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.

1. Business 189 – Professor Shirley
Presented By: Alma Rios, Jeremy lacsa, José R.
Vigil, Farhaad Sheikh, Kunal Patel

2. Agenda
o Introduction
o EFE Matrix
o IFE Matrix
o IE Matrix
o SWOT Matrix
o Quantitative Strategic Planning Matrix
o Recommended Strategy
o Organizational Structure
o Organizational Culture
o Product Positioning Map
o Target Market
o Strategy Evaluation Report
Jeremy

3. EFE Matrix
Key External Factors Weight Rating Score
Opportunities
The number of buyers over the internet is
0.25 4.0 1.0
growing
Forecasting increase in US ecommerce 0.2 4.0 0.9
Threats
eBay, OverStock (NewEgg, CDW, etc) 0.35 4.0 1.4
Government regulations and instability on
internet products and sales in international 0.05 1.0 0.05
economies.
Low market entry barriers 0.15 2.0 0.3
Totals 1 3.65
Jeremy

4. IFE Matrix
Key Internal Factors Weight Rating Score
Strengths
Customer Relationship Management 0.18 3.0 0.6
Strong Focus on R&D
0.20 3.8 0.84
Diverse Products 0.13 2.5 0.375
Logistical advantage
0.15 4.0 0.76
Weaknesses
High Debt Ratio 0.16 2.9 0.58
Risk of Introduction of Wrong New
0.09 1.9 0.19
Category
Free Shipping affects bottom line 0.09 2.7 0.27
Total 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 advantage
Opportunities - O SO WO
S4O2 - Use logistic advantage to O1,W3 - Leverage Amazon Prime
1. The number of buyers over the reach consumers in new countries subscriptions to absorb the cost of
internet is growing S1, O1 - Increase human interaction free shipping.
2. Forecasting increase in US within the website. O1,W2 - Create an online school that
ecommerce S1O2 - Provide a loyalty program to provides certifications
provide an incentive to both new and
existing members
Threats - T ST WT
S1T1 - Maintain a strong relationship to T1,W1 - Increase Bond offerings to
1. 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 Government
Newegg, CDW, etc.) pop shops for brick and mortar in use of cloud services to form
2. Government regulations and store buying relationships.
instability on internet products and
sales 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
members
Key Factor Weight AS TAS AS TAS AS TAS
Strengths From IFE
Customer Relationship Management 0.18 4.0 0.72 4.0 0.72 4.0 0.72
Strong Focus on R&D 0.20 2.0 0.40 2.75 0.55 4.0 0.80
Diverse Products 0.13 0.0 0.00 3.0 0.39 4.0 0.52
Logistical advantage 0.15 0.0 0.00 0.0 0.00 0.0 0.00
Weaknesses From IFE
High Debt Ratio 0.16 0.0 0.00 0.0 0.00 1.0 0.16
Risk of Introduction of Wrong New
0.09 3.0 0.27 2.0 0.18 1.0 0.09
Category
Free Shipping affects bottom line 0.09 2.0 0.18 2.3 0.21 1.0 0.09
Sum of Weights 1.00 1.57 2.05 2.38
Opportunities From EFE
The number of buyers over the internet is
0.25 4.0 1.00 4.0 1.00 4.0 1.00
growing
Forecasting increase in US ecommerce 0.20 4.0 0.80 4.0 0.80 3.0 0.60
Threats From EFE
Growth potential of direct competitor 0.35 3.0 1.05 3.5 1.23 3.0 1.05
Government regulations and instability
on internet products and sales in 0.05 1.0 0.05 1.0 0.05 2.5 0.13
international economies.
Low market entry barriers 0.15 3.0 0.45 3.0 0.45 3.0 0.45
Sum of Weights 1.00 3.35 3.53 3.23
Sum of Total Attractiveness Score 2.46 2.79
Jose 2.80

8. Final Recommended
Strategy
 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
Business
Marketing Operations Development Editorial
Expansion
Advertising
Communications 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 Market
Shoppers
 Early Majority Internet shoppers
 College Students
 Price conscious shoppers
 Early adopters (kindle)
Sellers
 Third party retailers
 Online sellers
Developers
 Web developers
Alma

18. New Target Market
Shoppers
 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 sellers
Developers
 Web developers
Alma

19. Balanced Score Card
Area of Objectives Target Target Primary
Deadline Responsibility
Growth 15% Increase Q4 2014 Marketing
•Improve sales through Amazon Service
certification incentive Revenue
Quality 85% positive Q4 2012 Marketing/
•Reinforce to customers the customer- survey Customer Support
driven vision
Innovation Create Q3 2013 Research &
•Provide an online certification program curriculum with Development/
for users University of Management
Phoenix
Consumer Confidence 75% of sellers Q4 2014 Marketing
•Ensure customers that Amazon sellers are certified
are certified and trustworthy
Jeremy

20. Balanced Score Card
Area of Objectives Target Target Primary
Deadline Responsibility
Growth 15% Increase Q4 2014 Marketing
•Improve sales through Amazon Service
certification incentive Revenue
Quality 85% positive Q4 2012 Marketing/
•Reinforce to customers the customer- survey Customer Support
driven vision
Innovation Create Q3 2013 Research &
•Provide an online certification program curriculum with Development/
for users University of Management
Phoenix
Consumer Confidence 75% of sellers Q4 2014 Marketing
•Ensure customers that Amazon sellers are certified
are certified and trustworthy
Jeremy

21. Conclusion
Jeremy

22. Q&A

23. References