Amazon Business Structure and Industry Focus Areas
Amazon is known as the largest Internet retailer in the world. The company has created a reputation of a store, where people can find almost everything. The diversity of products continues growing, making Amazon a successful competitor in the market. Headquarter of the company is located in Seattle, Washington, where the company operates the global issues (Blank, 287). However, the company has located its offices, development centers, and customer services in many countries where people use the services of Amazon. The variety of products and services presented on Amazon are organized in vertically integrate hierarchy. Nevertheless, due to the dynamic structure it often changes. The industry itself defines such focus areas as products, digital content, AWS, publishing, services, advertising, and sales. All the given factors can be united into three main lines of business, such as Internet services, online retail, and the Kindle ecosystem.
Amazon Management and Leadership Objectives
Amazon management is greatly influenced by its leadership style. The entire work of the company depends on the principles, which shape the company’s reputation and methods of work. If an individual wants to work in Amazon, he/she should first learn the principles of the company carefully and understand their meaning for the firm (Keblis and Chen, 441). The principles are:
- Customer obsession. All efforts are targeted on customers, and the goal is to earn customers’ trust.
- The company prefers long-term value for short-term results.
- Invent and simplify. Amazon searches for new innovations and simplification of its industry.
- Leaders are always right. To be a leader in Amazon means to be a guru in management.
- Insist on the highest standards. Amazon sets the highest standards. Some people believe that they are too high, but it is exactly what makes the company one of the best in the market.
Amazon Methods Used for Business Growth and Expansion
Amazon’s success for business growth can be explained by its transform policy. In order to find new customers or to enlarge the number of already existing customers in some new ways, the company develops new business models. Amazon can run the new types of businesses and continue receiving revenue from the old ones (Gilbert, 175). Hence, every time Amazon experiences some challenges in a new sector, it transforms its business model and adapts to the new conditions of the market. Amazon is always ready to accept something new and is open for innovations and improvements. Conservatism is not the word that describes the company’s direction in business. The necessity to satisfy the customers’ ever-changing demands makes Amazon use transform policy as the main tool of its growth and development.
Amazon’s Employee Focus
Amazon’s leaders pay special attention both to hiring process and promotion. They recognize good performance of their employees and encourage them to work better via promotion and bonuses. Customer satisfaction is the primarily goal of the company. Hence, if an employee knows how to satisfy the customer, he/she will make a good career in Amazon, if he/she does not, he/she will never become an Amazonian (Waldfogel and Chen, 444). The company’s leaders also provide the regular meeting and coaching in order to increase the effectiveness of employees’ performance. Amazon is interested in its employees’ personal and professional development. The more employees contribute to the company’s prosperity, the faster they experience promotions in their career till they reach the rank of a leader, who has enormous opportunities in the company. Leaders are highly valued, they are listened to, and they are able to change the existing business models.
Amazon Organization Model
The current organizational structure consists of 5 departments. Each department is responsible for certain functions. The Marketing Department is responsible for advertising and communication strategies. Department of Operations provides the customers’ services and programs, as well as controls the warehouse operations. Business Expansion Department is responsible for new products and service development (Schepp and Schepp, 79). The Department of Development provides the design of new software and maintains the general growth and development of the company. The last department is named Editorial and it is responsible for web design and editorial content. Besides the five departments, Amazon also has Corporate R&D and Corporate HQs staff. The company is ruled by a Board of Directors headed by Jeff Bezos, the founder and CEO of Amazon.
Amazon Value Proposition
Amazon is one of the best retailers in the market. Its success can be explained by the advantages that the company has comparing to others. First of all, it is a talented workforce, which is shaped by the company’s culture and leadership principles that Amazon strictly obeys. Next, it is the low prices, which make Amazon a leader among other online retailers. The company’s biggest advantage is the variety of products and services it offers. A customer may find and buy almost any product, and it will be delivered in the shortest period of time without distinction of a customer’s location (Stone, 62). The well-organized net between the warehouses provides an opportunity to reduce the transportation cost and to save time of delivering. Besides, the company’s talented employees and well-organized coordination of actions, Amazon pays much attention to its promotion and advertising. The brand name and reputation that was created within the years due to the enormous efforts of the Department of Marketing created an image of a stable and trustworthy company that customers may rely on.
Amazon.com Inc., which is widely known as Amazon, is American cloud-computing and electronic commerce company. In fact, Amazon is the largest online retailer in the US. The organization has its headquarters in Seattle, Washington. Initially, the company was started in 1994 as an online bookstore. However, later, the authorities of the company employed such marketing strategy as diversification, which led to extra products on the company’s offer. Among them, one could find CD and DVD disks, MP3 and video downloads and streaming, various software, electronic goods, videogames, and many others (Waldfogel, 448).
