9
Strategic Process and Analysis
Rodrick Fields
John Thorne
Strategic Process and Analysis
Capella University
July/26/2021
Table of Contents
Executive Summary………………………………………………………………………………………………………….1 Introduction……………………………………………………………………………………………………………………..1 Amazon AFI Structure………………………………………………………………………………………………………1 Analysis…………………………………………………………………………………………………………………………..2 VRIO Analysis of Amazon………………………………………………………………………………………………..2
Amazon Functions and Core Competencies………………………………………………………2 PESTLE………………………………………………………………………………………………………………………….3
The Five Competitive Forces…………………………………………………………………………………………….3
Organization response to Key Competitive Forces……………………………………………….4
Strategy Recommendation…………………………………………………………………………………………………4 References……………………………………………………………………………………………………………………….6
Executive Summary
Everybody in the twenty-first century needs things to be accessible to them instantly, with just one click. This is precisely what Amazon does. Amazon.com is a web-based retailer. It is among the most dependable online merchants. Customers’ carts in retail outlets must be vacant or contain fewer items to purchase, but their Amazon trolleys are always full of orders. If you walk outdoors in any community, you will rarely see a front lawn or porch without cartons waiting to be grabbed by residents or placed in their recyclables (Barney, 2019). Amazon is headquartered in the U.S but also has production facilities, Europe, and South America.
Amazon AFI Structure Analysis
AFI framework analysis can be a helpful tool that connects the three stages of planning: analysis, formulation, and execution. Corporate entities use this promotional campaign to gain a competitive edge and preserve forceful profit margins. This method has the advantage of separating initial assessment outside the assessment (Porter, 2016). The internal analysis has been performed because of the first step, followed by external and internal analysis, innovation approach components, and execution. However, the structure lacks dragging because the system works best in a straight route entirely dependent on environmental changes.
Analyze the internal environment of the organization.
Over the decades, Amazon has produced several well-known corporate strategy joint ventures with famous brands. Through its purchases, it gives the economy considerable indications about its growth potential or global expansion. Above everything, IMDb, Zappos, Whole Foods, Blink, and Alexa are all provided by the company. Many other excellent companies in the mainstream press, retail channels, electronic components, and payment systems are represented. Let us look at the variety of competitive organizational strategies now that you have learned about its history.
VRIO Analysis of Amazon
VRIO Amazon and Internal analysis
Amazon’s strengths have posed a threat to the company’s long-term viability. This research examines each critical activity, business features, and core competencies as the cornerstone of the company’s internal abilities.
Organizational Resources
Customer-friendly website: Amazon.com is a step ahead of its rivals regarding online shopping via net-evolved webpages. The business will be able to respond to customer requests fast and effectively thanks to the website.
Reliable Infrastructure
To serve multiple distribution centers, Amazon.com has a durable and extensive guide that is nicely automated. A low-cost structure has resulted in lower costs, which, when combined with a wide range of products, has resulted in a better customer experience. Amazon.com has achieved this by avoiding the costs of running a physical store by using online marketing.
Amazon Functions and Core Competencies
Website skills.
The business recognized the benefits of using the internet and created websites to start serving its customers.
Customer courting:
Amazon.com has implemented effective customer relationship management, allowing it to retain existing customers while also attracting new ones domestically and internationally.
E-trade:
This is one of Amazon’s core competencies. The e-trade services provide online searching for customers around the world.
PESTLE Analysis of Amazon
The “PESTEL” structure assisted Amazon in identifying traits that would affect people in six key areas, namely, Political considerations and regions to focus on an inclusive policy stance, taxation, start changing limitations, and so on. GDP, interest rates, leisure activity prices, sell the product, and other macros and microeconomic conditions are all examples of financial (Castro, et al., 2020). Social factors include social traits, population growth rates, demography, and professional expectations, among other things. Equipment, documents innovations, R&D, and other technological factors are included. Health, security, job opportunities, prejudice, buyer, and competition law are all legal considerations. Weather and environment are causes of natural factors.
