您好,欢迎来到360论文服务中心!设为首页 | 加入收藏

360论文服务中心

客服中心

全国咨询电话:18810141013

QQ :点击这里给我发消息 80017332

 点击这里给我发消息 634602927

手机:18810141013

邮箱:634602927@qq.com

短信:18810141013

本站介绍

360论文服务中心是最受欢迎的论文发表与论文编辑服务网站。

360论文服务中心于2000年创建,注册用户量已突破152万人,并帮助近380万人次顺利发表论文。14年来,360论文服务中心始终遵循热情快捷、安全可靠的服务宗旨,深受广大网民青睐。360论文服务中心主要设有论文发表部、论文创作部、期刊合作部、论文采编部、技术运营部和市场推广部等多个部门,是目前国内论文行业,规模最大、服务人员最多的正规网站。

创作发表说明

1. 如果您没有论文,还要评定职称,需要发表论文,请联系我们,客服人员会及时处理;

2. 教授、博士组成的论文指导团队,专业打造高品质论文;

3. 合作期刊,全国最全,与杂志社关系稳定,保证刊期。

360论文服务中心 > 论文写作 > 英语毕业论文 > 英语论文 >

Organizational Strategy and Decision Making——Taking Amazon

2015-04-20 20:12 字体:   打印 收藏 

Abstract
The human race has entered a completely new period full of opportunities and innovation. In this competitive situation, it is essential for companies to produce effective strategies and proper decision making to survive. Therefore, this requires any strategic management to develop in a way such that it is diversified to adopt the multi-dimensional, dynamic changes in the international environment. 
 
Introduction
With the current economic structure and globalization, the demand for better quality of life is constantly increasing and international processes in various industries are growing in greater depths. Due to the increasing demands as mentioned above, it is important for companies to analyze ways to attract customers who are profitable to them, and thus, face multiple challenges that may come in their way. This essay will be divided into five parts. First section will introduce the history of Amazon and use the SWOT analysis to the strengths, weaknesses, opportunities and threats of Amazon. In the next sections, after a statement of amazon.com situation, will bring the audit areas together and critically analyze the Amazon strategy and context. This will be followed by a description of how Amazon develops in the further.  
Organizational strategy is “the direction and scope of an organization over the long term, which achieve advantage in a changing environment through its configuration of resource and competences with the aim of fulfilling stakeholder expectations” (Johnson Scholes & Whittington, 1958). According to Drucker Organizational strategy is organization’s decisions and objectives that determine the long-range planning of an organization (1959). Organizations should first identify the current objectives and strategies. Analyzing the internal and external environment and making the strategy which can fit with the business environment and identify the opportunities and weaknesses in the organization. 
 
Amazon
Amazon.com is an American electronic commerce company and it is the largest Internet-based company in the United States. Amazon.COM was founded in 1995 by Jeff Bezos. At the beginning, Amazon.com only sold the book online, gradually expended, selling various of things like video, CDs, DVDs, VHSs, video games electronics and MP3 downloads, apparel , furniture, food, toys and jewellery. 
Amazon vision and mission is to create a retail website that can help people find anything they might want to buy online. All the strategy like marketing campaigns, promotions, advertising, acquisitions are towards this mission.
Undergoing by server years, Amazon.com has widespread all over the world, Amazon has websites and warehouses in Canada, France, Germany, United Kingdom, Italy, Spain, China and Japan.
 
SWOT analysis 
Strengths
1. The advantage of Internet marketing strategy 
Amazon is using the Internet marketing strategy. Comparing with the traditional marketing ways, Amazon has various advantages like relying on internet infrastructure (Javalgi and Ramsey, 2001), high reach and richness of information (Evans and Wurster, 1999), high levels of connectivity (Dutta and Segev, 1999). The traditional marketing model would have dwarfed Amazon’s network marketing mode.
2. Excellent service software system
Amazon has about 20% of the employees working in software development, like the books information retrieval system, purchase system, the payment system, one-click purchases personally recommend, hobbies management, E - Card services, Amazon - Wedding, Your Amazon Home and so on. Amazon is well-designed and technology advances enhances amazon’s reliability and functioning.
3. The principle of client focus
Amazon has always followed to the principle of client focus. This can be viewed in two different angles: first, amazon has excellent online software service system, for example provide customers with convenient and personalized service. Second, Amazon’s product-distribution also reflected the principle of client focus. Amazon not only has free delivery service but also offer unconditional return service. Amazon.com always follows to "people-oriented" management principles, use of human services and has attracted thousands of new customers and repeat customers.
4. The rich variety of items
At the beginning, Amazon.com only sold the book online, but now Amazon is selling various of things like video, CDs, DVDs, VHSs, video games electronics and MP3 downloads, apparel , furniture, clothing, food, sports goods, toys and jewelry, cosmetics, watch and so on. Amazon.com has now developed as a big Online Shopping Mall. In addition, customers also can find all kinds of products from other countries and customers can choice same product from different area. Amazon provides various choices for customers and makes them can find what they want.
5. Capacity for innovation
In the age of global competition, design innovation is important (Burns& Stalker, 1961). The Amazon.com’ capacity for innovation is one of its greatest comparative advantages. Amazon has created many innovative services and products. For example, Amazon announced a limited public beta test of EC2 on August 2006. Amazon Elastic Compute Cloud (EC2) is a great Amazon Web Services. This innovation constantly improving and now has attracted thousands of customers. Except EC2 there are also many others innovation Amazon Web Services like Amazon S3, Amazon Simple DB、Amazon Simple Queue Service, Amazon FPS, Amazon Mechanical Turk and Amazon Cloud Front(Riedl et al., 2010). In addition, Amazon's Kindle first came out in November 2007, this can be considered as a kind of innovation. In addition, Amazon also integrated electronic ink display and wireless technology and let the e-book purchase and downloads activity finished on the handheld devices. Amazon's great strength has been its ability to innovate - to develop new ideas and services.
 
