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Strategic Management and Strategic Competitiveness of Amazon Incorporation

             Amazon Incorporation is an organization that offers online purchasing for different products. To become a global leader in the e-commerce industry, the company developed a well-organized management scheme. This assisted it to delegate duties and deal with possible threats and opportunities. This approach, particularly the proper management skills enabled the firm to become the largest corporation in the electronic commerce industry. Various market dynamics continue to change on a daily basis and as such companies must strive remain relevant to these changes.  Therefore, Amazon implemented different place approaches to address the technological advancements and globalization as discussed in this paper.

Effects of Globalization and Technology Changes in Amazon

             The changes in technology had significant effects on Amazon since the company conducts most of its operations online. The organization invested heavily on the technology to remain relevant with the technological changes and trends and to effectively fulfill various needs of its consumers.  Becker (2016) reported that Amazon innovations are impeccable making it gain competitive advantage in the e-commerce industry. Precisely, Amazon introduced one click shopping approach that was viewed as a game changer because the technology enabled the customers to log into the company’s website, click their preferred products and buy them with just a single click (Bergvall‐Kåreborn, & Howcroft, 2014). The company embraced changes in technology that could not be adopted by most organizations across the world. This was regarded as a perfect management move since it made the firm to become the best organization that offers online buying across the world.

            Rise in globalization prompted Amazon to expand its trading territories. Precisely, the widespread of internet made it easy for consumers across the world to buy goods. To tailor its service delivery, Amazon encouraged feedback from its customers (Becker, 2016). This made the company to bring many clients on board and become inclusive irrespective of where the buyers come from. Moreover, this approach fostered the aspect of the global village. Consequently, Amazon Incorporation increased its shipping facilities in a bid to serve many customers in a better way. The shipping prices decreased to allow everybody to access Amazon’s services and the company also strived to ensure that the delivery was prompt. Similarly, Amazon invested significantly on its staff to package and fulfil all the deliveries that consequently improved customer loyalty and increased its revenues.

Applying Resource Based and Industrial Organization Models to Earn Above Average Returns

            The major aim for most companies is to gain huge profit margins. These revenues are earned through proper management and use of various modules such as resource based model and industrial organization model (Becker, 2016). The industrial organization model is founded on the external factors that influence the activities of the company. Amazon has addressed various external factors in a bid to gain huge profit margins. One of such factors is stiff competition from well-established entities such as Alibaba that offer same services as Amazon. Because of this stiff competition, Amazon devised new strategies to enable it attract new customers and retain the existing ones. First, the company began offering discounts to customers who bought goods on bulk (Becker, 2016). This strategy enabled Amazon to attract new customers, increase its sales and profit margins. However, many companies were equally offering discounts for goods purchased on bulk and thus there was still stiff competition. As such, the company introduced alternative packaging methods instead of boxes for certain order. This reduced their packaging costs thereby gaining more profit margins.

            The resource based model dwells on the firm’s internal strengths, as well as, resources for gaining greater profit margins. Amazon had a strong and viable staff structure that enabled its staff to formulate new inventions and innovations. In the past, many complaints about older staff abusing the juniors and interns were reported (Irani, 2015). This not only tarnished the company’s reputation but also reduced its performance. Essentially, the interns capable of inventing new technologies denied the opportunity to do so. To correct this issue, Amazon began treating its workers in a proper manner without considering their age and this enabled the firm to benefit hugely from the innovation and invention of the interns and junior workers.

Influence of Mission and Vision Statement on the Overall Success of Amazon

             Before beginning to operate, companies often formulate missions and visions that assist them achieve their objectives. Amazon’s vision statement is to become the most customer centric company in the world where customers can find and discover the products they desire to purchase online (Iran, 2015). Clearly, this statement indicates the direction the company wants to achieve in the long run and guides workers to understand their ambitions and works towards realizing them. Similarly, Amazon’s mission statement is that the firm strive to provide its esteemed customers with the lowest prices, suitable selection and greatest convenience (Iran, 2015). This mission statement focuses on the needs of the customers in the operations of the company. This propels Amazon to come up with new ways of fulfilling the needs of its customers. Moreover, it attracts potential customers because it indicates that the company promises the customers that they would receive quality services and products.

Effects of Stakeholders on the Overall Success of Amazon

            The ability of Amazon to satisfy the needs of its stakeholders has prompted it to improve its expansion and growth. The position of Amazon as the leader in the e-commerce industry is maintained by how it fulfils the needs of its stakeholders. Essentially, the customers are Amazon’s major stakeholders. These individuals need prompt delivery, reasonable prices, and internet privacy. To achieve these, Amazon has instituted security measure that assure customers that their information is secure. Workers are key stakeholders who demand better pay and favorable working environment. Amazon has established an effective compensation and benefit structures. This payment is dictated by the work that an individual does, thereby improving the productivity of each employee thereby improving the overall success.

            In conclusion, Amazon is a multinational corporation that offers electronic merchandise services. It has formulated innovative ways of creating proper management plan, making it the market leader in the electronic commerce. Essentially, to maximize profit, Amazon used resource based model and industrial organization model to address external elements such as still competition that affect its activities. Using these models has made the organization to become attractive to customers and deliver quality services and products to customers promptly.

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