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Strategic Business Report - Essay Example

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2) Is the Amazon business model the right model looking ahead for the next five years or more Based on the analysis already undertaken what future strategy would you recommend for the chosen SBU and for the corporation.
1.1 Introduction: Amazon.com is a Fortune 500 company formed in the year 1994 by Jeff Bezos…
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Strategic Business Report

The company over the initial years has relentlessly focused on obtaining scale of operations which it believes will be the foundation for its future profitable growth. It has been to such an extent that it has sacrificed profits for growth during initial phase and posted its first profit only in the year 2003, nearly after nine years of operations. The strategy followed is a customer focused approach which the company believes will help it attain the scale it needs for long term success.
1.2.1 Product: Amazon .com sells operates in North America as well as internationally through retail websites which include amazon.com, amazon.ca, amazon.de, amazon.fr, amazon.co.jp, amazon.co.uk, shopbop.com, endless.com, and the Joyo Amazon Web sites at joyo.cn and amazon.cn.. It sells its product in over 200 countries. The product range which its sources and sells are books; electronics and computers; toys, kids, and baby; sports and outdoors; movies, music, and games; home and garden; apparel, shoes, and jewelry; tools, auto, and industrial; digital downloads; grocery; and health. Amazon.com, Inc. operates retail Web sites, as well as provides programs that enable third parties to sell their products on its Web sites. It enables customers to use single click technology to complete purchase of all sellers and check out, making purchase easy and convenient. The company's Amazon Enterprise Solutions offer sellers e-commerce expertise, technology, and operational infrastructure to enable e-commerce businesses operating under their own brand name and Web site address. It also offers Amazon Web Services, which provide access to technology infrastructure that developers can use to enable virtually various types of businesses.
1.2.2 Price: The unique offering of Amazon.com is its ability to offer products at a price lower than any other retailer, because of its unique model (no expensive retail space).
1.2.3 Promotion: MillionAmazon.com has steadily increased its spending on advertising and promotion and brand building. In 2005 it valued its goodwill as $159 million. Amazons unique brand image as a top web based retail company built right from day one, is what drives the company's growth.
1.2.4: Place/ Supply chain management: Strong delivery system is one of its strong points of Amazon.com. To manage logistics it believes in having strong analysis based systems. It uses mathematical modeling and algorithms extensively to forecast, match delivery centres, ... Read More
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