Essay on Business Objective of Amazon

Business objectives of the company: general information
with the common business objectives of an average company that operates on the global scale. Among the possible objectives usually the following may be defined as the major ones:
• Profit maximizing
• Market share growth (customer creation)
• Regular innovations
• Production and supply of quality goods and services
• Effective use of available resources
• Effective management system development
• Social and psychological satisfaction of employees
• Development of human resources
• Contribution to the country’s revenue
• Make competitive goods available globally

Amazon.com: introduction

Amazon.com is a leading multinational web commerce company with headquarters in Seattle, Washington. This company is the largest online retailer in the US, it’s an out-of-reach leader of web commerce trade category. It operates in two major market segments: North America and International. At first, Amazon was an online bookstore, started by its founder Jeff Bezos in 1995, but later the company diversified. The number of it’s full time employees is 33,700

Nowadays among the Amazon’s product lines are: books, music CDs, videotapes and DVDs, software, consumer electronics, kitchen items, tools, lawn and garden items, toys & games, baby products, apparel, sporting goods, gourmet food, jewelry, watches, health and personal-care items, beauty products, musical instruments, clothing, industrial & scientific supplies, and groceries.

Amazon’s vision is to be earth’s most customer centric company, to build a place where people can come to find and discover anything they might want to buy online. By giving customers more of what they want: low prices, vast selection, and convenience; Amazon.com continues to grow and evolve as a world-class e-commerce platform.

In my opinion, the company is following its mission. It’s positioned as global customer-centric company where virtually anything that people are looking for can be successfully found and ordered.

It should be emphasized that despite the high level of diversity, the company has kept its strong brand name. (Amazon’s Growth to Continue, 2010, Oct. 22)

SWOT analysis of Amazon.com

Among the strengths of Amazon Company following elements can be defined:
Profitability;
Recognizable brand image;
Customer’s loyalty to the brand;
Constant innovation (it’s hard for giant companies to launch and sell new products, but Amazon is doing great);
Smart product diversification;
Infrastructure;
– Leading position in on-line retailing of media products ;
– Strong customer relationship management system (CRM), which helps customer offering specific range of items, based on his/her previous Amazon buying experience.
In regards to Amazon’s weaknesses, next elements can be named:
– New product categories/businesses development risks;
– Free shipping can cause a financial losses in some cases;
– Dependence on external delivery companies may cause problems with customer services
Among the opportunities for the Amazon I can indicate the following:
– Amazon’s growth story. According to the web commerce analysts, the increase of web commerce in US by 2015 will be huge and the raise will be approx. 43%. The other forecast is that three-quarters of the web users will purchase the products online. And we have to mention prognoses of enormous growth in global markets; therefore, company invests in European and Asian regions; (Taulli T., Mar. 30, 2011)
– Joint ventures development, successful cooperation with partnering companies (for example, Marks and Spencer);
– New collaborations with the public sector (libraries, etc.);
– Exclusive author rights purchasing, thanks to specialist relationships with publishing houses
And finally, the threats for the Amazon are:

– Managing company’s growth. It’s rather a potential risk that may be caused by problems with new businesses, acquisitions and investments into foreign markets. So far everything is good for Amazon, but the situation may change;
– Secondly, despite of Amazon’s strong innovation culture, it faces challenges in keeping up with new markets and approaches;
– The next potential risk is a sales tax. Sales tax is not collected by Amazon, that is one of the major competitive advantages; therefore it helps the company to maintain its lower prices (it’s an important factor, because Amazon’s margins are at the very low level now). There is chance of legislation change (charge might be imposed on online affiliates, Amazon’s partners); (Taulli T., Mar. 30, 2011)
– Potential competitors entry and difficulties in differentiating the brand from its competitors are risks as well;
– Developing on-line facilities of traditional trade companies;
– Increasing transportation costs

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