Amazon

Strategic Plan – Amazon

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Table of Contents

I. Executive Summary…………………………………………………………………………3

II. Leadership and HRM………………………………………………………………………3

III. Recommended Leadership Structure………………………………………………………3

IV. Responsibilities of the Individual Leadership Position……………………………………4

i. President and CEO………………………………………………………………………….4

ii. VP of Marketing…………………………………………………………………………….4

iii. VP of Sales…………………………………………………………………………………4

iv. VP of Finance………………………………………………………………………………4

v. VP of Human Resources…………………………………………………………………….5

vi. VP of Operations…………………………………………………………………………….5

V. Proposed Decision-Making Process………………………………………………..………5

VI. Leadership Style……………………………………………………………………………6

VII. Job Description and Job Specification of the CEO……………………………………….7

VIII. Salaries and Benefits……………………………………………………………………..8

IX. The Interview Questions……………………………………………………………………9

i. President and CEO…………………………………………………………………………..9

ii. VP of Marketing……………………………………………………………………………..9

iii. VP of Sales………………………………………………………………………………….9

iv. VP of Finance………………………………………………………………………………10

v. VP of Human Resources…………………………………………………………………….10

vi. VP of Operations……………………………………………………………………………11

X. Mission and Vision………………………………………………………………………….11

XI. SWOT Analysis………………………………………………………………………………………………..……12

i. External Resources (Opportunities/Threats)…….……………………………………………13

ii. Internal Resources (Strengths/Weaknesses)…………………………………………………13

iii. Analysis of the Implications of the SWOT…………………………………………………..14

XII. The Problems………………………………………………………………………………14

XIII. PESTLE Analysis…………………………………………………………………………15

i. Political Factors………………………………………………………………………………15

ii. Economic Factors…………………………………………………………………………….15

iii. Social Factors………………………………………………………………………………..16

iv. Technological Factors……………………………………………………………………….16

v. Legal Factors…………………………………………………………………………………16

vi. Environmental Factors………………………………………………………………………16

XIV. Porter’s 5 Forces………………………………………………………………………….16

XV. Analysis of Amazon’s Strategic Capabilities according to VRIO…………………………16

XVI. Recommended Strategic Objectives………………………………………………………17

XVII. Implementation Plan……………………………………………………………………..17

XVIII. Conclusion………………………………………………………………………………18

XX. References………………………………………………………………………………….20

Executive Summary

Amazon, a leading online retailer, is doing well in its sector. The company has a chance of improving its operations by taking initiatives that would alter its strategic plan, an exercise that require satisfactory preparation and deliberation [1]. More effort need to be invested in how the group eradicates the hurdles present in the macro environment that impact how it conducts the value chain operations [2]. The company should also emphasize on appropriate marketing techniques that would increase consumer awareness and increase their likelihood to buy. The team should also increase its affiliation with other firms to expand its portfolio. It needs to rely on effective strategic models that provide the chance to achieve the targeted aspirations. Whereas Amazon is a highly competitive retailer, advancing its core structures presents an opportunity to record more impressive results.

The group should pay considerable attention to advance its strategic plan because it is only through such adjustments that it would gain competitive advantage. Competition is stiff in the marketplace and firms that are unable to put up with the rapid changes may not be able to reach out to consumers and urge them to purchase the organization’s products and services. Nonetheless, it requires considerable planning and much focus on adopt and implement a strategic plan that would improve overall outcome.

Leadership and HRM

Recommended Leadership Structure

Being one of the leading retailers globally, Amazon requires an appropriate leadership structure that would enable it handle its operations in the most effective manner. Presently, the company has an Executive Chair (Jeffrey Bezos), followed by the President and Chief Executive Officer (Andy Jassy) [3]. Below these two top-most leaders are Vice Presidents, Directors, Heads of Departments, Managing and General Directors, and Senior Managers [3]. However, the group has a chance of improving its leadership structure by adopting an alternative model that is more comprehensive. Moreover, having an improved management structure give employees more precision and help handle prospects more suitably [4]. Additionally, an enhanced leadership structure offers a chance to come up with better decisions and improve consistency. It is important to make changes because concerns exist that the current leadership fails to motivate workers and focus on particular needs. The following leadership structure would best suit the company

Current leadership

Proposed Leadership Structure

Based on the recommended structure, the company will have to do away with the position of Executive Chair and retain the position of the President and CEO as the top-most leader at the organization. Below the President and CEO should be various Vice Presidents accountable for several main operational areas such as marketing, sales, finance, HR, and operations [5]. Mangers in the various key departments will serve under the Vice Presidents and will manage vital activities. Employees come after the managers and they perform general roles and the workplace.

Responsibilities of the Individual Leadership Position

To create a prosperous work plan and be as impactful as the leading online retailer globally, it is essential to rely on an effective management. The structure is likely to change with time, and members may hold different roles until the firm expands and can bring in more stakeholders. Their duties and responsibilities is what contributes toward the company’s growth as well as toward forming more attractive services and creating more inventive concepts [6]. The leaders in the various positions play different roles and responsibilities as outlined below;

President and CEO

The one at this position is deemed the highest-ranking officer in the firm. The President and CEO should take charge of operations management and strategy formation. The leader should instill self-confidence and trust among all workers, especially those conferred with the responsibility of executing the plan [2]. He should be accountable for creating and pursuing the business’s mission and vision, as well as handling the financial success of the company [3]. The President and CEO should be in charge of directing and delegating organizational agendas, fostering profitability, manage the firm’s structure, and facilitate communication and engagement with the Board of Directors.

VP of Marketing

The Vice President of Marketing should be in charge for managing all areas of the company’s operations and campaigns. The CP of Marketing leads an existing group of marketing specialists answerable for navigating the group’s promotional activities [4]. The leader is in charge of creating and executing innovative marketing plans to profitably improve revenue and broaden the brand. In addition, the VP is responsible for strategic brand management, set marketing goals and objectives, performs market research, review budgetary allocations, and enact measures to uphold a suitable image of the firm.  

VP of Sales

The VP of sales is in charge of and directs the sales departments and teams to attain or surpass sales revenue and add to the general profitability of the establishment. The officer is also in charge of global, regional, and domestic sales. He will coordinate with the marketing teams to create online and print marketing materials for the firm’s services and products. The VP is responsible for identifying the areas where advancements can be achieved and creating sales strategies and plans to attain sales objectives. Also part of the leader’s role is to recruit and hire sales staff and creating training plans and programs, maintaining sales teams and managing sales operations, and handling, and outlining the company’s sales budgets.

VP of Finance

Typically, the VP of Finance oversees the everyday financial management of the company. Key roles and responsibilities encompass managing investment strategies and risk, as well as tracking the general financial health of the organization. The one in charge in this areas and who should have robust skills on financial management is responsible for creating and reporting accounting reports and analysis, and for performing analysis of market trends [5]. Besides, operations in this area is likely to improve if the VP takes charge of cash flow management and investment planning. The officer in this division provides vital guidance in creating and implementing a budgetary strategy.

VP of Human Resources

The HR department plays fundamental functions at the workplace. Consequently, the leader in this division performs a variety of roles that helps to achieve the targeted objectives. The VP in charge of this area is responsible for creating and recommending HRM practices, policies, and strategies that encourage worker performance, motivation, competence, and dedication. The leader should also take responsibility of offering policy guidance to senior management concerning the acquisition, development, reward, sustenance, and exit of the company’s HR so as to improve the organizational prestige as an ideal and principled employer [6].

VP of Operations

The VP of Operations plays many essential roles to promote the success of Amazon and to make it more competitive. The leader directs, oversees, coordinates, and plans operations at the company. These functions encourage development and execution of appropriate activities and cost-effective structures to achieve present and future desires of the retailer. The leader in this capacity who must be educated and experienced helps come up with key strategic decisions, which ensure the firm’s operational procedures are lucrative and sustainable, while also giving guidance to the managers under their division.

Proposed Decision-Making Process

Effective decision-making presents an opportunity to achieve efficiency in organizational operations, which requires the firm to improve its approach in the way it comes up with choices. Decision-making is the act of making decisions by recognizing the most appropriate decision, collecting essential data, and assessing conceivable substitutes [7]. Proof affirms that effective decision making saves resources and time, shapes and cultivates the respect of others in the workstation, enhance productivity, and averts possible mistakes and dangers [8]. Other benefits of making good decisions based on reliable models include increased engagement from all workers, improvement in professional development, enhanced commitment, employees’ satisfaction, improved delegation of operations, decreased errors, and stronger sense of feeling among workers [9]. Thus, the multinational corporation needs to consider ways of improving its decision-making process for better performance. Presently, the organizational founder and the Board of Directors is responsible for decision-making at the company. The handle each circumstance uniquely and give judgment based on urgency, impact on operations, and evidence among other influencing factors.

Using a step-by-step decision-making model can allow Amazon make more thoughtful and deliberate choices by organizing applicable information and describing and assessing alternatives. The method intensifies the likelihood that the decision makers will select the most appropriate option possible. Consequently, relying on a seven-phase mode to effective decision making presents an opportunity for the online retailer to make significant strides in this area. The initial stage is to identify one or more decisions by clearly defining their nature [10]. It is essential to pay considerable attention to this phase because it determines the outcome of the whole procedure. The next phase is to collect the necessary information to support the decision. The firm in this case may be forced to perform both internal and external search to gather relevant information. Information is internal when the firm seeks it through a process of self-assessment and external when it comes from other people, published content, or online sources [10]. The third step is to identify possible alternatives. As the team in charge of decision-making gathers relevant information, it will possibly identify several probable routes of action, or options. The fourth stage is to weigh the selected decision by imagining what it would be like if the team worked towards implementing each of the alternatives to the final stage. The body responsible for decision-making should assess whether the need recognized in the first step would be achieved or resolved by using each identified options. The fifth step that would improve how the firm makes decision is to choose among the options by selecting what adequately meets the group’s desires and aspirations. The final approach would be to take action by starting to execute the alternatives chosen in stage five. The final step is to assess the decision and its implications. In this final stage, the body in charge of decision-making considers the outcomes of the decision and assess whether it is has meet the desires listed in the first step.  

Leadership Style

Bezos and other leaders at Amazon are widely perceived as being transformational. It means that the leaders motivate and inspire affiliates to achieve more than they think they can attain. For example, Bezos makes sure that every person in his team is dedicated to the organizational vision. The leadership approach that the leaders of Amazon embrace fosters change in social systems and individuals. In its ideal form, transformative leadership encourages value and fosters positive change in the followers with the ultimate goal of turning followers into leaders. The leadership approach is equally effective because it offers intellectual stimulation, it encourages individual consideration, offers inspirational encouragement, and because it gives idealized influence [11]. Furthermore, the leaders while adhering to the transformational approach try to be integral in everything that they do, have compassion, and visionary, and try to be as truthful as possible in everything that they do [11]. However, it is imperative to acknowledge that some leaders adopt other leadership approaches according to what suit their desires.

A suitable leadership approach that would facilitate operations at the workplace, and which is likely to improve how individual leaders and employees perform is democratic leadership. According to Korejan and Shahbazi democratic leadership, also called shared or participative leadership, is a leadership approach in which followers or members take a participative approach in the process of making decisions [12]. This form of leadership is applicable to any firm, from the government, learning institutions, to private institutions [12]. Embracing democratic leadership provides an opportunity to enjoy a wide range of benefits. Some of the reasons why Amazon in its attempts to improve its operations should embrace the democratic leadership approach is that the approach encourages employee engagement, offers numerous opportunities for brainstorming, promotes teamwork, and provides a chance to offer a wide range of ideas. More fundamentally, Amazon leaders should consider democracy because the approach improves job satisfaction, and allows members to make individual choices that they think will advance their own and team outcome [11]. However, the leaders while deploying the leadership method should consider some of the potential limitations associated with it. For example, evidence suggest that the democratic leadership can be disadvantageous because it could foster negative emotions, it can result in procrastination, and may take much time before arriving at a consensus [12]. Consequently, it is essential to pay considerable attention to the leadership approach the company selects to move on steadily. A tip that Amazon can use to advance its operations would be to fuse two or more leadership style and be able to interchange them accordingly depending on the prevailing conditions.

There is need for an effective leadership style because the approach a leader chooses contribute significantly in determining organizational performance. The group may have to consider alternative forms that are equally effective because effective leadership provides an opportunity to make faster decisions, and increases the likelihood of creating multiple business locations [12]. In addition, the company needs to consider possible way of improving its leadership because effective leaders foster increased employee outcome, and eradicate duplication of work [3]. Moreover, being wise enough to adopt equally suitable leadership structures eliminate possible cases of employee fights and develop communication at the workplace [13]. Consequently, the leaders at Amazon can improve how the facility serves by being more democratic in their activities. Thus, leaders should take time to find other management tactics that would allow the firm to continue with its activities nonstop [11, 12].

Job Description and Job Specification of the CEO

Position: President and CEO

Location: Seattle, Washington, the U.S.

Reports to: The Board of Directors

Experience and Competence

The President and CEO serves as the top-most officer at the organization and he is in charge of the success of the firm. The position requires advanced competence because of the many responsibilities one plays in this capacity [15]. Consequently, it is recommended that the one serving in this position has at least ten years of experience and also a progressive prosperous practice in business management.

Qualification

The leader in this position must have a minimum achievement of a bachelor’s degree. The one in this capacity must also have extensive industry and business strategy [16]. Competition is stiff for such high-ranked positions, and preference is usually given to those with a Master’s of Business Administration (MBA).

Skills, abilities and knowledge

Skills and Abilities

• Decisiveness
• Innovative
• Growth mindset
• Teamwork
• Accountable
• Effective communication
• Ethics
• Integral
• Patient
• Critical thinker
• Ability to solve problems
• Effective decision-making skills

Knowledge

• Management
• Economics
• Accounting
• Finance
• Business
• Marketing

Salaries and Benefits

The salaries and benefits employees get play fundamental roles in determining their performance. Well-paid workers have a chance of performing well, and are more likely be committed to their operations. Lazear argues that a well-paying organizational culture will make workers more likely to remain at their jobs for many years [17]. The longer an employee stays with the company, the better they become familiar with the systems, mission, and organizational norms. The opportunity can turn them into more productive individuals who are stronger in all that they do, and can make stronger bonds at the workplace. Lazear further informs that an employee is likely to work harder and perform to his capability when they earn an impressive salary [15]. Such a workers feels motivated to perform well, because he/she wants to please their employer to retain their work or position. Presently, the team leaders at Amazon get an average salary ranging from $24,533-$66,585 every year. However, employees such as Software Development Engineer, Data Engineer, Scientist, and Software Development Manager get relatively high as follows, $122,722, $130,021, $122,855, and $165,357, respectively per annum [1]. Nonetheless, slightly increasing what top leaders receive in terms of salaries could increase their likelihood for performing better. However, the group must comprehend that the duty to offer more compensation to workers come at a cost, which requires the organization to prepare sufficiently to attain the best result while avoiding possible disturbances that could undermine the firm financially [18, 1]. Hence, the following payments would mostly suit the top leaders;

President and CEO – $185,000

VP of Marketing – $170,000

VP of Sales – $170,000
VP of Finance – $170,000

VP of Human Resources – $170,000

VP of Operations – $170,000

In addition to increasing pay with the motive of improving the performance of individual organizational leaders, it is essential to pay considerable attention to offering benefits that would make leaders and employees feel more committed to their duties. The company seems to acknowledge the merits of offering benefits to its workers and already has a plan to facilitate the activities pertaining to motivating employees through appropriate benefits [14]. The benefits and perks at Amazon go a long way into encouraging workers to be more competent and committed to their duties. Amazon informs that in addition to offering an average starting pay of USD 18 each hour – more than doubling federal limits – the retailer provides a range of impressive benefits that support members of staff and family members eligible for particular benefits. The comprehensive benefits start on the first day of working, and encompasses paid parental leave, health care insurance, paid college fee, tips on how to save for the future, and other provisions to increase well-being and health [14]. Consequently, offering the following benefits and perks would improve how the individual employees perform their duties, and would transform the workplace into a more productive station;

• Stock option plans
• Short and long-term disability
• Financial planning resources
• Digital coaching
• Mental health services
• Gym facilities and reimbursement
• Fringe benefits
• Hybrid and remote work
• Student loan repayment
• Shares in the firm
• Wellness program
• Workplace flexibility

The Interview Questions

All workers at the various levels perform roles that contribute towards positive performance, and also encounter a wide range of issues that they must handle at their capacities. Consequently, engaging the top leaders through a series of questions provides adequate knowledge and information on how each of these high-ranking officers conduct their functions. The questions need to align to their specific duties, although it is common to experience general concerns taking into account that they are all leaders, and their roles and responsibilities revolve around guiding team followers into coming up with structures that foster organizational performance. An open-ended questionnaire guides the process to allow each of the interviewee to give as much explanation on each question as they wish. Other than allowing for unlimited response, open-ended questions are preferable in this instance because give real respondent’s insights [18, 19, 20]. Thus, the following are samples of the questions that would provide leaders with adequate awareness about their roles as stewards, thus increasing the probability of how they function and respond to organizational needs, especially now that things change very fast;

President and CEO

• What is your approach to steering the retailer towards the right path?
• What are the possible challenges do you encounter and is likely to experience in the near future?
• How do you plan to handle such constraints because Korejan and Shahbazi think that leaders should be able to find suitable remedies to the challenges before them [16]?
• Do you believe it team work? Please give a few reasons to support your answer?
• Have you ever thought of changing your leadership style? Why?
• How do you motivate fellow leaders and junior staff?
• What makes you unique from others that make you the President and CEO of the company?
• Do you believe and you confident the firm will achieve its mission and vision under your leadership?
• What advice can you offer to your team and other leaders in similar position?
• What is your last inspiring statement?

VP of Marketing

• Do you believe you have what it takes to steer the Marketing Department in this high capacity? Please describe some of your strengths, weaknesses, opportunities, and threats
• What are the marketing techniques you use to distinguish your approach to duty?
• Do you believe that technology facilitates marketing practices because Gotz et al. believe that managers in this area should be innovative [21]?
• How do you plan to incorporate technology and what ways will you deal with the challenges emanating from its use?
• What forms of partnerships will you form among team members to bolster operations?
• Would you still use conventional marketing approaches such as offering handouts, erecting billboards, print ads, event marketing, cold-calling, broadcasting, and referrals? Why
• What are the major impediments that could strain your efforts?
• What approaches do you think will evade some of these obstacles?
• What are your primary objectives moving forward?
• Do you think that attending national and global sessions and training will boost how the group approaches its work? Please identify some challenges associated with such engagement

VP of Sales

• How do you deal with increased workload at the organization?
• Do you engage in statistical analysis to predict increase or drop in sales?
• Would you term your leadership technique as inclusive and one that allows employees to contribute towards decision-making?
• What are the key achievements that sell you as a competent VP of Sales?
• Have you ever wished that you had not ascended to this position because of the tough and challenging decisions one has to make on daily basis?
• Do you think that based on the current approaches the company will achieve its goals in terms of improving sales?
• What do you think must happen to witness increased performance at your department?
• What are some of the milestones your team as achieved due to collaboration?
• What are your predictions on the company’s performance judging from the effects COVID-19 has had on companies?
• What inspiration would you like to give to your followers and the entire workforce?

VP of Finance

• What new approaches do you use to ensure that your duties are free from the errors that many accountants face in the course of their operations?
• What technologies do you feel impact the most on what you do as VP of Finance?
• What are the major hindrances that you face on regular basis?
• Do you have any effective plans on how to address the identified issues?
• What are your predictions for future performance considering that the company transforms how it operates and adopts more effective forms?
• What are your personal interests and what aspirations do you have as a leader?
• Do you think that members of your team rely on your guidance or would want to work with minimum supervision?
• What other thing would you say about how a leader ought to conduct their operations?
• How will you contribute towards achieving the main vision going forward?
• What is your view on applying ethics in how one performs their regular activities at the place of work?

VP of Human Resources

• What are the motivational techniques that you use inspire and engage workers?
• What are the major challenges that you encounter in your position as the VP of HR?
• What recruiting techniques do you use when hiring new employees?
• What is your views on diversity and what approaches do you use to promote the exercise?
• How will you deal with defiant and non-compliant employees?
• Did you ever think that you will rise to such a high-ranking position?
• Do you think you are the right person to change how the company performs its HR-related activities?
• Do you use technology to facilitate how you serve, for example, the HR information systems and data and analytics among others?
• How do you handle performance management? Do you have plans to make any changes in this area?
• How do you think the company would achieve sustainability next time pandemics occur?

VP of Operations

• What would you term to be your primary duties?
• What is your perception towards your roles?
• What methods and techniques do you think are indispensable in your work?
• What tough times have encountered as a leader?
• Do you think you are confident enough to deal with such challenges and even tougher concerns going forward?
• How many years have you served overall as a leader? How do you think that shapes you into an informed and competent decision-maker because Korejan and Shahbazi believe that experience contributes towards making a good leader [12]?
• How have you developed teamwork in your department?
• How will you engage top-management in ensuring that activities in your division run smoothly?
• What is your take on continuously reviewing processes?
• What roles do you think employees perform in achieving the goals in your department?

Mission and Vision

Presently, Amazon has a mission and a vision that guides its operations, but it may have to consider changing them to be more focused and competitive in everything that the company does. The company’s mission statement is to “strive to give its consumers the lowest possible rates, the best available options, and the most effective convenience” [22]. The organizational mission offers promise of appealing e-commerce activities to achieve buyers’ needs. Thus, Amazon pays attention on the variables of convenience, selection, and price. In this manner, various key aspects are recognizable in the firm’s mission statement; improved convenience, most appropriate selection, and affordable prices. The company’s decision to offer low prices is in accordance with the marketing mix model or 4Ps that call on marketers to set prices that many buyers can afford [22]. Lower prices are a selling point that makes Amazon’s e-commerce platform and services appealing to consumers across the globe. On the other hand, Amazon’s vision statement is “to be the globe’s most consumer-centric firm, where buyers can access and discover anything they may want to purchase online.” The vision statement underpins the retailer’s main aspiration of becoming the most appealing e-commerce firm in the globe. In this manner, various chief aspects are identifiable in the organization’s vision statement, including international reach, buyer-centric method, and broadest selection products. The global reach aspect in the company’s vision statement is majorly about international presence and dominance in the e-commerce sector. The firm in conducting its operations while relying on its mission and vision statements is on the right path because these guidelines offer a stable framework that can outshine internal transformations, and direct how workers think and act.

Whereas Amazon seems to be on the right direction while relying on its mission and vision statements, the company can become more effective by adopting alternative forms that are more effective and encouraging. Thus, the mission statement in this case should be direct on what the company seeks to achieve but in a way that appeals to as many consumers as possible. The most suitable mission statement for Amazon would be “To offer the best quality products and services while at the same time holding the needs of our stakeholders at heart.” Two great ideas that many people want to associate with a company appear in this mission statement – quality and increased focus on stakeholders’ needs. Nowadays many customers want quality and are willing to pay higher for products and services that meet their needs, and companies that do not meet these ideals are barely likely to fit into the contemporary marketplace [23, 24, 25]. Thus, a suitable way to be progressively competitive is to focus on quality provisions rather than making inferior items that could deter some customers from relating with the business [26]. The other aspect that makes the vision statement appealing is that it emphasizes the firm’s need to work closely with its stakeholders while focusing on meeting their needs. The statement does not specify any stakeholder in this case, which means that it will pay attention to all groups that relate to the company in one way or the other, including suppliers, buyers, workers, investors, the government, and communities among other groups. The team need to increase its attention toward stakeholders because Frick believes that when engagement is conducted appropriately, it enhances communication avenues between all parties, develops and sustains support for all initiatives, collects information for the firm, minimizes probability for conflicts or other project stumbling constraints, as well as improves the reputation of the company [27].

