Amazon Strategic Management

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Introduction Amazon.com is the world's largest on-line retailer. As one of the most recognized brands, the company had several retail websites and served customers in over 200 countries(Stockport: 629). Amazon was founded by Jeffrey P.Bezos in 1994. In 1995, Amazon.com sold its first book, but books were just the beginning. Amazon soon began methodically expanding from one product category to another: CDs, movies, toys, furniture, groceries. Today the company and its partners sell everything from jewelry to golf gear on Amazon.com. (http://topics.nytimes.com). At end of 2006, Amazon.com's CEO Jeff Bezos reviewed the company's performance since its start-up. He noted that increased sales year upon year had been generated. However, the growing profits generated since 2003, after eight years of negative income, has fallen in 2005. This led some investors to question whether Amazon was perhaps chasing unprofitable growth(Stockport: 629). Some one may wonder that whether the companies choice of strategies is applicable or not? What are they going to do in the future? Actually, the development of Amazon.com is a typical example of global dominance through the development and use of technology to offer an increasing array of products and services and continually enhancing customer experience. This paper will mainly focus on identifying the main strategies Amazon has adopted and evaluating these strategies in detail. In order to contrast and compare the main strategies in different time clearly, the whole paper was divided into two sections from 2004 to 2006, and 2006 to the present. II. Strategic Management 2.1 Definition of Strategic Management In 2005, Dess defined the concept of strategic management as a consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. He pointed out that

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