Strategic
Management
Group 3
K Sree manojna
Sejal Malhotra
Vishakha rai
Parul
Tushar
World’s
largest
Diversified into other online
product lines (apparel, retailer
grocery, OTT, etc)
Introduction Multinational
e-commerce
company
Online
bookstore
One of the first
e-commerce
platform
MISSION & VISION STATEMENTS
VISION STATEMENT
Amazon’s mission
statement is to
“serve consumers Amazon’s vision
through online and statement is “to be
physical stores and Earth’s most customer-
focus on selection, centric company, where
customers can find and
price, and
discover anything they
convenience.” might want to buy
online, and endeavours
to offer its customers the
lowest possible prices.”
MISSION STATEMENT
Amazon PESTEL Analysis
POLITICAL LEGAL
INCREASE IN CYBER SECURITY ● INTERNATIONAL LAWS
● GOVERNMENT ● TAXATION PROCESS
● REGULATIONS
ECONOMIC ENVIRONMENTAL
● STIMULUS PESTEL ● INCREASE IN ENVIRONMENT
AWARENESS
● SUSTAINABILITY
SOCIAL TECHNOLOGY
● CONSUMER BEHAVIOUR ● INCREASE IN CYBER CRIME
● INCREASE IN WEALTH ● INCREASE IN IT EFFICIENCY
DISPARITY ● LAST MILE DELIVERY
SUPPLIER With many suppliers in the industry there is minimal bargaining power and
POWER thus supplier tend to have very little control when negotiating with major firms
BUYER Bargaining power of buyer is comparatively high as the markets are
POWER flooded with offers and discounts regularly.
PORTERS
5 FORCE INDUSTRY
RIVALRY
A high intense competitive rivalry exists among the e-commerce
platforms in terms of innovation and better customer deals.
ANALYSIS THREAT OF There is no threat in the short run due to the organizations established
SUBSTITUTES brand name. However on a long term aspect threat lies moderately low.
THREAT With the fast paced development of websites, minimal entry barrier and a
OF NEW
ENTRANTS
simple business model there is high threat of new entrants.
INDUSTRY AND COMPETITIVE
ANALYSIS- OPERATING ENVIRONMENT
Size
10percent
of GDP
GROWTH
Retail SHIFT IN
RATE OF
INDUSTRY
industry SUPPLIER
RELATIONS
in India
PROFITABILITY
E-Commerce Industry in India
Growing Demand
● India is the fastest
growing E-commerce
Opportunities market and is expected
to grow at
● India's startup ecosystem is approximately 1, 200%
growing which is well by 2026.
supported by favorable FDI ● Indian E-commerce
policies. market is expected to
● Government initiatives like reach US$ 84 billion by
startup India and Digital 2021.
India, as well as rising
internet penetration driven Increasing
by market players like Policy Support
Reliance jio. ● 1000% FDI is allowed in B2B Investments
E-commerce. ● E-commerce and consumer internet
● 100% FDI under the companies in India received more
automobile route is than US$ 4.32 billion from private
permitted in the market place equity and venture capital players in
model of E-commerce. 2019.
Three Circle Analysis
A-2-day fast delivery,easy return and payment
policies,automatic shopping via alexa or echo, AWS
B-Strong brand name, Extensive product mix, less physical
stores.
AMAZON
C- Discount policies, good quality cheap products, better B2B
business model, ALIPAY(own payment method)
D-counterfeits, easyily imitable business model
E-value large product availability, best at quality and delivery,
F-Fire phone ,global economic crisis
ALIBABA
G-Chinese government regulations, global economic crisis
FIRM INFRASTRUCTURE
SECONDARY ACTIVITIES
• Technologically advanced infrastructure, with centralised customer
data warehouse
HR MANAGEMENT
• Amazon has one of the highest number of employees [global count-
MA
840,400 (2020)] and their morale is maintained through their unique
RG
employee benefits.
