17/3/2020 Analisi della strategia aziendale di Amazon

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Analisi della strategia aziendale di Amazon

Per scoprire nuovi mondi introduzione
vola con Fastweb Amazon è il più grande rivenditore online del mondo ed è davvero un
pioniere nello spazio di vendita online. Sebbene sia iniziato come una
libreria online, il suo successo nella sua impresa lo ha spinto a
diversi care nella vendita di tutto ciò che può essere venduto online.
Inoltre, Amazon si è estesa anche a livello globale e ora opera in tutto il
mondo attraverso una combinazione di portali localizzati e piattaforme di consegna e logistica globalizzate.

Il modo in cui Amazon ha sfruttato la tecnologia come fonte di vantaggio competitivo e ha raccolto i bene ci delle economie di
scala oltre a sfruttare le sinergie tra le sue risorse interne e i driver esterni ha generato molti concorrenti che mirano a imitare
e migliorare il suo modello di business.

A parte questo, i temi chiave di questo articolo sono che le alternative strategiche che sono state presentate e
raccomandate devono seguire il principio di essere complementari e complementari alle sue competenze chiave .
In ne, questo articolo suggerisce anche che Amazon deve rivolgersi al crescente segmento del commercio mobile se deve
mantenere la sua posizione di leader di mercato.

Valutazione della strategia attuale

La strategia aziendale generica di Amazon può essere descritta come diversi cazione concentrica . Questa strategia si basa sulla
valorizzazione delle capacità tecnologiche per il successo aziendale e sulla base di una strategia di leadership dei costi volta a
o rire il massimo valore per i suoi clienti al prezzo più basso, oltre a avvolgere la propria attività attorno ai clienti in cui
trovano Amazon il portale di riferimento per le loro esigenze di shopping online.

In e etti, questa strategia ha dato i suoi frutti, come si può vedere dal fatto che è il più grande rivenditore online al mondo ed
è stato costantemente il leader nei segmenti di mercato in cui opera. Detto questo, va anche notato che la leadership dei costi
può seguire la legge dei rendimenti decrescenti in cui le imprese che seguono questa strategia scoprono di non essere in
grado di sostenere la crescita o aumentare la redditività una volta che i "frutti bassi" sono stati raccolti.

Continuando la discussione, la strategia aziendale generica seguita da Amazon può essere spiegata usando la matrice Anso
come rappresentato nella gura sopra. Amazon è collocata nel quadrante Leadership dei costi complessivi e la sua incessante
attenzione ai costi è la chiave per comprendere la sua strategia complessiva.

The speci c measures taken by Amazon in pursuit of this strategy include steep discounts for is regular members through the
Amazon Prime program, ensuring timely and even express delivery and at times, waiving o the shipping charges, passing on
the bene ts of avoiding state taxes to the customers thereby lowering the price even further, and an overall strategy based on
making the customer experience as seamless and as smooth as possible.

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17/3/2020 Analisi della strategia aziendale di Amazon
Apart from this, Amazon’s strategy is driven by its sources of competitive advantage wherein it is focus on technology,
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actualizing the bene ts of economies of scale, and leveraging the e ciencies from the synergies between its external drivers
and internal resources have been the cornerstones of its business model. Further, Amazon uses Big Data Analytics as a tool to
map consumer behavior. Indeed, Big Data has been embraced to such an extent by the company that it is now in a position to
market this as another service o ering.

Anyone who has shopped on Amazon encounters a list of recommended products that are picked according to the browsing
history and the mapping of their purchases with that of likely purchases in the future. This has meant that Amazon can sense
and intuit what consumers want and tailor its strategies accordingly. As mentioned throughout this article, Amazon uses
technology to the fullest, which is not surprising considering it is after all an internet-based company.

However, Amazon’s overall cost leadership with little product di erentiation means that its business model has been copied by
“me-too” competitors in a cutthroat price war that has left everyone bruised. Further, its focus on cost reduction at the
expense of product di erentiation means that its products are available on other portals as well and there is no product line
that is exclusive or unique to it.

Apart from this, Amazon does not stock products that appeal to the need for “instant grati cation” wherein consumers make
impulsive purchases and who are impatient and need quick xes. For instance, except for its movies and other digital items,
the other product lines are all not in the category of those that provide this grati cation to the customers.

Having said that, it must be noted that Amazon’s current strategy is also built around the convenience aspect wherein
customers need not go to a physical bookstore or even wait for their purchases to arrive after some time as it has introduced
same day delivery in many countries and is even toying with the idea of using Drones for near instantaneous delivery. Apart
from that, its focus on non-retail product lines such as cloud based services means that it is addressing the issue of
di erentiation as well as its overreliance on cost leadership.

