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Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
Amazon: Strategic Management
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Amazon: Strategic Management

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Analyzed Amazon.com Business Structure. EFE Matrix, IFE Matrix, IE Matrix, SWOT Analysis, Quantitative Strategic Planning Matrix, Recommended Strategy, Organizational Structure, Organizational …

Analyzed Amazon.com Business Structure. EFE Matrix, IFE Matrix, IE Matrix, SWOT Analysis, Quantitative Strategic Planning Matrix, Recommended Strategy, Organizational Structure, Organizational Culture, Product Positioning Map, Target Marget, Strategy Evaluation Report.

I gained knowledge and experience to consult for Strategic Business Management. I am very interested in mergers and acquisitions.

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    • 1. Business 189 – Professor ShirleyPresented By: Alma Rios, Jeremy lacsa, José R.Vigil, Farhaad Sheikh, Kunal Patel
    • 2. Agendao Introductiono EFE Matrixo IFE Matrixo IE Matrixo SWOT Matrixo Quantitative Strategic Planning Matrixo Recommended Strategyo Organizational Structureo Organizational Cultureo Product Positioning Mapo Target Marketo Strategy Evaluation Report Jeremy
    • 3. EFE MatrixKey External Factors Weight Rating ScoreOpportunitiesThe number of buyers over the internet is 0.25 4.0 1.0growingForecasting increase in US ecommerce 0.2 4.0 0.9ThreatseBay, OverStock (NewEgg, CDW, etc) 0.35 4.0 1.4Government regulations and instability oninternet products and sales in international 0.05 1.0 0.05economies.Low market entry barriers 0.15 2.0 0.3Totals 1 3.65 Jeremy
    • 4. IFE MatrixKey Internal Factors Weight Rating ScoreStrengthsCustomer Relationship Management 0.18 3.0 0.6Strong Focus on R&D 0.20 3.8 0.84Diverse Products 0.13 2.5 0.375Logistical advantage 0.15 4.0 0.76WeaknessesHigh Debt Ratio 0.16 2.9 0.58Risk of Introduction of Wrong New 0.09 1.9 0.19CategoryFree Shipping affects bottom line 0.09 2.7 0.27Total 1 3.615 Jeremy
    • 5. IE Matrix Strong Average Weak (3-4) (2.0-2.99) (1-1.99) High II III (3-4)Medium IV V VI(2.0-2.99) Low VII VIII IX(1-1.99) Jeremy
    • 6. SWOT Matrix Strengths - S Weaknesses - W 1. Customer Relationship 1. High Debt Ratio Management 2. Risk of Introducing a New Product 2. Strong Focus on R&D or Service 3. Diverse Products 3.Free Shipping affects bottom line 4. Logistical advantageOpportunities - O SO WO S4O2 - Use logistic advantage to O1,W3 - Leverage Amazon Prime1. The number of buyers over the reach consumers in new countries subscriptions to absorb the cost ofinternet is growing S1, O1 - Increase human interaction free shipping.2. Forecasting increase in US within the website. O1,W2 - Create an online school thatecommerce S1O2 - Provide a loyalty program to provides certifications provide an incentive to both new and existing membersThreats - T ST WT S1T1 - Maintain a strong relationship to T1,W1 - Increase Bond offerings to1. Growth potential of direct increase consumer loyalty. gain further lead over competitors.competitors (eBay, Overstock S2,T3 - Set up affiliates with mom and T1,W2 - Capitalize on GovernmentNewegg, CDW, etc.) pop shops for brick and mortar in use of cloud services to form2. Government regulations and store buying relationships.instability on internet products andsales in international economies.3. Low market entry barriers Jose
    • 7. Quantitative Strategic Planning Matrix Establish a loyalty Increase human program to provide Create an online interaction within further incentive to school that provides the website. both new and existing certifications membersKey Factor Weight AS TAS AS TAS AS TASStrengths From IFECustomer Relationship Management 0.18 4.0 0.72 4.0 0.72 4.0 0.72Strong Focus on R&D 0.20 2.0 0.40 2.75 0.55 4.0 0.80Diverse Products 0.13 0.0 0.00 3.0 0.39 4.0 0.52Logistical advantage 0.15 0.0 0.00 0.0 0.00 0.0 0.00Weaknesses From IFEHigh Debt Ratio 0.16 0.0 0.00 0.0 0.00 1.0 0.16Risk of Introduction of Wrong New 0.09 3.0 0.27 2.0 0.18 1.0 0.09CategoryFree Shipping affects bottom line 0.09 2.0 0.18 2.3 0.21 1.0 0.09Sum of Weights 1.00 1.57 2.05 2.38Opportunities From EFEThe number of buyers over the internet is 0.25 4.0 1.00 4.0 1.00 4.0 1.00growingForecasting increase in US ecommerce 0.20 4.0 0.80 4.0 0.80 3.0 0.60Threats From EFEGrowth potential of direct competitor 0.35 3.0 1.05 3.5 1.23 3.0 1.05Government regulations and instabilityon internet products and sales in 0.05 1.0 0.05 1.0 0.05 2.5 0.13international economies.Low market entry barriers 0.15 3.0 0.45 3.0 0.45 3.0 0.45Sum of Weights 1.00 3.35 3.53 3.23Sum of Total Attractiveness Score 2.46 2.79 Jose 2.80