Disadvantage (Weakness)
1. Diversification expansion comes with risk
The diversification can bring many benefits and the crisis and fall of many companies also are related to the diversification expansion. Amazon.com's product line are becoming more varied and successively created stand-alone site in Canada, Britain, France, Germany and other countries. Diversification also may bring a wider loss and increase the management difficulty. What is more, Amazon.com is continually exploring new business areas and gradually increasing the distribution center that may bring some Cross-Border Mergers and Acquisitions risks.
2. Transnational strategy brought Localization problem 
Amazon .com has acquired China Joyo in august 2004. Indeed, localization it is a big problem if Amazon.com want to succeed in China. Because different social culture reflects people's basic beliefs, values. Social cultures will effects on human resource management. For example, different social culture may have different way of thinking and manage employees. Organization should carefully consider the social and cultural environment factors, especially multinational companies, under the management strategy of combination of internationalization and localization. Amazon .com should adjust business strategy and human resource policies according to different countries and different parts of the social culture.
 
Opportunities
1. The market advantage
Seen against a background of modern Internet technologies, the network consumption is growing steadily. With the popularization of Internet, on line shopping also varied. More and more people like to stay at home and buy the products through the Internet, all these done with mouse clicks. On-line shopping helps to Amazon.com create more development opportunities and get broader market.
2. Acquisition of other well-known websites
Amazon.com bought a lot of well-known websites. For example, Joyo.com a Chinese e-commerce website, dpreview.com a digital photography reviews website dpreview.com and so on. Amazon.com brought joyo.com and entered the Chinese market. It is very helpful and effective way to help Amazon.com to get more market from other countries.
Threats
1. The market competition
Amazon has various competitors like traditional shopping, television shopping, direct distribution of publishing house and other online shopping companies. Facing with increasingly fierce competitive pressure, Amazon.com should use various effective measures to improve competition abilities.
2. The influence of network hacker
The network hacker activities happened frequently. Yahoo has attacked by Hacker in 2000 and Buy.com and eBay also experienced same situation. In 6 December 2004, Amazon.com could not work because of network Hacker. The online shopping website will face the threat like network hackers, viruses and so on. It is important to o establish the supervisory system to protect the network users and network companies.
 
Discussion
 
Through SWOT analysis, Amazon.com has many strengths and opportunities. Amazon also faces various weaknesses and external threats. However, these audits could affect Amazon’s strategy and decision making.
Amazon has great strength compare with the tradition way of shopping. Amazon.com uses the Internet marketing strategy and it provides a great, low-cost advantage over other traditional way of shopping(Spector & Richardson, 2002). Online shopping not only can reduces the middle business cost within the traditional-sale's pattern, but also let the user do shopping at home and help customers save a plenty of time. 
Customer relationship management strategy 
The success of Amazon is based on its Customer relationship management strategy. Amazon’s “vision is to be Earth's most customer‐centric company; to build a place where people can come to find and discover anything they might want to buy online” (Amazon.com Inc.2008). According to Datamonitor (2004), Amazon used a third of its budget to develop it in-house Customer relationship management technology and its digital platform in 2001. This technology further support Amazon expanding market share and attract more consumers. The IT systems support this customer relationship management strategy has allowed Amazon to reach customer loyalty rates as high as 50 percent (Datamonitor, 2004a). In order to create a greater sense of loyalty, it is important to provide convenient for online customers like easy navigation and streamlined purchasing (Dillon & Hackney, 2001). Amazon’s customers can find what they want in several chicks and they also can find detail information of commodity. Amazon.com’s one-click ordering is a great change for its customers. The one –click checkout could store a customer’s billing information so those customers do not have to enter it every time they make payment (Dillon &Hackney, 2001).
Logistics strategy
Amazon.com provides free shipping and provides its customers with the option to become an Amazon prime member. Customers only need pay $79 per year and they can receive unlimited express two‐day shipping for free or the option to upgrade to one‐day delivery for just $3.99 (Amazon.com Inc, 2008). Amazon.com first introduced free shipping on orders of $99 or higher, then reduced it to $49 and in 2002 reduced it to $25. According to amazon report in 2005, company helped customers to save a total of $475 million because the free shipping and other logistics strategy. It is means that company has lost 475 million dollars. And the immediate consequence of this is that Amazon failed to achieve profit targets in the fourth quarter, 2005. And the results made the stock price reduce 10% (Amazon.com Inc, 2008). This situation also made many investors questioned whether amazon's logistics strategy is right, whether it is worth to invest. Amazon free shipping strategy would be a challenge in the long run.
Amazon.com has a lot of competitors like ebay.com and Walmart. In order to win the competition Amazon.com has to adopt a lot of selling strategies to attract customers like provides huge discount, promotion-gift. As long as customers open the website they can see an overwhelming variety of discounted products, it will inspire customers to get in shopping. This strategy would make Amazon lose profit. Since 2001 Amazon.com has reduced by an average of almost 10% of all online merchandise. The price is lower than the market price and highest discount already passed 70%. As long as customers open the website they can see an overwhelming variety of discounted products, it will inspire customers to get in shopping and help Amazon.com improve productivity. However, this strategy makes Amazon.com increased sales but gain low margin. Amazon.com provides discounts to expand their market. 
 