PESTLE is made up of external factors that businesses cannot control until they open into each other. Amazon’s managers can use the PESTLE methodology to understand the corporation’s progress and procedures, success factors, or threats. If Amazon runs into any political or military issues, they can hire politicians to help them. Because Amazon is so popular, they can use data analysis or cultural activist groups to tell them what and how to offer countries. Amazon is well-versed in the field of technology. They can come up with more efficient ways to handle online purchases. If Amazon follows the regulations and legal laws and the promises made to their consumers, they may not face any legal problems.
The Five Competitive Forces
Supplier Power
How efficient are your service providers? Is it acceptable for them to impose their allegations on you, and are you pinned? If several providers offer the same product at the same quality and price, the suppliers do not have many clouts. On the other hand, if the dealerprovides truly unique goods that no one else can match, they have more influence.
Buyer Power
How easy is it for consumers of your good or service to pressure you to lower your prices? If what you have to offer is accurate and in demand, you are in a fantastic position. Otherwise, you might want to compete with the current fees.
Competitive Rivalry
What is the total number of contests you have? In contrast to you, how successful are they? You have assertive power if you offer unique customer experiences that no one else can match.
Threat of Substitution
Is it possible for your customer to find a suitable model for yours to complete the task? The best quality is one that cannot be replaced.
The threat of New Entry
How challenging is it for human beings to remain competitive with you all in your global market? Proprietary products, the economy of scale, and intricacy can all be heroes. Michael Porter created the five-forces methodology. Porter’s five forces intelligent vehicle a company in determining its operational efficiency in comparison to its competitors.
How can the organization respond to these forces to better position itself?
Amazon can takecritical times to such five dimensions by analyzing how each one affects the company’s performance. The process of identifying and evaluating those forces. This will allow a company to create strategies that respond appropriately to the fierce competition (Cooper, 2020). Rivals do not relent in their pursuit of excellence. Sales volume is the first variable that indicates; every company needs a traffic jam because customers are the ones who buy shares in the business.
Strategy Recommendation
The following five characteristics of corporate strategy formulation are expressed: Preparing a strategy. Integration of strategic goals is organized—coordination of actions to achieve the strategic objectives. Inspiration to achieve strategic goals. The system of enforcing the method is being monitored. Preparing a strategy entails implementing sub-features like foresight, approach enhancement, and financial planning.Predicting the future comes before the $64000 business plan mentoring job. It is devoted entirely to examining a wide range of internal and external aspects (conditions) of the firm’s management. To predict the likelihood of enhancement and assess the risk. A scholarly prediction enables you to apply a legitimate strategy to the company leading.
Leaders have a significant impact on the industry. Assume that leadership somehow does not endorse their employees, causing them to be dissatisfied with their tasks. At the final moment of each day, every company has the same specific goal, so they should work together to achieve it. It all begins with effective leadership. The assessment of VRIO, PESTLE, and the Five Competitor Attempts to force tends to help the top business take advantage of opportunities that affect the business’ success. Amazon, for example, has excellent customer service techniques based on various inventory levels and delivery companies, according to a Case study.
Even though the population was undergoing a catastrophe due to the Covid-19 Disease outbreak, Amazon has excellent communication skills. Everyone is first port of call whenever those who needed anything quick and independent was Amazon. Amazon adheres to all VIRO guidelines and strives to enhance the customer experience as the company grows.
References
Barney, J., & The Middle Ground. (2019). The resource-based view of the firm by Jay Barney [Video] | Transcript. Retrieved from https://www.youtube.com/watch?v=- KN81_oYl1s
Castro, F. D., Lopes, G. R., & Brondizio, E. S. (2020). The Brazilian Amazon in Times of COVID-19: from crisis to transformation? Ambiente & Sociedade, 23.
Cooper, R. G. (2020). The pandemic pivot: the need for product, service, and business model innovation. Innovation Management. SE, Dec, 2. Retrieved from https://www.stagegate.com/uncategorized/pandemic-pivot/
Flamand, O. J., Wisher, A., & Riley, S. (2020). Strategic Plan: Amazon. Retrieved from https://scholarworks.umt.edu/cgi/viewcontent.cgi?article=1330&context=utpp
Porter, M. E. (2016). The five competitive forces that shape strategy [Video] | Transcript. Retrieved from https://www.youtube.com/watch?v=OI55hqfuEtI
The post 9 Strategic Process and Analysis Rodrick Fields John Thorne Strategic Process and appeared first on PapersSpot.
