Factors
Amazon company have strong strategic in the technological world. Amazon
Company joins a new culture of business actively; by using a new system produce
their goods. Amazon became same large technology companies, such as Google,
Apple, and Microsoft and it came power by systematically and protect their industry
(Rao, 2011).
The next important strategy provides low-cost products with high quality
and high rate of customer service. AMAZON CASE STUDY 11 For example, E-reader or/and Kindle device its offer a consumer a million online
books and same features of I-Pad or other smart devices with low cost. Most
Software increases the profit to the companies, so Amazon sell Kindle device below
the cost to help people buy it, but the profit would be when they charge their
consumer In buy books (Rao, 2011).
The other strategic of Amazon Company is leadership influence on the new
market. One other Amazon success is to meet customer demand, they release an
Amazon movie, which means release quick and produce significant numbers of
films. Further, they release some new original TV show that is unique to their
stream. Lastly, the have an Amazon Prime members, that would be the main benefit
and strategic.
Amazon to count in their successful, they have to improve their strategic plan,
company culture and environment condition to move in any industry they want.
They still need support innovation and help other to bring new ideas to keep the
company successful. To face all challenges, they need to explorer to threats and
opportunities coming from the external environment. Recommendation Of Strategic Initiatives
Amazon company to be successful, they have to provide more training to
their employees or/and new hires to build the smart worker. The employer must
support their employees to be part OD long-term success.
AMAZON CASE STUDY 12 The best strategic management is that is focused on employees education and
training (Pearce & Robinson, 2015). Amazon needs to improve innovation concept
and support all middle management and prepare a new leadership to future.
Amazon needs to develop their internal environment condition. They must keep
employees talented by seeking for employee’s satisfaction and feel valued.
"Productivity linked to employee loyalty to the appreciation of manager" (Pearce &
Robinson, 2015).
Amazon Company needs to develop their security system. Recent five years,
the biggest problem faced large businesses that are hacker attack. For Amazon
company, this issue could affect on customers profile or/and their payment
methods. As Amazon general strategic to be the partner with large enterprises to
operate their business, they can join with some of the big companies that are
responsible for providing a reliable security system and protect all customers’
information. "BlackRidge provides an identity-based network and cyber security
solution that authenticates identity of applies policy on the first packet of network
sessions. Security system provides the real time of protection that cloaks and
protects servers, segments network, and provides identity attribution" (Business
Wire, 2016). AMAZON CASE STAUDY 13 Reference
A. (2017). Annual Report. Retrieved June 23, 2017.
A. (2016). Annual Report. Retrieved June 23, 2017.
A. (2015). Annual Report. Retrieved June 23, 2017.
B. (2016, September 19). SINET Announces 16 Most Innovative Cyber security
Technologies of 2016. Retrieved June 23, 2017.
D'Onfro, J. (2014, May 10). 14 Quirky Things You Didn't Know About Amazon.
Retrieved June 23, 2017.
Ritala, P., Golnam, A., & Wegmann, A. (2014). Industrial Marketing Management.
Retrieved June 23, 2017.
Hoffman, A. N. (2015). Amazon.com, Inc: Retailimng Giant to High-Tech Player. In
J. A. Pearce II, & R. B. Robinson, Strategic Management Planning for Domestic & Global
Competition . New York: McGraw-Hill Education.
Robischon, N. (2017, February 13). Why Amazon is The World's Most Innovation
Company of 2017. Retrieved June 23, 2017.
Pearce II, J. A., & Robinson, R. (2015). Strategic Management Planning For
Domestic & Global Competition (14th ed.). New York, NY: McGraw-Hill Education.
T. (2017). Will the Kindle Change Education? Retrieved June 23, 2017.
M. (2015). The Flying Sidekick Traveling Salesman Problem: Optimization of
Drone-assisted Parcel Delivery. Retrieved http://www.chasemurray.com/research/180-2/ June 23, 2017, from Turban, E., King, D., Lee, J. K., Liang, T.-P., & Turban, D. C. (2014). E-Commerce:
Regulatory, Ethical, and Social Environments. New York. Davis, C. (2015, June 10). Sales-Tax-Free Purchases on Amazon Are a Thing of the
Past for Most. Retrieved June 23, 2017. Rao, V. (2011, December 14). Why Amazon Is The Best Strategic Player In Tech.
Retrieved June 23, 2017.
Attachments: