Global Startegy & Policy

全球战略与政策代写 The internet certainly changed our understanding of the business as well as the way we buy our goods. Indeed, today’s online…

INTRODUCTION

The internet certainly changed our understanding of the business as well as the way we buy our goods. Indeed, today’s online buyers know what it takes to buy and have a book online. The highway and mail-order networks also occupy a position in the blend of shopping directions but are not the only way to shop. The information revolution has already seen the long-haul purchasing by customers increase significantly because they do not have the same geographical barriers. The strategic value of internet firms has affected their approach. The on-line bookshop Amazon was one amongst the first businesses to profit from this.

The case offers a description of the inventory control of Amazon.com. Amazon’s creator, Jeffrey Preston Bezos, started the business by discovering the Internet provides tremendous potential for online commerce. The case discusses the various goods and characteristics on the web. The case, therefore, addresses the value ideas of Amazon as well as its requirements for channel suppliers. It addresses Amazon’s inventory management techniques. The case discusses Amazon’s intention to sell different retailers’ goods on its website.

EXTERNAL ANALYSIS 全球战略与政策代写

PESTEL ANALYSIS

Political factors
  1. In developing countries, political stability is an incentive for business diversification.
  2. Government funding for e-commerce is both an opportunity and a challenge because of increased rivalry, such as China’s e-commerce companies that grow business.
  • Growing public efforts towards cybersecurity is an opportunity to improve market conditions (Kumar, 2006).
Economic factors 全球战略与政策代写
  1. Established markets are similarly stable in economic terms and seem to be an opportunity as businesses can invest and benefit in the economy.
  2. The growing availability of revenue in developing countries provides an essential opportunity to improve the financial output of the business.
  • China’s imminent economic slowdown is a concern as China is one of the main markets it aims to enter (Kotler, 2002).
Social factors
  1. The rising inequality in wealth is indeed a threat.
  2. Rising consumption is an opportunity in developing nations.
  • Growing online shopping activities seem a reasonable assumption for Amazon to expand and boost sales (Hub, 2020).
Technological factors
  1. Fast technical obsolescence is a hazard and a chance to improve the enterprise.
  2. Enhance the productivity of its resources, thus shielding the enterprise from relative newcomers.
  • Current cybercrime rates are a significant concern (Kapferer, 2004).
Environmental factors 全球战略与政策代写
  1. The increasing interest in environmental programs, which will boost equity, is also an opportunity.
  2. The emphasis on sustainable business growth is an opportunity because higher levels of sustainability will increase environmental problems and enhance the brand image.
  • The business can improve its corporate reputation by growing the prominence of low-carbon lifestyles (Keller, 2003).
Legal factors
  1. Growing product regulation provides a way of improving consumer service and protection.
  2. Changing import and export laws is also a chance for Amazon to extend its global operations to take advantage of sellers’ ability to reach suppliers around the world and to challenge the outcome of trade prohibitions.
  • It is enhancing market environmental security laws to improve productivity (Reichheld, 2003).

PORTER’S FIVE FORCES 全球战略与政策代写

  1. Competitive Rivalry – High

The competition throughout the online market is powerful. The explanation is that in recent years the proportion of participants has risen. Secondly, conventional brands also give these online retailers additional competition. Amazon’s rivalry is eBay, Alibaba, Flipkart, etc. For Amazon, all these giants not only have challenging times, but they have also been fought by a large number of small-scale retailers, brands, and online shops for market share (Kapferer, 2004).

  1. The threat of New Entrants – Low

In the e-retail market, several new brands have joined and arisen, but can not pick up a force such as Amazon. Investments throughout warehousing, distribution, logistics, marketing, as well as other factors, will be significant. Likewise, Amazon’s resources, as well as brand reputation, are several other variables that make it impossible for emerging candidates to challenge or try to draw market shares from Amazon. The risk of new entrants on Amazon is, therefore, low (Berkowitz, 2001).

  1. Bargaining Power of Suppliers – Low 全球战略与政策代写

Amazon guarantees that its suppliers comply with ethical standards at their workplace and do not envisage any future merger. The Amazon supplier’s switching costs seem to be almost negligible. Amazon is ready to provide the required goods with a wide range of suppliers (Sama, 2019).

  1. Bargaining Power of Buyers – High

The costs for the consumers are minimal while switching. Buyers are now well educated, and buyers have a range of choices to choose from because of growing trends in online retailing. Because of their number of rivals, Amazon is actively negotiated by customers (Talwar, 2013).

  1. The threat of Substitutes – High

Amazon is substituted by supermarkets such as Walmart, branded stores, Amazon-market brands, small city shops, etc. Amazon is facing quite a substantial risk of substitution because it offers nothing special. And at the same time, many people also choose to go to a store online for their needs. All this poses a significant challenge to Amazon’s substitution (Zeithaml, 1988).

 

INTERNAL ANALYSIS 全球战略与政策代写

VALUE CHAIN ANALYSIS

  1. Amazon Inbound logistics

In the area of logistics, client support, and refund policy, Amazon accepts ultimate responsibility. The implementation of FBA provides an alternative for vendors who enjoy free delivery, free packaging, and other incentives for third-party sellers’ items. Amazon introduced other options for distribution as well. Beijing Century Joyo Courier Services, for example, is an Amazon affiliate licensed as an ocean shipper with the U.S. government (Doyle, 2000).

  1. Amazon Operations

Amazon operations have been divided across three parts

  1. North America. This section manages websites based in North America. Revenue grew by 33 percent in this sector
  2. International. This division operates worldwide websites; revenues increased by 21%. International exchange rate shifts affect the world’s net profits.
  • Amazon Web Services (AWS). This segment focuses on international sales of computers, storage, databases, and other resources for start-ups, businesses, public agencies, and academic institutions. In recent years AWS revenues have risen by 43% and 47% (Hub, 2020).
  1. Amazon Outbound Logistics 全球战略与政策代写

In general, the following is included in Amazon outbound logistics:

  1. Fulfillment centers.
  2. Co-sourced and outsourced arrangements.
  • Digital delivery.
  1. Physical stores.

Amazon historically relied mostly on services with overnight shipping companies like UPS, FedEx, and TNT but now invests in its system of logistics that includes aircraft, trains, ships, cars, and trucks. Amazon has revealed the distribution system Amazon Prime Air and the intra-metro operation (Gig-economy) Amazon Flex (Andaleeb, 2016).

  1. Amazon Marketing and Sales

However, during the past eight years, Amazon’s annual worldwide marketing budget has steadily risen over USD 13.8 billion, comprising ads as well as other promotional expenditures. Amazon is investing more in ads than Wal-Mart Stores, Kroger combined, Target, Best Buy, and Home Depot. It can also be claimed that sales and marketing are among Amazon’s key sources of competitive advantage (Hub, 2020). 全球战略与政策代写

  1. Amazon Service

Exceptional service provides the e-commerce and cloud storage business with a significant source of value. Amazon can be reached via mobile, email, message as well as social media. Amazon provides sellers with its Sales Coach program, which informs sellers on opportunities to prevent out-of-stock sales, introduce a range, and increase market competitiveness.

For the fifth consecutive year in 2018, the e-commerce and cloud computing business has achieved the UK Customer Satisfaction Index (UKCSI) ranking of their consumers from the Institute of Customer Service. Likewise, for eight years in a row by 2018, the American Customer Satisfaction Index (ACSI) rating Amazon first and the topmost on the list (Hub, 2020).

VRIO ANALYSIS

VRIO Analysis Table – Amazon.com Inc. 全球战略与政策代写

The core skills of Amazon are focused on organizational and business tools that meet the entire VRIO (value, rarity, inimitability, and organization) parameters. Amazon’s non-core and core competencies are defined as follows in the VRIO analysis table:

Amazon’s Organizational Resources & Capabilities V R I O
The increasing presence of bricks and mortars.
Increased online variety and diversification
Increasing private label product range
Robust national, regional and international alliance with distribution networks
Experience focused on a comprehensive e-commerce background
Strategic warehouses as well as distribution centers in the country
Competitive Sustained Advantages:
Substantial brand market equity – a large degree of global brand awareness
Large-market capitalization – a thing of the past – high market cap
Foreign affiliate network expanding international market scope regularly
Fitness for artificial intelligence

Non-core Competencies

  1. The increased presence of brick and mortar.
  2. Rising virtual services diversity.
  • It increased private label product offerings.
  1. The vast network of distribution (Levy, 1955).