On the same note, Amazon needs to adopt a vision statement that would make it stand out from the rest, while at the same time ensuring that it appeals to buyers, who are the basis of its operations. A vision statement that would lead the company to be more focused and motivated would appear like this “To be one of the globe’s leading producers of innovative products and services and providers of a wide category of provision.” The improved version of the vision statement addresses two primary concerns – To be a leading producer globally and to be a producer of a wide category of items. The vision statement is relevant and likely to encourage the company to be more focused in all that it does with the goal of becoming the leading operator. Amazon has a higher chance of achieving its aspiration in this area because it has already showed its supremacy by being the leading online retailer for several years [27]. The article by Debter informs that Amazon surpassed Walmart to become the leading retailer globally in 2019 [27]. The company triumphed Walmart in all the key indicator areas such as market value, assets, profits, and revenues. Amazon in this case may only have to maintain activities that it thinks help it to retain its leading position. Regarding the other aspect, providing a wide range of services and goods, the company has a higher chance of appealing to more buyers and cementing its position as the leading retailer if it offers as many things as possible that buyers may want. Providing an extensive range of products and services is vital and more attractive to consumers because this saves them time and cost [11]. They do not have to move from one store to the other in search of what they need, thus enjoying the convenience associated with the process. Nonetheless, failing to give the mission and vision statements the attention they deserve and taking measures to transform them could deter any attempts to maintain the position that Amazon enjoys in the retail sector and overall.

SWOT Analysis

A SWOT analysis allows a company to know its strengths, weaknesses, opportunities, and threats, and to know how each of these impacts on the organizational operations. The method serves as a source of information for tactical planning because the management gets to know the areas that do well and those that require development [28]. Moreover, a SWOT analysis presents a chance to build the organizational strengths, and also to enhance its response to opportunities. In addition, a SWOT analysis is crucial because it creates the opportunity to overcome potential threats and to identify core competencies of the company. Therefore, conducting a SWOT analysis of Amazon would help to understand how the external resources and internal resources impact on the company, and how they could impact on organizational performance as the firm contemplates transforming its strategy to become more competent and competitive.

External Resources (Opportunities/Threats)

The opportunities and threats that Amazon face play fundamental functions in determining how the group embraces new strategic forms, thus calling for considerable attention on how this area works. An opportunity that could facilitate the company’s aspiration to become more effective is technological growth that has become more evident in the recent past. The retailer acknowledges the importance of utilizing modern technology and innovative ideas, and is improving its marketing and online payment systems [29]. The organization has an opportunity to scale up its sales with an improved online payment system because more consumers now focus on relating with firms that take security seriously, consider the recent increase in cybercrime-related crimes. Another opportunity that depicts Amazon as a strategic retailer that can effectively transform its plan is that it sells many products and services under its brand rather than serving as a forwarding site for third party operators. In other words, the corporation can increase the number of its provisions under its trademark rather than basically stocking and selling goods produced by associates [16]. The other opportunity that could serve as an advantage to the company is that it invests in expanding its international footprint and creating new sites in emerging economies, which would definitely give it an edge in the online retailing sector.

On the other hand, the company must pay attention to the threats that could affect its operations. One of the primary threats to the company’s success is the escalating concerns surrounding online shopping due to identity theft and increased hacking, which leaves its buyers’ data exposed. Consequently, the company must move in quickly to address the doubts customers have over its online podiums and ensure that the safety and confidentiality of every client is protected [26]. Furthermore, because of the company’s aggressive pricing plans, the firm has had to deal with lawsuits from rival firms and publishers. The cost leadership approach that the company follows has become a source of problem for the retailer because of the rivals being upset with the online giant taking away their businesses. Thus, the stiff competition is a major concern and threat for Amazon because other retailers continuously improve their structures to woo more buyers. Furthermore, the group has to cope with the strict government regulations enacted in all places where it serves, and must adjust to the local culture, a requirement that has proved difficult, especially in China where Amazon was compelled to pull out some of its products and services for failing to comply with the local consumers’ needs that are largely impacted by their cultural needs [30]. The top management should not relent in its attempts to address the threats that could deter the group from embracing an effective and competitive strategic plan.

Internal Resources (Strengths/Weaknesses)

The company should take advantage of its strengths as it adopts a new strategic plan, as well as pay attention to the weaknesses that could deter its ambitions. One of the strengths that could expedite how Amazon works is that it enjoys the position of a principal online seller [29]. The group acquires its strength from a three-legged strategic plan based on cost leadership, focus, and differentiation. The plan has resulted in the firm gaining the advantages from this course of plan, and this has enabled shareholders to get value from the company. Another strength is that the corporation largely gets its competitive advantage from leveraging IT and its utilization of e-commerce as a platform for ensuring that the company is ahead of the rest. Besides, a key strength that Amazon deploys is that it enjoys a positive reputation and this has facilitated its entry into new markets. Also important is that while relying on effective distribution and logistics systems, the retailer has been able to improve customer satisfaction and this has contributed in the firm acquiring competitive advantage over its competitors. However, the weaknesses that could deter the company’s attempts to embrace a more competitive strategic plan requires considerable attention. One of the main worries is that in the recent past, the corporation has concentrated on offering free transport as a way of enticing consumers [25]. However, this approach puts it in danger of losing its financial target, and hence might not be in a position to increase on costs because of this plan. Another weakness that is of significant concern to the company is that it largely focuses its operations as an online retailer, an approach that could distract the firm’s attempts to enter new markets using alternative forms, especially where the online approach cannot work appropriately. Critics also think that Amazon is also diverting from its original purpose of selling books, and venturing into other areas [26]. Whereas this may appear as a diversification plan, it is essential to consider keenly how the group broadens its operations to avoid any hiccups that could disrupt operations.

