Paper Example on Amazon's Strategy for Growth

Introduction

Today, in the corporate world, companies commence with a subtle and elegant strategy that gives them not only a competitive edge in their businesses but also a significant impact on modern society. A corporation or an enterprise can have inclusion and diversity that can extend beyond their manufacturing or headquarter facilities. Amazon's supply chain process is one of the world's best supply chains and online shopping platform (Cohan, 2017). Amazon, since its inclusion, has observed and maintained a high standard of supply chain management driven with grand strategies; concentration, market, and product developments to achieve the invaluable business standard in the global market. Therefore, this paper underscores critical discussion on Amazon's business model and the three grand strategies; concentration, product, and market development.

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Amazon’s Model and Evaluation

Amazon is an online business platform and retail suited with effective and well-defined supply chain system. The company displays an exemplary and unparalleled e-commerce business as the best business websites in the online retail industry (Grant, & Jordan, 2015). The company's supply chain is digitally driven; an order from Client on the company's website is received by order-management system, contacts the inventory, which then communicates to warehouse management systems to locate a distribution center for the order in less than a minute. The product is then send to client through faster and safe distribution channels.

The most influential forces in this model include competition or competitive rivalry, substitution or threats of substitutes and customers or bargaining power of suppliers. The week factors include the bargaining power of suppliers and threats of new entrants. The forces are managed by the company's unique strategies for growth, concentration, market development, and product development.

Concentration

Amazon has endeavored to maintain good company reputation, excellent customer experience, safeguarding the Amazon Empire, extended growth potential as a way of showing distinct competencies over the years. Moreover, the company has fostered a friendly customer survive, loyalty and customer retention as their pillars of customer service culture. The company believes that excellent customer relation leads to repeat buyer, they attract customers, and those of their competitors' through prompt delivery, low prices, exemplary customer attention, as well as growing an array of products and services.

Moreover, the company has also increased their clientele base by overseeing relentless innovative ways to improve customer service and experience such as fast and reliable fulfillment, providing easy-to-use functionalities and timely customer service. In the day-to-day operation in their supply chain strategies and marketing, Amazon has displayed superior customer responsiveness as well as excellent quality in service delivery hence the success of the company.

Amazon is capable of shipping the ordered product faster to their destination, as well as offering excellent customer service thus this gives them an edge over their compactors eBay, jet, and craigslist. The company's capability of being innovative and making accelerated expansion in both geographic positions and services is a factor for its success

Market Development

Amazon's marketing mix is one of its kind, just by being an online business; their products are open and available to all people globally at the click of a button. The unique ideas, resources, and capabilities the company beholds, despite the international trade challenges and internal business environment, have perpetuated the company's great success in the global market. The Company's primary marketing strategy is via their main website. They also employ other online marketing strategies such as sponsored search, Search Engine Optimization (SEO) Associate programs, portal advertising, and email marketing campaigns. Amazon also uses social media and mass media marketing strategy such as the as of TV and social media platforms such as Facebook (Strader, 2011).

The buying power of the customer at times is influenced by the emotions the clients feel from the service provider or the seller. Amazon as a corporation has leveraged on this potential marketing strategy by displaying high values future in the value creation model. In its marketing mix, the company has endeavored to show high reputational values such as trust, simplicity, and responsiveness to their target groups. Furthermore, Amazon has been leading in organizing high values sales and promotions amounting to the excellent customer experience.

Product Development

Product development has been indeed the backboard of the Amazon's immense growth since it falls squarely on their core values of "Customer Obsession" where the company thinks from the customer's perspective. The company operates under a unique philosophy called "working backward" which makes the product development more customer-centric (In Golder et al., 2018).

The introduction of a new product using the unique concept "working Backwards" operates in well-defined procedural steps from the press release to a frequently asked question document, to customer experience to the user manual. Subsequently, the result from the process informs the product development team on what kind of product the company would build.

The strategy of product development or new product inclusion in Amazon is top-notch due to the reduced cycle time from concept to delivery, which initially entailed discussions brainstorming and arguments. Therefore, the strategy centralizes the customer and perpetuates clarity and simplicity throughout the development process thus the growth of the company (Strader, 2011).

Conclusion

In conclusion, analysis of Amazon's supply chain store and strategies for growth is an excellent examination and a case study of the other company dealing in the field. The milestone achievements Amazon has shown in the field of online shopping and supply chain is incontrovertible hence it stands out to be the world best platform in supply chain diversity. Despite the weaknesses and challenges, the company has had a solid competitive advantage in the corporate world due to the immense online business strategy.

References

Cohan, P. S. (2017). Disciplined growth strategies: Insights from the growth trajectories of successful and unsuccessful companies.Grant, R. M., & Jordan, J. (2015). Foundations of strategy. Chichester: Wiley.

In Golder, P. N., & In Mitra, D. (2018). Handbook of research on new product development. Cheltenham, UK; Northampton, MA: Edward Elgar Publishing.

Strader, T. J. (2011). Digital product management, technology, and practice: Interdisciplinary perspectives. Hershey, PA: Business Science Reference.Amazon.com, Inc, https://www.amazon.com/