Customer loyalty has been recorded to be on the rise due to high customer

Customer loyalty has been recorded to be on the rise

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be on the rise due to high customer satisfaction. Moreover the application of the above describedstrategy has seen the company experience a steady increase in its profits from the year 2011. Thehybrid strategy ensures the company enhances the satisfaction of customers while at the sametime recording profits. The strategy has the potency to be effectively employed by other competitors if theychange the primary focus of their operation. The success of the hybrid strategy lies in the abilityof the implementing strategy to enhance a balance between customer satisfaction andproductivity. As evident in the case most of the competitors of Amazon have a focus on6
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Running Header:AMAZON.COM CASE ANALYSISenhancing productivity level. Innovation has proved a key factor in the sustainment of Amazon’sstrategy. For instance the company has a large number of credit card compared to the likes ofWal-Mart and Apple Company. Porter identifies three generic strategies that a business entity may use to enhancecompetitive advantage. These strategies could either be lower cost strategy, differentiated or thefocus strategy (porter 1990). An analysis of the above three strategies alongside the operations ofAmazon lead to the realization that the company is using a hybrid of the differentiation and thelower cost strategy to ascertain its dominance in the market. This strategy is highly affected bythe different cycles of the company. For instance when the company is experiencing a tougheconomic time it becomes difficult for it to offer lower prices than the competitors and as a resultit affects its market share.SPECIFIC STRATEGY(S)Ensuring Coherence in Strategic Direction Ensuring unity of direction is key to the success of every organization. Amazon.com hasadvanced various mechanisms towards establishing coherence in the strategic direction. Forinstance, the company emphasizes a keen focus on its strategy, the capabilities as well as its cost.The company has established clear ways of building required capabilities. As a result Amazonhas been able to establish its most suitable market of operation. The company emphasizeseffective allocation of costs to the most important capabilities as well as streamlining all areas toensure they support the success of its strategy. The company focuses more on its abilities ratherthan its fixed costs. All players within the organization are made to understand the most effectiveapproach to the market and how to add value to the customers. One important observation is that7
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Running Header:AMAZON.COM CASE ANALYSISAmazon works on integrating its capabilities into a coherent system and as a result the companyenhances the development of mutually reinforcing capabilitiesStrategic Alliances and Joint Ventures Strategic alliances are key in enhancing the competitive advantage of Amazon Company. Forinstance, the company has over time established alliances with multinational companies such asProcter and Gamble.
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  • Spring '15
  • Porter generic strategies, Jeff Bezos, Amazon Company, Amazon.com case

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