Conclusion
Amazon has popularized “one-click” selling wherein customers can buy anything and everything that is for sale on its portal
with just a click of the mouse. Going by the rate at it, which Amazon is growing, it is indeed the case that its business model is
“clicking” with its customers. Having said that, the need of the hour for Amazon is to sustain its growth rates and maintain the
momentum.

Further, a worrying factor for the company is that it has not made pro ts in many of the quarters over the last three years. A
possible reason for this can be its excessive focus on cost leadership, which means that in the “race to the bottom” its bottom
line is being impacted.

Finally, Amazon needs to adopt a Glocal approach in its international markets wherein it adapts its Global business model with
that of its Local delivery and logistics supply chain. This would indeed create a globalized business value chain wherein anyone
anywhere can buy products anytime and every time.

In conclusion, the future looks bright for Amazon and if it continues to focus on its core competencies and at the same time
expands its global value chain, there is no reason why it cannot maintain its market leadership.

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How Amazon Can Improve its Corporate Strategy

Drivers of Corporate Strategy
Any choice of strategic options must necessarily be in tune with the drivers of corporate strategy. For the purposes of this
article, six drivers of corporate strategy have been identi ed. They are the growth imperative or the need to grow, consistency
with the rm’s internal strengths and resources, being geared towards leveraging and targeting the marketplace strategies,
aligning the strategies with that of its sources of competitive advantage, and taking into account the longer term as well as the
shorter term pro tability aspects.

Identify Core Competencies and Refocus

As the preceding discussion makes it clear, Amazon has its task cut out in terms of the next ve to ten years. It has established
a market leadership position worldwide and hence, it must now turn its attention to the next evolutionary step. Indeed, its very
success can be its undoing as in the quest for market dominance; it is diversifying too much and expanding without a clear and
articulated strategy.

Therefore, it must now identify its core competencies and target them ruthlessly. For instance, its foray into the Tablet
computer market with its Kindle Fire device has been a failure and hence, it must now move to eliminate this and other kinds
of non-core diversi cations.

The rule of thumb for any rm is whether its various strategies including market entry, product ranges, and services o ered
are complementing and supplementing its core competencies. In other words, rms must ensure that when they diversify or
integrate, such forays complement and supplement their core business strengths. This means that Amazon must identify its
raison d’�tre of existence and refocus its strategies accordingly.

Diversify into Cloud based Services

Perhaps there can be no better strategic option than expanding and diversifying into the cloud based business. As cloud,
computing is set to emerge as the hottest trend of this decade and along with the other trend of the increasing usage of Big
Data by marketers, Amazon can clearly establish itself in these segments and attain market leadership positions.

As mentioned earlier, any strategic alternative or option must satisfy the complementary and supplementary imperatives.
Considering the fact that Amazon is built on the online platform, cloud based services would be an extension of its core
competency and would be complementary to its existing business model.

Indeed, Amazon is following this strategy through its AWS or Amazon Web Services wherein it o ers a suite and portfolio of
services to the SMEs (Small and Medium Enterprises) that include data management, storage space, hosting services, and
other cloud based services. The expansion of AWS would be in tune with the drivers of the corporate strategy as identi ed
earlier including the growth imperative, expansion of the customer base through diversi cation, consistency with its internal
resources, and entering a market segment that is recording shattering growth rates.

However, there are some drawbacks to this strategy as well and they include entering an untried and untested market, basing
its strategy on technological trends that have a shorter life span, and sustaining returns from an initiative that is high
on capital investments. Having said that, it must also be noted that Amazon can also develop a complementary Big Data
service wherein it o ers rms and companies access to its Big Data mining and analytical tools. This can be in addition to the
expansion of AWS and these strategies can serve as bu ers for each other in case either fails.

Expand Globally
1. In order to grow quickly and actualize economies of scale as well as leverage synergies, Amazon needs to expand
globally. Though in its current business model, it does indeed cater to a global audience, it must also setup local portals
in the countries in which it wishes to enter. For instance, Amazon now has dedicated portals in many countries including
India and this model can be followed in other countries as well. Further, it needs to adopt a Glocal approach wherein its
core global delivery model is adapted to the local conditions thereby actualizing a merging of the global and local or
Glocal.

2. Next, the speci c regions that it can target and expand into are the Scandinavian countries where the populace in those
countries are highly connected as well as have high incomes. The twin combination of high rates of penetration of the

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internet and the high disposable incomes is a sure way of garnering more business.
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3. Third, it must target both the BRICS (Brazil, Russia, India, China, and South Africa) markets as well as the MINTs (Mexico,
Indonesia, Nigeria, and Turkey) markets as part of its global expansion strategies. As the former have already arrived on
the global stage and the latter are being touted as the next emerging frontier for western businesses, it makes sense for
Amazon to aggressively target these markets.