Products and Solutions
As the company diversified, it had a great number of various products that are even not interconnected. Nowadays, on the offer of the company customers can find not only books, Amazon devices, such as Kindle, and accessories for them, but also photo and camera devices, cell phones, other electronics and electronics accessories, musical instruments, music CDs, garden and home goods, computers, and even baby products. Regarding Amazon Solutions, one can state that they are represented as manufacturers and designers of broadcasting Amazon gear not only nationally, but internationally, as well (Lwin AND Williams, 253). Additionally, the company supplies its gears to system integrators and consumers.
Marketing and Go to Market Model
Amazon pays much attention to the classical marketing approach because it is more oriented on the online marketing channels. The company invites its customers using sponsored search, email marketing campaigns, portal advertising, and such initiatives as outdoor and TV advertising (Elliott and Speck, 48). Besides, Amazon views its policy of free shipping as an effective marketing tool, which highlights the company’s loyalty to its customers. The orientation on online channels and customers’ loyalty predetermines the company’s marketing objectives and model of development.
Use of Social Media
As it is known, Amazon was comparatively distant from social media at times. As a result, the company almost missed one of the most popular trends in the world of technology. After that accident, the company hired a director of social media, a man who is responsible for social strategies of the company. A few years ago, Amazon did not use social media in its operation. However, the company realized its main mistake and did everything possible to recover. Nevertheless, though the company started its social media activity in order to be aware of the latest trends and customers’ demands, it still has certain weaknesses in this sphere (Aspray and Ceruzzi, 88). For instance, its Facebook page still lacks information about the company’s latest products, services, and other offers.
As one can see, Amazon is rapidly developing and improving. However, the company uses many interesting issues, which can be considered as its growth initiatives. Thus, the highest segment of the company is its so-called “other” products, which means the products that are not a brand of the company (Aspray and Ceruzzi, 90). However, one cannot under-estimate Amazon´s cloud-computing business, which makes great contribution to the Amazon´s growth. Regarding territorial growth, but not only the growth in products and services, one can see that the company initiates to expand its international territories, though the company has been known worldwide long ago.
Conclusions about Opportunity for Success in the Future
It can be stated that Amazon is a very successful and famous company worldwide. Though the company is very successful today, it does not mean that its authorities should refuse from making efforts towards further development and improvement. Due to the fact that there are some competitors, the number of which can increase in the future, any company or organization needs to constantly improve its weaknesses and develop its strengths (Lwin and Williams, 240). Thus, one of the good opportunities for the company is to develop and improve its online payment system. Besides, Amazon can focus more on its own brand and release more own products. Finally, the company has a good opportunity to open more online stores in many countries worldwide in the future.
Fostering “Innovation, Entrepreneurship and Leadership”
Fostering of innovation is directly connected with customers’ orientation principle. Innovations depend greatly on the customers’ needs. Hence, when Amazon tries to satisfy the customers’ demands it promotes innovations in order to be competitive with other retailers and present better service. Amazon uses all possible ways to foster the entrepreneurship. The company makes deals with the famous brands, such as Kindle. In such way, it increases its popularity and reputation and promotes the new brands. Leadership is a specific issue for Amazon as the company uses its leadership style as a guarantee of maintaining the high reputation among customers (Elliott and Speck, 43). Hence, all leadership principles are developed in the way to increase the loyalty of customers and maintain the good relations.
Demonstrating “Disruptive By Nature” within the Company
Every time Amazon needs to enlarge its market, it uses the disruptive by nature principle. The company creates the new environment and changes its business orientation in order to satisfy the new demands. A good example is the way Amazon started its business. First, it sold only books, but lately it started increasing the variety of products, adding new items and increasing the general amount of products and services (Waldfogel and Chen, 433). Such principle has become the key element of Amazon business strategy, which is successfully applied today.
Lessons Learned – How the Company is Positioned for Growth
Analyzing Amazon as one of the biggest companies worldwide, one can see that it is open to growth and changes. At times, the company made serious attempts to increase its growth and popularity. Amazon employed the marketing strategy that is known as diversification. By opening new opportunities, products and services for clients, the company obviously went to success. The company pays much attention to the customers’ satisfaction and provides the lowest prices among all other online retailers (Stone, 98). Such policy gives the company a significant advantage over other competitors, increases the company’s revenue, and stimulates the future growth.