Amazon

Strategic Management
Third year of EBS



Feberherr, Fabian
Gutierrez, Miguel
Rodriguez, Leticia

*This is a short summary of all the tasks, numbers and figures that we have been working in. You will find all the matrix, structures and images in the papers we have to fill in on Tuesday.

INPUT STAGE

1- Mission and Vision

“Our vision is to be Earth's most customer centriccompany; to build a place where people can come to find and discover anything they might want to buy online.”

The mission statement of Amazon is: “to be the Earth’s most customer-centric company, where customers can find and discover anything they might to buy online, and endeavors to offer customers the lowest possible prices”

2- EFE, IFE, CPM

External Factor Evaluation Matrix (EFE):

-Themain opportunities are:
Iclick, look inside the book, search inside the book.*
E-commerce
Changes in the book market
Growing amount of internet users
Merger and acquisition

*: Inventions by Amazon, which should it make easier for customers to find the correct book, the best fitting pages and to buy with only 1 click.

-The main threats are:
Online movies and music streamscompetitors
Ebay, B&N, Walt Mart
Taxes (negative rejection)
Low entrance costs in the online sell market
Lack in trust of internet security

Internal Factor Evaluation Matrix (IFE):

-The main strengths are:
Diversification
Strong brand
Relationships with supplier and customers
Customer service (free delivery, recommendations)
Good infrastructure
Leader

-The mainweaknesses are:
Risk of introducing wrong new divisions
High debts
High entrance costs in the Chinese market
Free shipping is very costly

Competitive Profile Matrix (CPM):

The companies we have chosen to compare with Amazon are
-Barnes and Noble (N&N)
-Border Group

These two companies are the main competitors for Amazon; they are also growing and they want to maintain and develop theirrespective market-share.

3- SWOT Analysis

The information needed for the SWOT analysis are shown in the IFE and EFE matrix in the second point.
The edited four counterparts you can see in the added papers of the figures.
To sum it up, the SWOT matrix reflects that the company has more strengths than anything else. It is a strong company with almost none weaknesses.

MATCHING STAGE

4-BCG, GSM

Boston Consulting Group (BCG):


In the matrix presented upon we can see that Amazon Company should stop investing in “car parts”.
In the other hand, “CDS&DVD” are the main part of the company (located in the star part of the graphic), so the invest on these products should not stop.

The GSM matrix is in the papers given, it shows that our company is located in the quadrantone, because of the market development, market penetration, backward and horizontal integration and the concentric diversification.

5-The I/E matrix and the Space matrix

Looking at the I/E matrix we can see that Amazon company is placed at the point of:
-Internal Factor Evaluation Matrix: 3.05
-External Factor Evaluation Matrix: 2.80

With this information, we can say that Amazon Companytries to make better all the internal factors related with the company.
In the point where Amazon Company is located (middle-up right on the matrix, quadrant four) is a very good place because it is next to the best part on the matrix(quadrant one, one square upper than quadrant four).

In the space matrix (given in the papers), Amazon is also in the best way of it, in the aggressive part,closer to the horizontal axis (industry strength) and a bit far of the vertical axis (financial strength).
This is because; the company has long term debts, one shadow side of the company succeed.

DECISION STAGE

6-QSPM Matrix

In terms of diversification, joint ventures and explore new markets we decided to develop a QSPM-Matrix for Amazon. We used the tasks of the IFE and EFE to suggest...