Strategic Management and Strategic Competitiveness - Research Paper Example

However, in the past few years, the company has implemented different changes in its business processes to offer its products. The top management of Amazon.com with the support of its founder Jeff Bezos, separated the trading platforms with on geographical grounds such that individual trading sites are developed to offer the products and services for consumers of UK, USA, Canada, Japan, China, Germany, France, Italy and other countries. There are two main reasons for bringing such global change in its business operations.

Firstly, Amazon.com targeted the specific consumer needs for each geographical territory and aimed at catering the local customers through local platforms i.e. a decentralized platform. Secondly, the company managed to invest in the logistics and operations in different parts of the world on local basis. This means that the company has established the local supply chain in different countries and the products are not shipped from its global warehouses to a customer in a particular country, rather local orders are fulfilled through using local warehouses and logistics.

Industrial Organization Model and Resource based Model Industrial organization model reflects that the external environment of any business poses a large influence upon the earnings of an organization as compared to the internal environment of any business (Johnson, Scholes, & Whittington, 2008). Amazon.com initially opted a business of e-retailing the books and similar reading content material and kept polishing this product line. However, this product line turned out to be a niche market for Amazon.

com, as the company’s earnings remained stuck because several other online book retailers saturated this market as well as the market itself lost its momentum and showed a declining phase. Realizing this phase at an early stage, the top management of Amazon.com decided to enter into new product lines while staying as an e-retailer. New product lines provided Amazon.com a better opportunity to penetrate into other industries rather quickly as well as earning above average returns because of having an already established supply chain.

From the resource based model perspective, the resources, which Amazon.com currently has, are quite capable of providing it the competitive advantage (Pitts & Lei, 2006). The most promising and trustworthy resource is the logistics and supply chain infrastructure. The company has developed its logistic infrastructure across the world on local basis such that if the specific consumer of a country orders a product, that product can be delivered through local supply chain within the least amount of time.

Another resource which acts as a competence to Amazon.com is its highly dependable and secure Web-based IT infrastructure which ensures the safe transactions and privacy elements for the customers and eliminates the likelihood of system failure. Impact of Mission and Vision Statement Following are the mission and vision statements of Amazon.com: Mission Statement “We seek to be Earth’s most customer-centric company for four primary customer sets: consumers, sellers, enterprises, and content creators.

” (Amazon.com, 2012). The above mission statement of Amazon.com provides the company a room for several different areas such as the company has not confined its purpose of business operations to a specific