services? What steps should it take to ensure that the digitally streamed media—and mobile platforms to access that media—become a major contributor to the company’s overall performance? Within the last couple decades, Amazon has proven to the world that they are here to stay. Through their low operations costs, network effects and sharp focus on customer satisfaction, they have sustained a competitive level their conventional rivals are unable to match. Consequently, these attributes would result in additional gains per market share in later years. However, it does not make much sense for Amazon to remain competing in online retailing of cloud-based computing services as the personal media player business could see a future divestment. What strategic issues confront Amazon in 2015? What market or internal circumstances should most concern Jeff Bezos and the company’s senior leadership team? The most prevailing strategy issue Amazon experiences is trying to implement business models across several areas. While the company attempts to grow continuously, it became difficult to distinguish which products and services need to be eliminated, since the income derived from not so popular products are with close range with each other. However, with respect to lessening unpopular products, doing so could also have a negative impact on the company’s bottom line, an effect no organization wants to face.
AMAZON.COM’S BUSINESS MODEL AND ITS EVOLUTION 8 What recommendations would you make to Amazon to address the strategic issues confronting it in 2015 and sustain its impressive growth in revenues and maintain its profitability? While society is gearing towards replacing analog media with digital components such as smart phones and other handheld computer instruments, my recommendations for Amazon would include being more selective when allocating capital into Original Equipment Manufactured (OEM) devices. The company should also maintain its current route with respect to new acquisitions and investments as pertaining to streaming, as well as small business customers by presenting them with high valued services. Amazon should also avoid being enticed of competing with social media sites or search engines. Another issue is remaining in the forefront of competitors like Alibaba, Costco, Wal-Mart and Target, by introducing entertainment content, directly linked to customer networks. References
AMAZON.COM’S BUSINESS MODEL AND ITS EVOLUTION 9 Dybek, M. (2020, February 1). Amazon.com Inc. (NASDAQ:AMZN): Income Statement. Retrieved from - Statement/Income-Statement Gregory, L. (2019, February 13). Amazon.com Inc.'s Mission Statement & Vision Statement (An Analysis). Retrieved from - statement-analysis MSG Management Study Guide. (n.d.). Retrieved from
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