5/18/2019 Amazon Inc.

Company Report - Research-Methodology

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Amazon Inc. Company Report

Published: August 2018

13811 Words

57 Pages

Price: $14.75

DESCRIPTION TABLE OF COMPANIES

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Amazon.com Inc. was founded in 1994 in Washington and Amazon.com website became first active in
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5/18/2019 Amazon Inc. Company Report - Research-Methodology
July 1995 to become the largest online retailer in the world to offer Earth’s Biggest Selection in less
than two decades. The world’s largest online retailer and the 2nd largest e-commerce company after
Alphabet Inc. (Google) with a brand value of USD 70,9 billion, Amazon enjoys a high level of customer
loyalty and more than 50% of customers are repeat buyers.

Employing 560,000 people worldwide and attracting 2 million sellers on its platform, the e-commerce
giant earned USD 37 billion in Q4, 2017 alone, a 42% increase compared to a previous year. Total sales
increased 27% and 31% in 2016 and 2017, compared to the comparable prior year periods (Annual
Report, 2017).

Amazon has declared its adherence to four principles: customer obsession rather than competitor
focus, passion for invention, commitment to operational excellence and long-term thinking. These
principles represent sources of Amazon’s competitive advantage.

Amazon business strategy is a hybrid of cost leadership and business diversification. The online
retailer also benefits from encouraging communication between various elements within its ecosystem
and promotion of its leadership principles consisting of 14 points discussed in this report.

Combination of pragmatist, visionary and autocratic leadership styles are exercised at various levels at
Amazon. The company has a hierarchical organizational structure. Nevertheless, it remains highly
flexible to adapt to frequent changes in the external marketplace. Amazon organizational culture, on
the other hand, are based on the principles of high level of cost-consciousness, constant reinvention
and improvement of organizational culture and customer obsession.

Major weaknesses associated with Amazon include seasonality of the business, low profit margins and
lack of focus on product or service categories. Moreover, a weak competitive position of Amazon’s Fire
Phone and damage to the brand image due to tax avoidance scandal in the UK can be listed as
weaknesses of Amazon.

Amazon.com Inc. Report contains the application of the major analytical strategic frameworks in
business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix
and McKinsey 7S Model on Amazon. Moreover, the report contains analyses of Amazon’s business
strategy, leadership and organizational structure and ecosystem. The report also analysis
marketing strategy, ecosystem and discusses the issues of corporate social responsibility.

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