Amazon Case Study

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Q1.) Explain’s strategy during the period 2007 to early 2010. Amazon’s strategy from 2007 to 2010 can be itemized as follows: 1. Diversification: the company initially started as an online retail bookstore and later diversified their portfolio to sell jewellery, digital music, cloud computing etc. 2. Focus on consumer sentiment in the face of global recession. 3. Continued investment in innovation and technology: to build and maintain Amazon’s sustainable competitive advantage in the market. 4. Segmentation & Prioritisation: Trying to shift from being merely customer-centric to considering which groups of customers should take priority. 5. Forecasting: they wanted to determine if Amazon’s business model would still be the right and profit making business model five years down the line. 6. Strategy behind Product Choice: Jeff Bezos applied strategy even in the choice of the product he wanted to retail. He believed in the global appeal of this product (everyone read and liked books), also books had a low price point and the global books sales market was already estimated to be US$ 80 Billion at the time. 7. Strategy to club books with the World Wide Web: having decided on books as their preferred product of sale, Jeff Bezos relied on the power of the internet to provide a much larger range (selection) of titles to their users as well as a better presentation and online organization & arrangement of books. 8. Location: Jeff Bezos, the founder, wanted to locate the business in Seattle as it was close to Ingram Books, the largest US Book Distrubutor. This location also had access to a large supply of computer software. 9. Brand Naming: the naming of the company as Amazon also had strategic implications behind it. Jeff Bezos believed that the power of the internet created continual global communication and would

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