Amazon strategic management

Amazon strategic management

1. Strategic management

2. PRESENTED BY RINU EMMANUEL PRAMUDHA N M GRINSHA DEVASSY ANSON P JOHNSON

3. Amazon.com : A digital shop around the corner

4. But a digital colossus…

5. All these companies belong to Amazon

6. Amazon is the world’s largest online retailer and is indeed a pioneer in the online retailing space. It started as an online bookstore, its success in its venture spurred it to diversify into selling anything that can be sold online. Further, amazon has also expanded globally and now operates around the world through a combination of localized portals and globalized delivery and logistics platforms.

7. Corporate strategy

8. As the largest online retailer in the world, Amazon proves to be highly competitive, even against giants like Walmart. Amazon’s intensive growth strategies are responsible for business growth and expansion. The company’s provision of its e-commerce services outside the united states shows business plans for international growth. Amazon.com succeeds in the global e-commerce market.

9. The way in which Amazon has leveraged technology as a source of competitive advantage and reaped the benefits of the economies of scale. In addition to leveraging the synergies between its internal resources, external drivers has spawned many rivals who aim to imitate and better its business model.

10. Evaluation of Current Strategy Amazon’s generic corporate strategy can be described as concentric diversification. This strategy is based on leveraging technological capabilities for business success and following a cost leadership strategy. A imed at offering the maximum value for its customers at the lowest price in addition to wrapping its business around the customers where they find Amazon to be the go-to portal for their online shopping needs .

11. Indeed, this strategy has paid off well as can be seen from the fact that it is the world’s largest online retailer and has consistently been the leader in the market segments in which it operates .

12.   Amazon’s strategy is driven by its sources of competitive advantage

13. Amazon uses Big Data Analytics as a tool to map consumer behavior. Big Data has been embraced to such an extent by the company that it is now in a position to market this as another service offering.

14. Anyone who has shopped on Amazon encounters a list of recommended products that are picked according to the browsing history and the mapping of their purchases with that of likely purchases in the future. This has meant that Amazon can sense and intuit what consumers want and tailor its strategies accordingly. Amazon’s current strategy is also built around the convenience aspect wherein customers need not go to a physical bookstore or even wait for their purchases to arrive after some time. Amazon has introduced same day delivery in many countries and is even toying with the idea of using Drones for near instantaneous delivery.

15. Business strategy

16. PROFITABILITY STRATEGY

17. 1. Set price minimums and maximums 2. Avoid the race to the bottom, but don’t be scared to compete 3. Price based on condition 4. Make data your best friend 5. Win the buy box

18. The generic strategy followed by amazon explained by the Ansoff matrix

19. Amazon is placed in the Overall Cost Leadership quadrant and its relentless focus on costs is the key to understanding its overall strategy. The specific measures taken by Amazon in pursuit of this strategy include steep discounts for its regular members through the: Amazon prime program Ensuring timely and even express delivery and at times, Waiving off the shipping charges, Passing on the benefits of avoiding state taxes to the customers.

20. Amazon Business Strategy and Competitive Advantage Amazon business strategy can be described as cost leadership taken to the extreme. Amazon business strategy is guided by four principles

21. Regularly entering into new niches and segments . Started only as online shop for selling physical books in 1997, today Amazon sells anything that can be sold online in the global scale. Sophisticated global logistics represents one of the solid bases of Amazon competitive advantage and the company has used this advantage extensively to engage in successful business diversification. Recently, the company launched Amazon Home Services, a simple way to buy and schedule local professional services as a continuation of its diversification strategy.

22. Strengthening Amazon ecosystem Amazon ecosystem consists of merchants, writers, reviewers, publishers, apps developers, and the information market of commentators, analysts, journalists and feature writers who get the word out about opportunity on the Amazon platform. Amazon senior leadership engages in deriving maximum benefit from each component of company ecosystem, as well as, strengthening relationship between the components.