Strengths Leading online seller Advanced technology Good reputation	Weaknesses Financial loss for offering free transport Mostly focuses on online operations Diverting from original purpose of selling online books
Opportunities Technological growth Using own brand Expands to foreign markets	Threats Cybercrime Competition Government regulations

Analysis of the Implications of the SWOT

Based on the SWOT analysis, it is apparent that whereas some factors could influence the company’s shift into a more strategic firm, other factors could derail its initiatives and could possibly deter its attempts to maintain its leading position. The top management should liaise with other leaders to develop ways of using the company’s strengths to achieve more impressive performance [28]. The engagement would offer the opportunity to introduce new ideas, and generate concepts that would mitigate the weaknesses and threats that are of great concern. The team in addressing the weaknesses should rely on effective decision-making models that aid decision-making in various organizations. A suitable approach in this instance would be to rely on the decision-making approach suggested earlier that require interveners to select a suitable decision before coming up with alternatives and ultimately choosing and considering the effects of the chosen decision [8]. Another important factor to consider is to seek the views of all members of staff while working towards addressing the factors that affect the company. Engaging workers in decision-making is important because it nurtures confidence among employees, and helps to attain cooperation in all that the corporation does [23]. In addition, allowing workers to contribute towards ways of addressing the weaknesses and threats that are likely to disrupt the company’s attempts to embrace a strategic plan that is more effective and elaborate. The management must move in quickly to mitigate the issues that come up through the SWOT analysis, lest the company fails to attain its strategic objectives and retain its leading position in the retail sector.

The Problems

Thecompany’s value chain activities play fundamental functions at Amazon. The practice comprises of five chief activities. Inbound operations, operations, outbound activities, marketing and sales, services. The auxiliary or secondary activities that are equally essential in making the value chain work, include human resource management, organizational infrastructure, technological growth, and procurement and purchasing. The inbound operations are activities relating to handling resources coming from outside sources [30]. Operations change inputs into outputs, which are the services and products being issued to buyers. Outbound logistics focus on the delivery of the outputs to buyers, whereas marketing and sales focus on activities that familiarize buyers with the provisions and appeal to them to buy. The final category in the primary section – services, comprise of customer support and services issued in relation to the product [30]. However, for these activities to take place effectively, various supporting initiatives must exist. The group must buy necessary resources and equipment from external vendors and maintain a strong relationship. Besides, the group must practice HR management (HRM), which entails employing, training, developing, and upholding business culture, and maintaining constructive employee relationship [21]. At the same time Amazon needs to use technology that enables it to conduct its operations more effectively. For instance, the business has invested in the use of delivery drones that differentiates it from other entities in the retail segment [21]. The technology enables it to make quick deliveries while at the same time selling the brand as a technologically advanced operator. Also important in completing the value chain is the infrastructure the company uses to run its activities.

Chai [31]

Nonetheless, the company encounters various challenges at the various areas of the value chain. For example, the group should get workers from diverse backgrounds, but this creates some challenges in the way they relate with their fellows from other backgrounds. The company must also deal with technological problems originating from its activities [25]. However, it is possible to acquire a broader overview of the effects of various issues on the company’s value chain activities by examining them using three reliable models – PESTLE Analysis, Porter’s 5 Forces, and VRIO.

PESTLE Analysis

Political Factors

Various political factors impact on the company’s attempts to improve its value chain activities across all its stations. Some of the major concerns include the state’s impact on the company’s infrastructure, regulations on trade and levy, and tariffs [25]. The company must achieve all these regulations to operate; otherwise, it will encounter considerable constraints and opposition.

Economic Factors

Also impacting on the company’s value chain activities are economic factors in the markets where it operates. Some of the most powerful factors in this group include interest charges, family and individual wages, economic development, and inflation [32]. The value chain activities are only likely to excel in scenarios where the economy is stable. However, the operations are not likely to do well in areas that encounter considerable economic constraints.

Social Factors

Equally essential are the social factors that impact on how the company works towards achieving its value chain activities and goals. Factors comprise health and safety consciousness, cultural features, and demographic elements [33]. Consequently, it is difficult to conduct value chain activities in markets where the health of workers and their safety consciousness is low.

Technological Factors

Technological factors play essential roles in determining how the company performs its value chain activities. It is actually one of the secondary elements of the value chain model. The operations are much easier to conduct in an environment that enjoys advanced technological advancement, and in markets where operators are conversant with the various forms [32].

Legal Factors

The legal factors are equally influential in determining how Amazon handles its value chain operations, and how this could impact activities even as it considers adopting an alternative strategy that would allow the firm to be more impactful. The activities are more likely to be difficult in areas where legal restrictions are stiff and implication of non-compliance is severe.

