[무역경영론] Amazon.com 아마존닷컴(영문)

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2011.11.17 / 2019.12.24
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목차: 목 차
1. Introduction—History and Development
Growth of the Amazon
Book selling industry environment
Global Expansion
2. Company’s Environment
(1) The identification of the internal environment

Internal strengths
Internal weaknesses
(2) The nature of the external environment
External environment – Opportunities
External environment – Threats
(3) A SWOT analysis.
3. Amazon’s Business Model
(1) The Corporate-level Strategy
Company’s mission statement
Strategic role of Jeff Bezos
Vertical Integration
Strategic Outsourcing
(2) The Business-level Strategy
Use of Resources
IT as its Distinctive Competency
Low Cost Strategy
High Market Segmentation
(3) The Functional-level Strategy
Decentralized Decision Making Process
Customer-centric Strategy
(4) The Company’s Structure and Control Systems
Company’s Structure
Control System
4. Conclusion—Recommendation

본문내용: 3. Amazon’s Business Model
We defined Amazon’s business model by analyzing each level of strategy Amazon pursue, and how the company’s structure match its strategy.

(1) The Corporate-level Strategy
Company’s mission statement
According to the case study handout, Amazon’s corporate-level managers believe its mission is to become “Earth’s most customer-centric company, where customers can find and discover virtually anything they might want to buy online.” They see Amazon as a technology company, and their goal is to use and develop its technological skills to make more sales of goods and services which could satisfy its customers and allows profit growth. Therefore, the vision of Amazon is to build “an online retailer that is customer-friendly, and offer the broadest possible selection of various products at low price.”

Strategic role of Jeff Bezos
Founder of Amazon, Jeff Bezos played a significant role implementing strategy, representing his company and publicizing Amazon. He flies around the world, encourages employees, and finds innovative and cost-saving solutions. For example, one of Bezos belief is small organizational structure and no communication is needed. Amazon has a Two-Pizza Team Rule which means “if a project team can eat more than two pizzas, it’s too large.” Bezos believes small organization creates innovation and the team can experiment their vision independently.

Vertical Integration
Amazon has built its portfolio by acquire many established businesses over time which can refer to a vertical integration. Amazon explore to new kinds of online retail venture such as purchasing Livebid.com to enter online auctions. Amazon bigger their businesses to the global scale as well. For global expansion, Amazon first enter into English speaking countries by acquire overseas Internet companies that already had strong presence in local domestic market. Acquisition is a way of wholly owned subsidiary and specifically an M&A. By diversify its online venture and market, Amazon realizes cost economies from global sales volume and learning effects from established company to strengthen its business model.

Strategic Outsourcing
Amazon outsources some of its value chain activity to outside companies. Amazon is an online retailer and does not manufacturing the entire product it sells on its websites, outsourcing delivery service as well. Also, increasing number of B&M companies start its own online retail service after Amazon start the business, but they realize the high operating cost. When Internet bubble burst, B&M companies became Amazon associates or formed agreements with Amazon to operate their online store which led Amazon become an IT service company and another source of revenue growth. Amazon offer a consulting service to other virtual retailers which helped Amazon enters into new market segments and improve its IT system by learning. Amazon not only broad their retail ventures but strengthen the customer-friendly features which would enhance its revenue.

(2) The Business-level Strategy
Use of Resources
Resource of Amazon is an intangible asset such as employee, knowledge, and brand name. Amazon gains employees from established businesses in the middle of acquisition process, and transfer to Amazon employees, relocating as working forces of Amazon. These new workforces enable to Amazon to achieve learning effects in many ways and gain synergy. Also, acquisition with small companies led Amazon to make better use of its resources and capabilities. As a result, Amazon improves its distinctive competencies in IT and increase sales.

IT as its Distinctive Competency
The mission statement clear Amazon’s IT act as a source of its competitive advantage, Amazon using it technology and the Internet develops utility of its service. According to the textbook, arrival of new technology often gives a company the opportunity to develop new business strategies. Amazon used the internet and the associated strategies made e-commerce markets possible, to pursue a cost-leadership model and consolidate the bookselling industries. Amazon’s success in the book market as accelerated the consolidation of the book retail industry, and many small bookstores had closed because they cannot compete by price

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