Question
Amazon, founded as an online retailer in 1994, bas expended into streaming cloud computing, content creation, and groceries, remaining a hugely successful business that operates
Amazon, founded as an online retailer in 1994, bas expended into streaming cloud computing, content creation, and groceries, remaining a hugely successful business that operates in a network economy, This expansion sparks questions about whether they
stretching too far and blurring their identity, being both a video producer and a online retailer while venturing into movie production, Globaly, Amazon boosts 100
million Prime subscribers, who, studies reveal, make three to four times more purchases ton non-Prime users. Prime customers often bypass price comparisons. In today's world competitive advantage comes from connecting products and connecting customers. The Kindle and eBooks is an example of connecting products.
They effortlessly adapt their supply chain to any new busines directions. In 2007 Amazons purchase of Whole Foods, seemed counterintuitive, given its online roots. Food is a very low
margin category, and Amazon is a technology company , Amazon swiftly evolved from an
online retailer to a market place allowing third party sellers. Unlike Walmart, Amazon welcomes extermal sellers, oftering customers a variety of product. Amazon gets commission without inventory costs: Moreover, Amazon is doing al it can to reduce click to-door time by exercising full control of the supply chain and mastering the last-mile delivery the most challenging aspect of fulfilment and delivering total customer satisfaction in online of business. Jeff Bezoz is certainly very customer obsessed. He always sys: "You start with the customer and work backwards."
Amazon had always been a consumer platform but now they are in a business to business play with their new web services division." There was a demand for tis capblity but part of it was opportunistic too, professor Sunil Gupta stated. Unlike Apple profiting from devices, Amazon is not making huge money there. Moreover, their move into streaming competes suddenly and directly with Netflix. In some ways they are following the consumers behaviour , shiting towards streaming, albeit not as pioneer like Netflix. Amazon begin by distributing third-party content but expanded to creating movies through Amazon Studios and the competition now becomes Hollywood instead of Walmart.
Q1: Using theory from your Strategy and Change Management unit, discuss the theoretical foundations of Amazon's strategy presented in the case study 135 marks) 150 words
students could chose to apply multiple frameworks/ models (for example prescriptive vs emergent, inside out outside, contingency perspective, resource allocation, external context, Ansof Porter's 5F, el.)
Q2: Amazon is constantly changing and widening out is business model. Using the theoretical frameworks describe what change management models Amazon should consider to ensure the success of to their evolving business strategy? (35 marks) 150 words
For lecturers: students could chose to apply multiple frameworks/ models such as Lewin's change management model, TS framework, Kolter's change model etc
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