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Strategy at Amazon

In: Business and Management

Submitted By Fabai12345
Words 5579
Pages 23
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Loughborough University Business School
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Strategic Management Consultancy Report
Aleksandr Karev (A816441)

Abstract
The purpose of this report is to analyse the strategic position of Amazon and determine any competitive advantages held by the company. Beginning with a discussion of Amazon’s industry and review on the political, economic, social, and technological environments in which the company operates, the report than narrows to focus on Michael Porter’s Five Forces: threat of new competition, threat of substitutes, bargaining power of customers, bargaining power of suppliers and intensity of competitive rivalry. The report continues with a thorough SWOT analysis of the company and follows on to the analysis of the company’s internal environment. Resource base view together with value chain analysis has been chosen to analyse Amazon’s internal environment.

Introduction
Company Overview
Jeffrey Bezos started Amazon in 1994, after identifying that Internet usage was growing at a rate of 2,300 per cent per year (Emerland, 2002). Working from a 400-square foot office in Seattle, Jeffrey launched Amazon in July 1995. By the end of 1996, Amazon has posted sales of over $16 million and served about 180,000 customer accounts, which made it one of the most successful Web retailers in the world (Galante, 1997). Amazon has continued to expand its customer base, and sales revenues have increased every year. The firm’s revenues increased from $16 million in 1996 to $41.1 billion in 2011 (Bloomberg, 2012). Today, Amazon offers perhaps the broadest range of products worldwide.

External Analysis
The external environment is referred to as the macro-environment. This includes the broad environmental factors, which will affect organisations at different levels. It

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