Evaluation
For the past ten years, Amazon has been busy preparing for gaining more market and improving its service. According to SWOT analysis, there are a lot of internal weaknesses and external threats. Amazon should change some strategies to solve these problems and make full use of the external opportunities and internal strengths. In order to survive in future competition, Amazon should to consider how to change competitive strategy and how to take advantage of resources and formulate organization strategies of technological innovation. 
It is important to note that Amazon has made a great success is due to its creative ability. In an interview Bezos said “One of the only ways to get out of a tight box is to invent your way out” (Quittner, 2008). In the increasingly fierce competition, innovation plays an extremely important role. Amazon keeps abreast with the latest development of technology and continually creates new products and service (Business Week, 2008). For example, Amazon Elastic Compute Cloud (EC2) is a great Amazon Web Services. This innovation constantly improving customer service and now has attracted thousands of customers. Except EC2 there are also many others innovation Amazon Web Services like Amazon S3, Amazon Simple DB、Amazon Simple Queue Service, Amazon FPS, Amazon Mechanical Turk and Amazon Cloud Front and so on(Riedl et al., 2010). In addition, Amazon's Kindle first came out in November 2007, this can be considered as a great innovation. Confronted with competition with ebay.com, Walmart, Amazon’s innovation strategy play an important affect to it development. In dealing with Amazon’s future development, right organizational strategy and decision making will also help Amazon.com gain more market.
Second, focus on the customer. Along with the advance of technology and information, and great changes have taken place in people’s attitude towards some traditional practice, people are attaching more and more important to the service quality. If provide customers with high quality service, Amazon can win more loyalty of customers. Thus, improving the service system and provide quality service for customer can bring better development for Amazon.
 
Conclusion 
This essay takes the Amazon as example and uses the SWOT analysis to show the important of making right organizational strategy and decision. The results of this investigation show that there are various strengths and weaknesses. Amazon also faces with many threats. According to the SWTO analysis, Amazon’s made some inappropriate strategies and decision. Amazon free shipping strategy and promotion strategy makes Amazon.com increased sales but gain low margin and would be a challenge in the long run. Customer relationship management strategy has allowed Amazon to gain customer loyalty. 
The findings of this study suggest that Amazon should change some strategies to meet the challenge and make full use of the external opportunities and internal strengths. First, innovation strategy plays an important affect to Amazon development. The innovation strategy will creates new products and service and help Amazon gain more market and customers. Second, focus on the customer. Improving the service system and provide quality service for customer in order to win more loyalty. In a word, these strategies and decisions will have significance influence to the development of Amazon.
Reference
Amazon.com Inc (2008), 2008 Annual Report, Amazon.com Inc, Seattle, WA.
 
Riedl, C., Leimeister, S., Böhm, M., Yetton, P., & Krcmar, H. (2010). Competing in the Clouds: A Strategic Challenge for ITSP Ltd. Communications of the Association for Information Systems, 27(1), 40.
 
Drucker, P. (1959). Long-Range Planning: Challenge to Management Science. Management Science, pp. 238–49.
Dutta, S. and Segev, A. (1999). Business transformation on the internet. European Management Journal, Vol. 17 No. 5, pp. 466‐77.
 
Evans, P. and Wurster, T.S. (1999). How the New Economics of Information Transforms Strategy. Boston: Harvard Business School Press.
 
Johnson, G. Scholes, K. and Whittington, R. (1958). Exploring corporate strategy
Harlow: Financial Times Prentice Hall.
 
Quittner, J. (2008). How Jeff Bezos rules the retail space. Fortune, Vol. 157 No. 9, pp. 109‐14.
 
Spector, R., & Richardson, J. (2002). Amazon. com: Get big fast. New York: HarperBusiness.


本文是由代写英语论文网www.360xiezuo.com提供,因牵涉版权问题,转载请保留链接!

联系我们

全国免费热线:400-086-0807
咨询QQ:634602927
投稿邮箱:634602927@qq.com