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Strategic Planning Amazon.Com Case Study

599 words - 3 pages

1. History Background & DevelopmentJeff Bezos was researching the Internet in the early 1990s when he realized that book sales would be a perfect fit with e-commerce because book distributors already kept meticulous electronic lists. Bezos founded Amazon.com in 1994. After months of preparation, he launched a Web site in July 1995 and had sales of $20,000 a week by September. Bezos and his team kept working with the site, such as one-click shopping, customer reviews, and e-mail order verification.Amazon.com went public in 1997. Moves to cement the Amazon.com brand included becoming the sole book retailer on America Online's public Web site and Netscape's commercial channel. In 1998, the company launched ...view middle of the document...

com reported its first profit ever.SWOT Analysis2. Strength· Global presence· Inventory provided on consignment· Location of businesso No sales taxo Close to distribution centerso Desirable area will attract employees· Quality technological processes and procedures· Repeat customer'sWeakness· Lack of marketing expertise· Undifferentiated products and service (i.e. in relation to competitors)· New area of business/ management lacks experience· Rapid growth· Has yet to make a profit3. Opportunity· Internet is a developing market.· Mergers, joint ventures or strategic alliances· Move into new market segments that offer improved profits· International market· Use brand name recognitionThreat· Competitors· Price wars with competitors· Changing tastes of customers4. Evaluation of SWOT AnalysisAmazon has a great opportunity for growth and to continue to be a leader in the world of Internet shopping. Amazon's huge debt and lack of experience may prove to be disastrous for the company and overall I believe that it's future does not look bright.5. Analyze Corporate StrategyTo be the best online bookstore in the world.6. Analyze Business-level StrategyTo be the best online bookstore in the world.7. Analyze Structure and Control SystemsI was unable to find any reference to this in the reading.8. RecommendationsIf Amazon continues accumulating debt and making little profit it's future is limited. I recommend expansion of this company's product line, paying off the long-term debt, and to remain focused on becoming the best Internet retailer in the industry.

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