Running head: STRATEGIC PLAN PART 3: STRATEGIC EVOLUTION AND RECOMMENDATION Strategic Plan, Part 3: Strategic Evolution and Recommendation Julie Tiffany STR 581 November 6, 2017 Suchitra Veera 1 STRATEGIC PLAN PART 3: STRATEGIC EVALUTION AND RECOMMENDATION 2 Strategic Plan Part 3: Strategic Evolution and Recommendation Amazon cuts prices to attract customers, which increases sales and attracts more customers, which allows the company to benefit from economies of scale (bundling together logistics and other routine costs), until, ultimately, the company can cut prices again, spinning the flywheel anew. Amazon is currently the leader in the industry of e-commerce. Amazons core competencies focused on satisfying customer needs to achieve above-average returns. Amazon has become a successful business due to it business level, corporate, and global strategies. Business-Level Strategies Amazon.com is currently the best option for the customer it allows them to shop online where ever they are and whatever time they choose to. Amazon provides a wide variety of products at the same place and offers many categories making it easier to shop online. In the past direct competition was because people had to go shopping physically. Amazon began encouraging customers to check out products in brick-and-mortar stores (like Target and Walmart) and then hunt them out on Amazon for a price comparison. Including Amazons, cost leadership which Amazon competes with other top sellers to Amazon price is based on internal efficiency to have a margin that will sustain above-average returns and cost to the customer so that customers will purchase your product/service. Amazon makes the profit every time it sells a product by taking a small percentage of the sale price which it sells through their website. Also, another way that Amazon makes a profit is by placing advertising on the Amazon website and charging the seller. The main characteristic that has allowed Amazon to make profits is the large customer base of 30 million customers and the customers purchasing Amazon Prime. Amazon Prime priced at $99.00 per year which all is profit to Amazon. Amazon is taking the lead in STRATEGIC PLAN PART 3: STRATEGIC EVALUTION AND RECOMMENDATION 3 online sales and is making it difficult for stores to keep up with them when it comes to saving time and money. Corporate-Level Strategies Corporate level strategy for Amazon uses leveraging technological capabilities for business success and following a cost leadership strategy aimed at offering the maximum value for its customers at the lowest price in addition to wrapping its business around the customers wherein they find Amazon to be the go-to portal for their online shopping needs. The specific measures taken by Amazon in pursuit of this strategy include steep discounts. For its regular members through the Amazon Prime program, Amazon ensures timely and even express delivery Sometimes waving off the shipping charges, passing on the benefits of avoiding state taxes to the customers thereby lowering the price even further, and an overall strategy based on making the customer experience as seamless and as smooth as possible. Global Strategies Amazon operates 11 online marketplaces websites worldwide, allowing sellers to grow their business internationally, independent of where their company which are physically established. This influences how to handle customer support, contact with Amazon but also on demand on our products. For example, is if a sell in the United States it doesn't automatically mean it will go well in Japan and vice versa. One of the most significant benefits is that sellers around the world can leverage the Amazon brand without having put in upfront costs of building business name recognition on their own in a brand new sales environment. It's important to note that market reach is not limited. Amazon customers come from 178 countries around the world. Recommendation of Strategy STRATEGIC PLAN PART 3: STRATEGIC EVALUTION AND RECOMMENDATION 4 Some recommended strategies for Amazon are for Amazon to continue using the SWOT Amazon.com Inc.'s e-commerce success relies on its notable strengths. Also, is for Amazon to include some areas of marketing that lend themselves to being led at a global or central level include branding and brand guidelines, strategic marketing planning and budgeting, large-scale marketing campaigns, social media strategy and guidelines, research strategy, and global PR. Too often, operating around the world is seen as an excuse to avoid spending time understanding local cultures, customer needs, and behaviors, as well as prosperous and less prosperous marketing approaches. For a global model to work, worldwide teams need to develop an understanding of local markets and establish a close relationship with local marketing teams. So, if you are in a global marketing role: Research the markets and take the time to get to know the international groups, that Amazon will be planning on working with; lastly, Amazon is recommending developing and socialize a global marketing plan early and seek feedback. Amazon shall establish an essential relationship, local research markets, and define comprehensive marketing plans which you think accommodate local needs where required. Conclusion Amazon has popularized "one-click" selling wherein customers can buy anything and everything that is for sale on its portal with just a click of the mouse. Finally, Amazon needs to adopt a Global approach in its international markets wherein it adapts its Global business model with that of its Local delivery and logistics supply chain. With Amazon keeping up with what is in it will keep on being the leader in e-commerce. STRATEGIC PLAN PART 3: STRATEGIC EVALUTION AND RECOMMENDATION References Amazon.com, Inc. Form 10-K. Liao, C., Chuang, S. H., & To, P. L. (2011). How knowledge management mediates the relationship between environment and organizational structure. Journal of Business Research, 64(7), 728-736. Markides, C. C., & Williamson, P. J. (1996). Corporate diversification and organizational structure: A resource-based view. Academy of Management journal, 39(2), 340-367. Menguc, B., & Auh, S. (2010). Development and return on execution of product innovation capabilities: The role of organizational structure. Industrial marketing management, 39(5), 820-831. Bernroider, E. (2002). 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