Order Number |
636738393092 |
Type of Project |
ESSAY |
Writer Level |
PHD VERIFIED |
Format |
APA |
Academic Sources |
10 |
Page Count |
3-12 PAGES |
Founded in 1994 as an online bookstore, Amazon has grown to become one of the world’s leading online retailers and founding fathers of online retailing. Today, the organization offers a wide range of products and services via its three segments namely, North America, Amazon Web Services, and International.
Although the company experiences immense competition from other large corporations such as eBay and Noble and Barnes, it has grown to become the second company in the world to have a value of $1 trillion after Apple Incorporation. The success is because of its customer centric mission statement, and concentric diversification strategy. The organization can also link its success to its strategic partnerships and acquisitions of numerous organizations, and Jeff Bezo’s style of leadership.
In fact, external factor evaluation shows that Amazon.com has a combined weighted external factor evaluation score of 2.72, which is higher than the average value of 2.5. Internal factor evaluation shows that the company has a total weighted score of 3.10, which is also higher than the average value of 2.5.
An analysis of the company’s competitive position shows it has a total weighted score of 3.60, which is higher than Noble and Barnes’ total value of 3.25 but lower than eBay’s value of 3.70. Amazon has a strong internal position and an average external position, which places the company into cell IV of IE matrix.
Most importantly, the company’s none of the company’s segments is a question mark or a dog. Whereas Amazon Web Services and International are stars, the North American segment is a cash cow.
From the financial performance perspective, Amazon is in a better position to meet its short-term financial obligations but less profitable. The organization is also insolvent and does not effectively utilize its total assets to generate revenues. Nonetheless, the company’s total revenue is expected to increase by 13.44 percent to at least $318 billion by the year 2022.
This would lead to an increase in net income by more than $2 billion over the period. The SPACE vector for the company is in the aggressive quadrant based on its 1.65 long term debt to equity ratio, intense competition in the e-retail industry, and dominant market share.
Based on Amazon’s strategic management analysis it is recommended that the company should pursue market penetration, market development, and product development strategies to exploit its opportunities. The organization should also enhance its technological strategies and employee relations.