Conclusion
Therefore, following the points made in the preceding discussion, Amazon needs to diversify into areas that are higher margin
ones. A possible strategy would be to ramp up the cloud-based o erings that it has with its AWS. Of course, as this article
suggested earlier, such diversi cation must not result in strategic blunders such as its introduction of Kindle Fire. Therefore, it
must diversify for growth and pro tability and at the same time not lose focus over its core competencies.

Apart from this, Amazon can tap into the increasing sales from mobile commerce as well as focus more on its Kindle eBooks
segment. Considering the fact that sales from its Kindle division were for the rst time higher than that from its other divisions
in the recent few quarters, this makes for sound business strategy. Complementing this with mobile commerce would drive its
pro tability in the future.

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Cutting Costs Strategically

The business environment today has become extremely competitive.
Companies are not only facing competition from their local competitors but also from global ones. Di erent economic and
geopolitical factors make global supply chains necessary. The problem with having global supply chains is that operations
become broad and complex. It is much easier to manage operations located in the same geography rather than those located
in multiple countries.

Rising costs and increasing competitiveness are making it mandatory for companies to cut costs. Corporations also
agree that up to 25% of their expenditures are wasteful in nature and could be eliminated. The problem is that they do not
know which 25%? Cutting the wrong kind of costs can lead to a decline in quality or customer service, both of which are sure to

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re ect as declining sales in the near future. In this article, we will understand the concept of strategic cost cutting and how it
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adds value, especially to global supply chains.

The Problem with Cost Cutting

Cost cutting can be very ugly if proper attention is not paid to how it is done. For instance, cost-cutting can lead to job losses. It
can also lead to suppliers not being paid on time and so on. The common link in ugly cost cutting is that the company tries to
bene t by undermining somebody else�s interest. In the short-run, it might appear that every dollar saved will directly add to
the bottom line. However, in the long-run, one will see the quality of products and services dropping drastically. Thus, cost
cutting if done incorrectly can cause the revenue of the company to fall. The damage done could be severe if the company
begins to lose loyal customers. The cost of acquiring loyal customers is increasingly high nowadays!

Competency Based Approach

Costs should not be blindly cut. Instead, cost cutting should follow a strategy. That means that every single cost reduction must
be a step towards achieving a larger goal. The common goal that most successful companies pursue is when they decide to
align with their competencies. Large multinational companies do a lot of things. For instance, consider a company like Nike. It
is in the business of marketing sportswear. However, the company does not manufacture any of the products it sells. The
company identi es itself as a marketing company. All the other functions which do not align with this competency are
outsourced. The key thing to note is that Nike keeps its marketing department extremely well-funded. The core competencies
are provided the resources to be the best in the global marketplace. Other less strategic tasks are outsourced to cut costs. This
enables Nike to cut costs where things matter less and to redirect the nancial muscle to future investments that will allow the
business to thrive and to grow even faster.

What is a Competency ?
A competency is a di cult thing to de ne. The di culty is due to the wide nature of qualities that can be included in the
competency. It could be related to people, technology, know-how or processes! It is something that the company excels at
relative to its peers. Every company must necessarily have a competency. It is not possible to survive in this cut-throat
marketplace without having some core competency. It must be recognized that competencies are all about focus. Companies
can have a handful of competencies at most. If you have a list of competencies, then you probably have not de ned your
competencies right!

The Tradeo s
Strategic cost cutting means that the companies can di erentiate between the costs that they need to incur to survive. This
would companies can identify mundane expenses like electricity, fuel, accounting costs, regulatory costs, etc. and contrast it
with costs related to competencies.

The idea is to funnel all the money towards competency building and be as lean as possible in other expenses. Overheads
must be identi ed, and incessant cost-cutting must be undertaken in those elds. However, at the same time, the
competencies that allow the company to outmaneuver the competition should be developed over the long term regardless of
the costs.

Disadvantages of Strategic Cost Cutting

Higher Management Buy In
Strategic cost cutting is a decision that needs to be made by the entire organization. The top management has to be involved
in this approach. The middle management can execute this strategy on their own to some extent. However, they will have to
interact with the other areas of the organization which is not within their control. This is where strategic cost cutting would fail.
An AVP or a VP cannot implement this strategy by themselves. Instead, this strategy would only work if the decisions are driven
from the top i.e. from the CEO or the board of directors themselves. Getting a buy-in at that level is not very easy. Hence
relatively fewer companies indulge in this activity.

Time Frame
Strategic cost cutting does not work overnight. It takes years to build competencies that outmaneuver the competition. The
problem is that most companies run with the short term in mind. They are only focused on their quarterly or annual results. If
immediate cost reduction is the objective, there are huge limitations as to what this approach can achieve.

To sum it up, organizations must never cut costs in their core areas. They must identify administrative and non-critical areas
and make the organization as lean as possible by focusing on those areas.

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