Core Competencies 全球战略与政策代写

  1. In the global economy, the Amazon.com has substantial equity. Via its strategy, the company draws consumers to its existing and new goods.
  2. The corporation is among the world’s most successful firms, and its high market capitalization is comparable. It allows Amazon.com Inc. to finance and reinvest in the expansion funding and diversification of the company.
  • Incentives for affiliates to share the connection with items on the website of the Amazon.com Associates programs are offered. This core competency being also used by the organization, and the network of members expands.
  1. The AI capabilities of such a company, including Alexa, introduce product enhancements and enhanced customer service, making companies an acceptable forum for customers (Kumar, 2006).
全球战略与政策代写
全球战略与政策代写

ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY (CSR) AND SUSTAINABILITY

CARROLL`S FOUR-PART DEFINITION ANALYSIS

  1. Economic Responsibilities

In evaluating Amazon, it became apparent that as per Bezos in chapter 3, its vital priority is as profit-oriented as practicable for its shareholders. In addition, Amazon now hires more than 51,000 employees worldwide. This same chapter also addressed some severe problems concerning workplace practices and the battle against unionization (Keller, 2003).

  1. Legal Responsibilities

Amazon has been embroiled in court cases for two incidents.

  1. The controversial subject of sales tax in the US was labeled as unlawful by some of them.
  2. The corporation’s anti-unionization campaigns, where workers complain they are dismissed unfairly.

Amazon aggressively found ways to escape this tax in the context of the sales tax or even enforced laws against the new legislation, which forced them to pay sales tax. It can be seen in the legal evaluation of Amazon that they are constantly pursuing loopholes or ambiguous interpretations of the law but still work within legal limits (Hub, 2020).

  1. Ethical Responsibilities 全球战略与政策代写

Amazon’s ethical conduct has several minor problems recorded over the last decade. Several customers suggested that product prices varied as they try to enter a zip code based on their location. The review section to Amazon’s product pages often covers a wider ethical problem. The analysis of the Company Website is the primary destination for many Internet users to collect information to make purchase decisions (Business Cable, 2010). Amazon has also been confirmed to have removed reviews that hurt sales. Furthermore, it becomes challenging to assert Amazon is running due to the rough work practices listed by workers in the warehouses or taking over several subsidies (Andaleeb, 2016).

  1. Philanthropic Responsibilities

The organization is not known because of its compassion with respect to Philanthropy. Concerning other technology firms, Amazon is among the few who do not offer charity. Amazon’s only record of donations was a modest $25,000 grant to 80 groups of non-profit authors (Martinez and Heim, 2012). Amazon has done a lot in the field of CSR over the past eight years. Last week, the company contributed $3 million to Seattle University’s new Center for Research and Innovation (Talwar, 2013).

 

 

SWOT ANALYSIS 全球战略与政策代写

  • Strengths

  1. The strengths of Amazon are focused primarily on a three-way strategic approach towards cost control, distinction, and emphasis. This strategy has allowed the company to benefit from this plan of operation and added to the value of its shareholders.
  2. The competitive advantage to Amazon comes mainly from the use of IT and e-commerce as a flexible network.
  3. Another of Amazon’s most significant advantages is that it is well-known and helps reach new markets.
  4. The company is being eager to upgrade customer efficiency with advanced logistics as well as distribution strategies, resulting in a substantial competitive advantage (Sama, 2019).
  • Weaknesses

  1. Amazon has been able to shift from its core expertise in online books towards new fields as a continuation of its diversification approach in the last years. While this could be a successful idea from risk differentiation, Amazon needs to be mindful that its competitive advantage is being lost.
  2. Since Amazon provides its customers with free shipping, it is at risk of losing its revenues and may not optimize its cost.
  3. The emphasis on digital shopping could impede its growth plans in developing markets, particularly (Talwar, 2013).
  1. Amazon does have the potential to grow tremendously by introducing the online payment platform. This will also increase the earnings of the business, as it profits from its internal payment service.
  2. Amazon now has an ability to develop more items by its name rather than to be a platform to sell products from third parties.
  3. Amazon’s other chance is to extend its global presence and establish new locations in developing markets, giving it an advantage in the dynamic online shopping industry (Zeithaml, 1988).
  • Threats

  1. One of Amazon’s significant challenges is the rising outcry about online shopping that allows user data vulnerable to identity fraud and intrusion.
  2. The business does have to battle litigation against publishers as well as competition in the retail business due to its vigorous pricing tactics.
  3. Amazon’s excessive emphasis on cost control is becoming a cause of concern for both the company as well as its competitors who get disturbed by Amazon’s acquisition (Reichheld, 2003).

 

RECOMMENDATIONS FOR STRATEGIC DEVELOPMENT 全球战略与政策代写

Even though Amazon’s past certainly positioned the company well enough for the future, as well as its progress towards the domination of its e-commerce sector, the continuing progress is not assured. In addition, now for Amazon should allow it to continue resolving and growing these issues. The following facts are suggested guidelines.