    • 8. Final RecommendedStrategy Introduce Online Certification Course for Amazon Vendors – Amazon University Expand & Grow!  Unrelated Diversification  Strategic Alliance with the University of Phoenix  Teach Amazon Vendors how to be effective by offering  Logistics, Customer Service, & Transactions Jose
    • 9. Current Organizational Structure (Multidivisional Structure) Board of Directors Jeff Bezos Corporate R&D Founder and Corporate HQs CEO Staff CEO CEO CEO CEO CEO BusinessMarketing Operations Development Editorial Expansion AdvertisingCommunications Warehouse Ops. Strategic Business development Software design, Web site design Customer Service Relationships New product & development and Editorial content Special Orders service development maintenance Book features Customer Programs Krunal
    • 10. Proposed Organizational Structure Krunal
    • 11. Amazon Leadership Principles Customer Obsession Ownership Invent and Simplify Are Right, A lot Hire and Develop the Best Insist on the Highest Standards Think Big Bias for Action Frugality Vocally Self Critical Earn Trust of Others Dive Deep Have Backbone; Disagree and Commit Deliver Results
    • 12. What’s it like to work for Amazon? For a Senior Manager? Employee’s are treated as absolute equal in the work place. For an Engineer? It’s draining. For a Warehouse Employee? White Collar sweat shop Farhaad
    • 13. Amazon Culture Improvement Proposal A continuous seeking of the optimal balance between flexibility and control (Work-Life Balance) Responsibility and personal empowerment Commitment to one’s group, the company and to one’s fellow citizens Farhaad
    • 14. Product Positioning Map Higher Quality Lower Price Alma
    • 15. Product Positioning Map - Proposed Higher Quality Lower Price Alma
    • 16. What stage do you think the E-commerce market is in?
    • 17. Current Target MarketShoppers Early Majority Internet shoppers College Students Price conscious shoppers Early adopters (kindle)Sellers Third party retailers Online sellersDevelopers Web developers Alma
    • 18. New Target MarketShoppers Late Majority and Laggard Internet Shoppers Early Majority Internet shoppers College Students Price conscious shoppers Early adopters (kindle)Sellers Current Low Performing Sellers Third party retailers Online sellersDevelopers Web developers Alma
    • 19. Balanced Score CardArea of Objectives Target Target Primary Deadline ResponsibilityGrowth 15% Increase Q4 2014 Marketing•Improve sales through Amazon Servicecertification incentive RevenueQuality 85% positive Q4 2012 Marketing/•Reinforce to customers the customer- survey Customer Supportdriven visionInnovation Create Q3 2013 Research &•Provide an online certification program curriculum with Development/for users University of Management PhoenixConsumer Confidence 75% of sellers Q4 2014 Marketing•Ensure customers that Amazon sellers are certifiedare certified and trustworthy Jeremy
    • 20. Balanced Score CardArea of Objectives Target Target Primary Deadline ResponsibilityGrowth 15% Increase Q4 2014 Marketing•Improve sales through Amazon Servicecertification incentive RevenueQuality 85% positive Q4 2012 Marketing/•Reinforce to customers the customer- survey Customer Supportdriven visionInnovation Create Q3 2013 Research &•Provide an online certification program curriculum with Development/for users University of Management PhoenixConsumer Confidence 75% of sellers Q4 2014 Marketing•Ensure customers that Amazon sellers are certifiedare certified and trustworthy Jeremy
    • 21. Conclusion Jeremy
    • 22. Q&A
    • 23. References

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