Strategic Management in Amazon Essay Example | Topics and Well Written Essays - 2500 words

Strategic Management in Amazon - Essay Example In 1995 a company was born called Amazon.com which started out as online bookstore. Amazon.com became very popular in its niche of online books sales due to its large inventory book selection and prices that were below market value. Towards the end of the decade the .com bubble occurred and many e-stores when out of business, only the strongest players survived. Amazon was one of the e-retailers that survived the bubble due to its customer centric approach, great levels of service, low prices and good variety of items. As the 21st came upon us Amazon.com changed its strategic focus and decided to diversify to expand its product selection to other areas outside the typical products at a book store. This report provides an internal and external analysis of Amazon.com during the middle par of the 21st century. It then provides a strategic outlook based on the reality of Amazon in 2008. A SWOT analysis is marketing strategic tools that analysis internal and external factors affecting the operation of a corporation. The strength and weakness variables are used to perform an internal analysis of the company, while the opportunities and threats variables involved and external analysis of the environment (Kotler). One of the biggest strengths Amazon.com has developed over the years is a strong brand identity among consumers worldwide. In its core business division its online bookstore Amazon has a strong reputation for providing value and excellent customer service. The company has able to develop its human capital and organizational knowledge of ecommerce since it entered the market 13 years ago. The company experience has been achieved through a learning curve in which they learned from their mistakes. The firm’s diversification strategy allowed Amazon.com to have the distinction of having the world largest collection of goods and services. Establishing such a wide range of product and service offering increases a company’s changes of