23. Focusing on Amazon leadership values . Gaining maximum contribution from human resources is another source of amazon competitive advantage. Working for amazon is highly challenging experience and employees are expected to take on heavy workload, often sacrificing work-life balance. Amazon leadership values consisting of 14 principles, such as customer obsession, insisting on the highest standard and diving deep, play an instrumental role in terms of increasing the input from human resources

24. 10 Changes that Impacted Amazon Advertisers in 2017

25. 1. Subscribe with Amazon Goes Live In April, third-party sellers got an extra perk: the Subscribe with Amazon platform. A different beast from the already existing Subscribe ‘n’ Save program, Subscribe with Amazon is designed for digital products only — not physical, deliverable ones. Sellers who participate in the program get a dedicated detail page about their services, can offer different tiers of pricing, are allowed to create Prime-exclusive deals and may even be featured on the main Amazon storefront.

26. 2. Amazon Launches Influencer Program Influencer marketing has been a hot topic in the last few years, especially as platforms like Instagram and Snapchat has blown up in popularity. Amazon took steps in April to leverage this new niche by adding its very own Influencer Program, a platform designed specifically for social media influencers who tout products and shoppable content. Influencers get their own Amazon URL and earn fees for customers/sales they drive to the site

27. 3. Amazon Stores Open their Doors In early Amazon created “Amazon Stores,” self-service storefronts that sellers can use to show off their brands, products and other details. Offering multiple pages of content, Amazon Stores let sellers better brand their buyers’ shopping experience across both mobile and desktop versions. They can even add in rich media, images, video and more, and it’s all available through the Amazon Marketing Services tab of the admin area.

28. 4. Private Label Brands Take Off July saw Amazon’s list of private label brands skyrocket, with more than two dozen Amazon-owned food, clothing, electronics and house ware names hitting the scene. The site’s line of batteries saw a 93-percent jump in sales over the year, and its baby wipes grew 266 percent – taking the No. 3 spot on the market behind Pampers and Huggies . It’s likely this was only the beginning, though, as  Quartz found additional brand names  registered by Amazon that have yet to release products.

29. 5. Prime Day Sales Jump 60% Prime Day came and went this summer, with sales growing 60 percent over 2016. Its biggest item of the day was the Amazon Echo Dot, which was discounted from $50 down to $35. Other hot commodities on Prime Day were a 55-inch TV, the InstantPot , DNA testing kits, Sony PlayStation 4s, the Nintendo Switch and Game of Thrones DVDs.

30. 6. New Refund Policy Goes into Effect Amazon took a big step toward ousting third-party sellers altogether when it rolled out its new refund policy in August. The new rule says Amazon will pre-authorize returns on any products shipped from a seller’s home, garage or warehouse starting Oct. 2. For third-party sellers, it means that refunds on their products will be issued automatically – with no communication necessary from the customer whatsoever. Though good for consumers, it struck fear in the hearts of many Amazon sellers.

31. 7. EBC Video Beta Opens The Amazon Enhanced Brand Content tool was already a game-changer for many sellers, but in August, the retail giant kicked it up a notch, adding video capabilities to the tool as well. Launched in beta form late this summer, the EBC video features let sellers post videos directly to their product detail page, showing the item in use or in better detail.

32. 8. Headline Search Ads Become Available for 3Ps In August, Amazon expanded headline ads to third-party sellers – not just Vendors, as had been the case previously. A great way to boost awareness and drive traffic to product pages, headline search ads are keyword-driven, top-of-the-funnel marketing tools that live above Amazon’s search results.

33. 9. Vendors Get Premium A++ Content Though it hasn’t been officially rolled out just yet, Amazon did start testing some pretty cool features on its A++ Content program, which is offered to Vendors through the Amazon Marketing Services area. It seems A+ Content, which lets Vendors enhance their product detail pages, will now expand into A++ Content, offering video loops, hover-and-click interactive widgets, slider galleries, testimonials and other interactive elements.

34. 10. Amazon Pages Comes to an End In October, Amazon announced it was discontinuing the “Brand Pages” previously offered through its Marketing Services tool. The feature used to let sellers create a customized landing page, but with Amazon Stores in the works, it’s likely this function was no longer necessary.

35. Thank you