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Assignment 5: Company – Strategic decision...

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1 Running head: Analysis of Amazon company

Assignment 5: Company – Strategic decision Broward College

2 Analysis of Amazon Company

Table of contents Part a- construct a strengths-weaknesses-opportunities-threats (swot) matrix................................3 Part b- construct a boston consulting group (bcg) matrix................................................................6 Part c- construct an internal-external (ie) matrix.............................................................................7 References........................................................................................................................................8 Appendix a.......................................................................................................................................9 Appendix b.....................................................................................................................................11 Appendix c.....................................................................................................................................12

3 Running head: Analysis of Amazon company

Part A- Construct a Strengths-Weaknesses-Opportunities-Threats (SWOT) matrix. This SWOT analysis reveals that Amazon’s procedures can resume in developing, formed on the opportunities in the industry, as well as the organization’s power (see appendix A). For instance, the consort can evolve thorough growth into brand new e-commerce markets, particularly in inflated evolving economies. On the other hand, the pros and cons recognized in this SWOT analysis needs Amazon to contemplate editing some of its strategies. To speak upon the exterior and inner elements in this SWOT analysis, it’s suggested that Amazon continue variating its company to fortify itself in opposition to industry particular risks. An additional suggestion is to create new partnerships to expand your market reach and strengthen Amazon’s worldwide procedures in opposition to its rivals and associated strategic obstacles (Hugo,2008). This particular SWOT analysis of Amazon highlights the need to make sure a sturdy brand image, together with other strengths suited to the online market. The organization needs to keep expanding its strengths, taking into account the swift evolution of technology. The business model of Amazon is known to be easy to reproduce. For instance, other organizations can setup e-commerce websites that sell any product. In the SWOT analysis structure, this inner element is considered a weakness that creates opportunities for other organizations to inflict greater rivalry against the e-commerce business. Competition is obviously one of the biggest threats for Amazon. Some of the most important competitor are eBay, Apple, Google and more. For Amazon, this competition represents one of their biggest strategic challenges and sometimes it appears to be hard to compete with them (Hugo,2008).

4 Analysis of Amazon Company In conclusion, SWOT analysis sheds light in the present position of Amazon. A couple of needed enhancements are required to be completed to issue the lacking and improve its marketplace.

Part B- Construct a Boston Consulting Group (BCG) Matrix

The BCG Matrix Is defined as a planning device that utilized visual representations of an organization’s goods and services in an attempt to assist the organization determine what it should hold, sell or even invest. It schemes an organization’s contributions using a four-square matrix with the y axis showing the amount of market progression and the x axis which shows market share (see Appendix B). The first item in the BCG matrix for Amazon is Cash Cows. There are a few product groups that contribute to a good amount of revenue for a company structure to control its procedures of diverse company units. These produced are classified as a cash cow and the workers task is to take hold of these products and use their inflated market share for producing inflated revenues. Over the years Amazon has been getting a good amount of money from sales such as their Prime subscription as well as their e-books (Janice,2016). The next category is Star which has products like Amazon Prime Air which is a very important component in the star quadrant. As the term reflects, these goods are surfacing as the main revenue source for a company. They don’t provide the same monetary return as cash cows, but the future expansion of these companies is hopeful this way it is motivating the management to pursue their investment. Although these products need an inflated investment, they’re in an expanding stage which indicates that these company units are likely to turn into cash cows once the industry has achieved full growth.

5 Running head: Analysis of Amazon company Furthermore, the next quadrant is Question Marks. Amazon Fresh has so much potential to expand into a very profitable company, on the other hand the restricted market share ensures that its improbable to utilize these company units as a main revenue source (Miller,2011). The industry remains in an expansion stage, which reveals that questions could arise if the company is able to push in the right direction for these products. The last category in the Matrix is Dogs which includes Amazon Studios, auctions, cloud, MP3, which aren’t producing inflated numbers and don’t have the ability to establish a significant market share (Miller,2011).