NI
● Huge investments in R&D
● AWS
TECHNOLOGY
VALUE
PROCUREMENT
CHAIN
• Vast number of integrated suppliers, with effective distribution
channels and centers. ANALYSIS
INBOUND OPERATIONS OUTBOUND MARKETING SERVICES
MA
LOGISTICS LOGISTICS & SALES
with quality functionality
R
Amazon marketplace
for timely exchange
delivery and other
G
24hours warehouse
offering members
goods to suppliers
party dependence.
recommendations
and well-equipped
shopping through
I
channels for third
Return of unsold
N
Amazon Prime
personalisation,
Regular control
Close proximity
procedures.
discounts &
and discard
Interactive
benefits
operation
•
•
•
•
•
•
PRIMARY ACTIVITIES
SWOT
Analysis
Amazons strategy is driven by its source of competitive
advantage
Cost leadership with little product differentiation
Technological Capabilities
actualizing the benefits of economies of scale
leveraging the efficiencies from the synergies
between its external drivers and internal resources
Big Data Analytics- tool to map consumer behavior
Product Development Diversification
core strategies used by Amazon Books🡪 e-Retail (apparel to grocery)🡪 OTT
Services & Cloud (AWS)
Alexa, Echo- IOT
STRATEGIC
Market Development Mergers & Acquisitions ANALYSIS
Prime-OTT services AWS acquired Emvantage Payments
(2016)
Tapzo- an Indian Payment Platform-
acquired by Amazon pay (2018)
• CASHCOW • DOG
Kindle
Amazon
Retail
MP3 (music)
BCG
MATRIX Prime
Whole
foods
Alexa market
Aws (Cloud)
• STAR
• QUESTION
MARK
GLOBAL
Global business
strategy BUSINESS
STRATEGY
Glocal Approach
Anyone from
anywhere can
access anything
• Amazon’s • Amazons
corporate organisational
culture pushes culture has the
employees to go following
beyond characteristics:-
traditional limits • 1.Boldness
Organizationa and conventions • 2.Customer-
to develop centricity
l culture bright ideas and
solutions.
• 2.Peculiarity
Innovation & Entrepreneurship
SMART Goals
MEASURABLE RELEVANT
They make high-judgment exceptions & All the goals designed by
seek to be the most technically proficient amazon revolve around Its customer satisfaction
HR organization in the world. Regular benefiting the environment & retention at the end
auditing is their core strength. and customer community.
To offer: Earth's biggest Launch of 10,000 electric
selection and to be Earth's most net-zero carbon rickshaws in India by 2025,
customer-centric company. by 2040 Zero net carbon by 2040
SPECIFIC ATTAINABLE TIME BOUND
CSR INITIATIVES
In 2020, the e-commerce The ultimate aim of the
giant created the Amazon In 2020 due to the risk of company is to be using
Relief Fund, with a USD25 The company hosts ‘Girls COVID-19 coronavirus, the The company has started
Who Code’ events 100% renewable energy Packaging-Free program in
million initial contribution, company recommended by 2030
focused on supporting its occasionally to help get all of global employees to a number of cities.
more girls interested in As an important step Customer orders within
independent delivery who work in a role that towards the achievement
service partners and other coding can be done from home, this program are shipped
of zero carbon operations, in their original packaging
stakeholders to deal with do so for a certain period The tech giant aims to
the negative impact of of time without secondary or
achieve zero carbon for additional packaging.
coronavirus developments 50% of all shipments by
on the business. 2030
RECOMMENDATIONS
Contactless delivery or delivery
through drones specially in
highly populated area (India)-
expecting drones will be legal
for commercial purposes in
Electromagnetic radiations
near future. released from every
message can be reduced,
they should deliver on the
time and date pre-decided
Packaging free delivery or
using e-packaging –legal
problems on plastic usage,
expecting plastic to be
banned in near future Alternatives for Chinese
Products in the lower
pricing sections.
With the
pandemic , the
delivery charges
have hiked up
tremendously –
find better
options or keep
the weight low.
With supply being
disturbed/low ,
amazon one-day
delivery has
affected a lot-they
should find new
strategy as non-
delivery has
hampered brand
loyalty
