Amazon is a great, leading edge company. The key of the amazon successful is keeping innovation and creating long-term investment. This report presents the analysis of amazon internal environment with the use of competency framework, porter’s value chain and VRIO analysis. After the internal analysis it will be possible to point the amazon strategic capability.
The features of amazon’s strategy
* Different groups of customers: Amazon served three groups of customers: consumer customer, seller customers and developer customer.
* Selection: Amazon offers customers the widest selection of production. The important pillar of amazon improve the customer experience is continuous increasing the richness of goods. Bezos, the founder of Amazon, told his shareholders that they should continue to focus relentlessly on their customers. With the Amazon product selection enriched greatly, Amazon attracts more customers.
* Price: Amazon was committed to price leadership and consistently. Since 2001, Bezos make low price for the pillars of improving customer experience. Amazon also makes a lot of discount everyday. Nowadays, people like to compare the goods between stores and online, they will buy the products on amazon for the low price.
* Convenience: Bezos said that they do not make money from selling; they help people make better purchasing decision to make money. Amazon dedicated many resources to know what the customer wanted by offering customer review and feedback forms on all of its products (refer case study). Bezos invested a lot of money to establish operation center, even the operation scale is far beyond Amazon’s actual customer demand in that period. This enhances the customer experience greatly.
These features of Amazon’ strategy were supported by Amazon’s innovation and investment. On the other hand, these features are also keeping Amazon attracting customers to develop it.
The Amazon strategy capabilities