Part C- Construct an Internal-External (IE) Matrix

The IE matrix is utilized to examine the working state and strategic placement of a company (see Appendix C). It’s contingent on an examination of inner and exterior company elements in which are merged into a model. It’s an extension of the EFE matrix and matrix models: The E matrix places a company into a nine-cell matrix which is contingent on the tow basis. Examination of IE Matrix informs us that Amazon should keep and support its place and should chase strategies centered on inflating market probing and product manufacturing (Broedling, 1975).

6 Analysis of Amazon Company

References Hugo, F (2008). Amazon Matrix Analysis. Janice, H. (2016). Annual Report Amazon. Miller, C. C & Bosman, J. (2011, May 19). E-Books Outsell Print Books at Amazon. The New York Times. Broedling, L. A. (1975). Relationship of internal-external control to work motivation and performance in an expectancy model. Journal of Applied Psychology, 60(1), 65–70. https://doi.org/10.1037/h0076353

7 Running head: Analysis of Amazon company

Appendix A

Strengths-Weaknesses-Opportunities-Threats (SWOT) matrix Strengths 



As a worldwide e-commerce



Online retail organizations have

behemoth, Amazon has a powerful

become transparently frequent in

placement and successfully

today’s world. So, copying Amazon’s

recognized brand image in the

company structure for competing

industry.

organizations is not very tough. Some

Amazon pampers an immense amount

business that are big competitors of

of consumers for their daily needs at

Amazon includes Barnes & Noble,

cost efficient prices. This has made it

Hulu,

a consumer-based company. 

Weakness



Strikes have to potential to crush

Amazon owns various products of all

Amazon’s operations to an end. For

sorts that attracts all customers. In

example, in Europe employees went

2018 Amazon had a high profit of 56

on strikes due to some unsafe

Million of products sold

problems.

8 Analysis of Amazon Company 



Amazon Marketplace, Amazon Web



Amazon is being confronted by

Services, and Amazon Prime are the

antirust charges in the European

main component of Amazon. They

Union for gathering and utilizing

are very beneficial to the company.

information from external parties to

With over $1 Trillion market revenue

rival against them.

and over $280 billion yearly capital,



Amazon doesn’t have a lot of stores

Amazon is accurately one of the best

which is a negative point because

industry leaders in online retail.

customers like to sometimes go into stores.

Opportunities 



Amazon have the opportunity to

Government policies can also intimidate the organization of Amazon

By extending their physical shops,

in a few crucial countries. 

Amazon is one of the three retail

big time retailers and attract

behemoths confronted by inspection

consumers with the brand.

from the US for supporting supply

Amazon possesses the opportunity to

chains and industry sources connected

enhance their technology and

to human rights misuses.

company approach to lessen simulated





grow its market

Amazon can enhance rivalry against



Threats



The inflation in faking and

sales.

counterfeiting products affects

More investments of e-commerce

Amazon’s profits.

organizations can inflate the



Amazon has an immense quantity of

organization’s market share abs lessen

counterfeit reviews and this problem

the rivalry amount.

persists recently due to the worldwide

9 Running head: Analysis of Amazon company 

Amazon wants to make an important positive impact on our environment.

pandemic. 

Impact of cybercrime

Appendix B Boston Consulting Group (BCG) Matrix Star

Question Mark



E book from Amazon



Amazon fresh



Marketplace of Amazon.com



Amazon website services



Electronic Product in Amazon.com



Love film website



Alexa



Business with zappos



Amazon prime air



Video on demand

Cash Cow

Dogs



E-books



Amazon studios



Electronic books



Amazon auctions



Amazon kindle



Amazon cloud



Amazon Audio books



Amazon MP3



Amazon prime



Dog products

10 Analysis of Amazon Company

Appendix C

Internal-External (IE) Matrix IFE/EFE total scores

Strong

Average

Weak

High

I

II

III

(3-4) Medium

Amazon.com

V

VI

(2.0-2.99) Low

VII

VIII

IX

(1.1-1.99)...