  1. Web selling continues and accelerates, especially in Asia as well as Eastern Europe, not only on foreign but instead developing markets (Light, 1997).
  2. Accelerate the support for and development of web-based technologies for AWS and FBA products as well as service distributors and customers (Levy, 1955).
  3. Promote market free or subsidized web connectivity, with limited or even no online access, to broaden the e-commerce experience towards everyone who does not typically access it, particularly in developed nations (Kumar, 2006).
  4. In order to allow autonomous distribution of small popular goods (drones as well as computer-controlled delivery vehicles), Amazon should implement regulations (Kotler, 2002).
  5. Growing their patented web-based technology, that is, Systems for payment. This will broaden their brand as well as introduce lines of high margin sales (Kotler Phillip, 2010).
  6. To even further strengthen its affordable price or low-cost leadership will extend its web-based product range (Keller, 2003).
  7. Enable retail places where buyers can obtain the “Amazon experience” virtually
  8. Aligning such structures to current storage and delivery hubs would make it even more cost-effective than designing brick and mortar structures that are new. Offer locations where customers with limited connectivity are willing to enter and purchase through Amazon and collect at these locations, too (Kapferer, 2004).

 

RECOMMENDATIONS FOR (CSR) AND SUSTAINABILITY 全球战略与政策代写

Specifically, how it should do well on CSR, there have always been some suggestions ever to be formed regarding Amazon’s market practices.

  1. The organization usually has a reactive approach in which they either obey such guidelines or delay until it can be technically required to do so. The most critical change throughout their CSR approach will be to become a more constructive organization with respect to CSR (Andaleeb, 2016).
  2. Across the study, it has stated that only profits can be derived from the business model: people planet profits (3P’s) for Amazon. Most of their poor conduct with CSR could be related to their target of (hyper) profitability. A significant innovation seems to be getting the equilibrium correct between the three aspects of such a big picture (Berkowitz, 2001).
  3. As described in the CEO’s written statement, the workers are significant, but it may not necessarily function by those terms. Amazon can be successful not just for the workers at the head headquarters but also about others employed in the support department as well as warehouses. Continuing to improve standards of employment will help maintain the equilibrium among the 3P’s (Doyle, 2000).
  4. There have been two instances in the study in which Amazon has deliberately found loopholes in regulations. The test revealed that the action should be deemed bad while it is legitimate. The organization should then rely less on the manipulation of such vulnerabilities (Hub, 2020).

As a preliminary suggestion, if the organization became more transparent regarding its operations, and particularly those throughout the domain of CSR and Sustainability, it may be significantly improved. It has never released any study with one such subject throughout the history of the company. It is also impossible for NGOs, non-profits, or perhaps even the press to document and motivate them to improve on problems with the organization (Hub, 2020)

 

REFERENCES 全球战略与政策代写

Andaleeb, S. S., 2016. Strategic Marketing Management in Asia. London: Emerald Group Publishing Limited.

Berkowitz, D., 2001. Estimating Differential Lag Effects for Multiple Media. Journal of Advertising, pp. 59-66.

Doyle, P., 2000. Value-Based Marketing: Marketing Strategies for Corporate Growth and Shareholder Value. S .l.: Wiley.

Hub, B. S., 2020. Amazon SWOT 2020 | SWOT analysis of Amazon. [Online]
Available at: https://bstrategyhub.com/swot-analysis-of-amazon-amazon-swot/
[Accessed 20 September, 2020].

Kapferer, J.-N., 2004. The new strategic brand management. London: Kogan Page.

Keller, K. L., 2003. Strategic brand management: Building, measuring, and managing brand equity. New Jersey, USA: Pearson Education International.

Kotler, Phillip, G. A., 2010. Principles of marketing. Upper Saddle River, New Jersey: Pearson.

Kotler, P., 2002. Marketing Management. USA: Prentice Hall Inc.

Kumar, M., 2006. Marketing management. New Delhi, India: Vikas Publishing House.

Levy, G., 1955. The product and the brand. Marketing Journal of Harvard Business School, pp. 33-39.

Light, L., 1997. Brand loyalty management: The basis for profitable growth. Direct Market, pp. 36-44.

Reichheld, F. F., 2003. The One Number You Need to Grow. USA: Harvard Business Review.

Sama, R., 2019. Impact of Media Advertisements on Consumer Behaviour. Journal of Sociology, pp. 111-124.

Talwar, A., 2013. Principles of marketing. London: University of London International Program.

Zeithaml, V. A., 1988. Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence. Journal of Marketing 52(3):2-22 · July 1988 with 27,556 Reads , pp. 2-22.