Documente Academic
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leadership
Diversified range and category of products DRM free MP3 and media
Acquisition / Alliances
Kindle, cloud services, web services and currency converter Product portfolio
Technology
Digital contents
QUESTION 1 CONTD.
QUESTION 2 CONTD.
Valuable Upgradation of existing technology and continuous innovation Rare Brand name and virtual salesman concept Inimitable Customer base and services Non-substitutable Personnel and strategic alliances
QUESTION 2 CONTD.
Strategic Capability
Resources
Good turnover and good management of working capital Strategically located distribution centres, technology warehouses Product development, databases, internal softwares and public websites Brand, customer loyalty and reputation with suppliers Specific skills, commitment, key personnel Financial
Competencies
Managing cash flow, debtors and creditors Storage and utilisation of information. Logistics Leverage technology to make products accessible to customers and manage operations Long term strategic relationship, assistance in maintaining working capital Utilisation of the personnel and pro-active approach
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Physical
Technological
Reputation
Human
QUESTION 3 CONTD.
Strengths Brand name Online global presence Large revenues Large customer base and customer confidence Weakness Excessive investment in diversification lead to reduced net profit margin Unhappy shareholders due to lack of dividends Focus should be on consolidation of the current product range and sub brands rather than further diversification
QUESTION 4 CONTD.
Capabilities C1. Logistics C2. Procurement C3. Operations C4. Marketing / Sales C5. Services C6. HR C7. Technology development C8. Firm infrastructure Importance 9 8 9 8 5 6 6 8 Amazons relative strength 8 8 6 5 7 7 8 7
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QUESTION 4 CONTD.
Key Strengths
R2 C6 C7 C1 C2 R5 R4 R2
Superfluous Strengths
Relative strength
C5 C7
R1
C8 C3 R3 C4
Zone of Irrelevance
Key Weaknesses
Strategic importance
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QUESTION 4 CONTD.
Strategy going forward Consolidate the current business line
Amazon needs to exploit their current strengths and use them to overcome their weaknesses
With the current economic downturn going on, investment needs to be curtailed as the customers are not spending as much as they did earlier
Improve efficiency of the business and thereby increasing the net income
Amazon has a very low net profit margin in comparison to its competitors and they need to increase it to be attractive to the shareholders The amazon website is does not highlight its sub-brands. They should create a co-branding and/or cross branding strategy to increase sales in the current economic downturn
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