Amazon Strategy Evaluation Report Paper Example

Paper Type:  Report
Pages:  7
Wordcount:  1694 Words
Date:  2022-08-30

Any project either small or large would always dream and focus on achieving the best results in a given period. It is a norm that a business should always bear in mind reviewing on its important strategy. A business strategy is merely documentation that vividly articulates the direction in which the market should undertake to realize the intended objectives and goals. It is vital for any business to have a well-developed business strategy because of the following reasons: It is geared at driving the market in a clear, focused and implemented its decisions in a better direction. It translates that the market is not likely to downfall. It is always crucial to have a standard strategy in any unit of investment because it offers the drive and impetus. It catapults the business, and its team performs the best in achieving the goals. It also makes the company understand the current level it is; it can be done by evaluation based on the SWOT analysis (Prasad, 2015).

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The company can quickly pinpoint the opportunities that can grab in the market thus attaining the target result. A better business strategy also allows the company to correct any deviations through the provision for better discussions from the consultants. Amazon is an American cloud computing, online retail, digital content and at the same time electronic commerce company with its headquarters in Settle, Washington DC. It was founded in 1994 by a man known as Jeff Bezos. The company has continuously been recording impressive results regarding revenue and profits as a result of the adoption of an effective plan. From Amazon's figures, the company has been increasingly selling its products and offering services every year from 2013-2017. Each year, there has been a significant swell in the percentage of revenues. In 2013, the income of Amazon was approximately $74.45B. In 2014, the company recorded considerable revenue of almost 88.99B while in 2015 the income was roughly $107.01B. In 2016, the total revenue was 135.99B.In 2017 Amazon recorded revenue of 177.87B. On the other hand, the profit trend from 2013-2017 was $9.79B, 10.74B, 13.38B, 19.29B and 27.71B respectively. It indicates a positive percentage annually (AL, 2017).

The project's value ultimately will go up because of the use of multi-segment positioning. It offers a vast range of products alongside with services thus able to exploit one segment at the same time. The company operating online can sell over 560 million products to the customers. It also assumes an adaptive positioning whereby it tracks the changes in the outside market and thus repositioning services and products according to the changes.

The annual increase in sales translates to a direct proportion of profit gained each year thus the value of the company increases every year. From the past results, one can forecast automatically on the sales recorded by the company in some years ahead that it will improve. It is because it can attract more customers well than rather sell their products. The company can adapt quickly to changing market situations (Whitehead, 2012). It is made possible since it can majorly dwell on the analysis of its strengths, weaknesses, opportunities as well as any potential threats. Some of the forces that Amazon has are as follows: It uses superior logistics systems in its distributions of products. It has been able to actualize efficient consumer fulfillment thus deriving the element of competitive advantage over its counterparts. It primarily derives its competitive advantage from the information technology and thus able to employ the use of e-commerce as a climbable and comfortable to jump up to platform providing possible assurance of being far much ahead of the competitors.

Amazon Inc. has had a strong customer relation strategy contributing immensely to its success. The company has been committed to the customer; it is known to have been the DNA of the company. It has further built the corporate culture of listening. All the staffs belonging to the company can listen to the customers keenly and thus delivering the best they can. It proportionally results in customer satisfaction at all times. The company has acted as a community of fellow customer support. When the customers can help one another, the representatives can, therefore, be in a position to handle the request in a comfortable and faster manner. Amazon has always been offering a 24/7 span customer support. They have been reaching out to the company for help either through messaging, emailing or even direct call for possible assistance and verifications in tackling a problem. The company has always been able to be involved in busy innovations and inventions. The customer's needs have driven changes; it concerns the type of brands relating a specific product in the market. In general terms, the company has been fostering the relationships with the customers in all seasons thus the ability to retain most of its customers.

The company has been actively trying expanding its areas of operation. Amazon has been opening its branches in different geographical locations around the globe. It is has been majorly doing so to ensure that it firmly gets near the customers and also ensure that new customers are acquired. The expansion has grown to about 40% in volume mainly in Asia and Europe. The company has even been exercising the use of artificially intelligent systems as well as the smart virtual agents. It has been in use as a tool possible for upgrading the ties with the customers. More changes have taken place in the of information systems regarding the interaction with the customers.

The customer has always been offering competitive prices on its products and services. Setting up an affordable price has become bait for new customers. In comparison to its rivals selling their services and goods at an extremely high price, the company is known to have won more customers due to its low rates. The company has also been advertising on the products and services it offers through online platforms especially the social media. Explicit adverts have resulted in the expansion in the market. It has played a sheet anchor role in ensuring that the demand for the products is widened as well as ensuring that customers get the delivery at the far-flung. Sales have been able to increase as a result of the advertisements which are precise.

Amazon Inc. is, therefore, using the right strategies thus contributing to its constant growth. It is important for a company to ensure that the customer relationship is maintained because it automatically eliminates market rejection. Unsatisfied customers naturally pass the information to approximately fifteen other people concerning the nasty experience they may have passed through in any company (World Bank et al.2014). The informed individual develops terrible attitudes towards the company, and therefore they tend to shun away from purchasing products or services in the company. It is also possible to achieve the new connections if the relationship between the customer and the company is strictly maintained. The company has to keep steady information on deals, products via email, events or even websites to the customers.

For the future success, the board of directors should do the following to ensure that any possible deviation does not occur since it will result in the backsliding of the company. Fixation of the performance benchmark is a vital step for the company. When trying to fix the reference, several questions can ring in mind which may include the following what recommendations are to be set, how they were established as well as the criteria of expression are. In the determination of the benchmark performance set, it is important to identify the critical reason for performing the first undertaking. The results may indicate the best recognize as well as expressing special requirements that facilitate the evaluation process effectively. Amazon can thereby decide to use either qualitative or even quantitative approach for the efficient and compelling analysis of the results. The quantitative approach may encapsulate the determination of earning per share, net profit among other parameters.

On the other hand, qualitative factors involve the evaluation of the following important factors: level of competence as well as skills, flexibility in work doing among other factors. The board of directors should also be in a position to measure the performance. It is because ideal performance is a benchmark whereby comparisons can be made one on one.


The evaluation process is effectively done chronologically if the right communication channel and measurement parameters are available. It is a challenge and entirely impossible for the company to measure the management since it's not quantitative (Patton, 2014). At the same time, the divided performance is unacceptable to be measured since there is the integration of efforts, unlike the individual shots. For instance, it becomes mandated for the creation of variable objectives to be created contrary to the type of measurements to be done. Time is an important aspect in the evaluation process, and thus quantitative measures should be correctly reviewed for the achievement of set targets in a given period. Amazon can be able to measure its performance through the use of financial statements and other tools. The board should then analyze the variance correctly. Original targets are set though there are deviations in comparison with the present situation; it is, therefore, the mandate to make comparisons for the possible variations. There might be negative or positive deviations. Negative differences indicate downfalls within the company while the positive difference suggests progress. Corrective action is then finally taken to ensure that normal conditions that were set before are attained thus making the Amazon Company outshine other companies and compete favorably in the market. It is, therefore, a priority for the directors of Amazon to concentrate on customers' need and allow them to air out views concerning products and services so that better corrective measures can be made.



Patton, M. Q. (2014). Qualitative research & evaluation methods: Integrating theory and practice.

Prasad, K. (2015). Strategic management.Whitehead, J. (2012). What You Need to Know about Strategy. Hoboken: John Wiley & Sons.

World Bank., & World Bank Group. (2014). Brazil country program evaluation, FY2004-11: Evaluation of the World Bank Group program.

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