Amazon.Com Case Study

Strategic Management

The main area we will look at is Amazons strategic management capabilities, we will look at the External factors that have influenced Amazons stratgey and the Opportunities and Threats this industru poses. We will also look at the strengths and weakenesses that Amazon have to address these threats and take advantage of the opportunites presented to them

Firstly it is necessary to conduct an external analysis of the environmnet that may have influenced amazons strategic management decision. We will look at the PEST analysis model that may have influenced Amazons strategic planning. The main two external factors that influenced amazons strategies were

Political - These factors address legal issues such as trading laws etc. The low sales tax in seattle was one of the factors that encouraged Amazon to set up their first distribution center

Technological Factors - Introduction of new technology can create new markets. The main reason for Amazon setting up an online store was the growth in the use of the world wide web technologies and their ability to offer a flexible service online.

In order to address these external factors we must look at the Strengths and Weaknesses Amazon have to take advantage of opportunites and avoid threats in the industry using a SWOT analysis

Amazon has proven to be a successful industry to date in terms of growth. Thus it possesses many strengths. It has managed to form alliences with many major Internet Players such as Yahoo, excite etc. In addition it has acquired many well established online companies to assist its expansion into different products. It is a well known service provider to Customers and is renowed for its outstanding customer service. It has the advantage of an experienced and highly skilled management team to assist them to adapt to change and have powerful, innovative and flexivle electronic business designs to enable them to react quickly to competitors needs.

However besides