Environmental Factors

The company’s value chain activities record significant performance when the group adheres to environmental regulations. It excels when it does not pollute the environment, and when it shows its commitment to protect various environmental aspects.

Porter’s 5 Forces

The Porter’s five forces are equally influential in determining how Amazon performs its value chain activities, and how it is likely to handle the area going forward as it seeks to improve its strategic plan. The company may be required to enact practices that improve its operations in this area because other firms are equally striving to excel in their value chain activities [30]. The other factor that could determine the company’s handling of the value chain activities is potential new market entrants who could also impact on the firm’s approaches in this area. Also important is the potential effect of substitute products, which may also compel the firm to adjust its operations to prevent some of its buyers from changing to alternative operators. Also important are the consumers and suppliers’ power. For instance, the team may be compelled to use higher costs to facilitate operations of the value chain when it buyers and suppliers demand for lower and higher prices, respectively.

Analysis of Amazon’s Strategic Capabilities according to VRIO

This section focuses on Amazon’s low cost approach and online selling as the key strategic capabilities, and which serve as the basis of the VRIO analysis. Both forms add value to the organization because they appeal to considerable number of consumers. However, the approaches are not rare because other firms have explored similar techniques to appeal to their consumers. For example, Alibaba, the second leading online retailer globally, allows their consumers to make online orders from any part of the world [34]. Furthermore, both capabilities are imitable, which means that other companies can easily copy and enact them in their practices. In terms of organization, Amazon has the capacity and infrastructure to maintain operations in each area. For instance, the company has advanced its IT infrastructure to make online orders and pay for the same.

Recommended Strategic Objectives

Amazon needs to consider certain factors that would improve its short and long-term aspirations as well as strengthen its position in the market where it serves. An option that it needs to consider to improve the constraints that derail its value chain activities in the various markets where it operates is to use the various analytical models to understand how the external environment could impact on its operations. For instance, the group need to be more familiar with how frameworks such as PESTEL, SWOT, VRIO, and Porter’s 5 Forces [32, 35]. Another recommendation that would enable the company to strengthen its position is to embrace effective marketing approaches based on reliable models. A suitable framework in this case is pay more attention to the marketing mix model that already serves as a basis for marketing at the organization. The group in this case needs to emphasize on the other areas other than price, which include making the services and products available in as many places as possible, conducting effective and appealing promotional exercises using both traditional and digital forms, and offering products and services of high quality [25, 36]. More essentially, the group’s performance would determine on how well the company forms strategic ties with other corporations in the form of mergers and acquisition [22]. The retailer has already made a significant achievement in this area, especially in the way it appears in its acquisition of MGM, a U.S.-based film studio. Amazon had also acquired Zoox Inc. in 2020 and India’s Future Group in 2019 [346. Nevertheless, the company has more chances for such ties because this increases its likelihoods for attaining longstanding strategic objectives [7]. The group must commit enough resources toward the implementation process to be in a position to make significant strides.

Implementation Plan

Strategic Goal: Improving Value Chain Activities Strategic Objectives: 1. Finding a remedy to the issues in the macro environment affecting value chain activities 2. Improving marketing activities based on the 4Ps model 3. Increasing M&As
Action Items	Human and Physical Resources	Timeline	Evaluation
Finding a remedy to the issues in the macro environment affecting value chain activities	Human Resources: Recruit competent employeesEnsure that all employees are trained Enacting motivation Physical Resources: Allocation of fundsAcquiring more advanced machines. Outlining guidelines in manuals	June 2022 – December 2022	Consider number of complaints because Amin and Demir think that the higher the concerns the less satisfied is the working team [13]. Assess level of efficacyExamine profit generationEase of responding to emerging concerns.
Improving marketing activities based on the 4Ps model	Human Resources: Training workers on effective marketing techniques Installing highly qualified personnel in respective areas. Physical Resources: Construct infrastructures Improve communication	June 2022 – December 2022	Assess level of buyer responseMonitor level of purchaseExamine revenue production
Increasing M&As	Human Resources: Training workers on effective M&As approaches because this provides them with relevant skills and knowledge [8]. Emphasizing the need for such plans Physical Resources: Guiding policies and structures Erecting or leasing more operating facilities Purchasing additional hardware and software	June 2022 – December 2022	Number of M&AsRevenue generation Improved technology is a strength that allows a firm to compete effectively [25]. Global presence

Conclusion

Amazon is a leader in its area of operation, but it still has a chance to make its activities more effective. The group needs to pay considerable attention to its value chain activities and identify activities in the external environment that could impede how it works conducts the key operations. The team should also pay more attention to how it markets its products to attract more buyers. The group should pay considerable attention to the 4Ps model that already guide how the retailer markets its products and services. Also important is to improve how the company forms ties with other operators because this increases its impact on the domestic and global markets. However, the study reveals that the company is only likely to succeed in these key areas if it considers other equally essential factors and approaches. Most of these revolve around adopting practices that enable the retailer to understand how the external environment influence its activities.

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