Amazon Business Strategy Essay Example | Topics and Well Written Essays - 2000 words

Amazon Business Strategy - Essay Example Amazon.com targets three main audiences for its services. First, the company targets those consumers that value low prices, convenience, and a wide selection. The second target of Amazon.com is those sellers, who wish to make their sales through the Amazon.com platform, using the company’s infrastructure. Additionally, Amazon.com targets the enterprises, which wish to outsource technical capabilities to Amazon.com. In this case, therefore, the business it can be deduced that Amazon.com has three major business models for each category of its target customers (Johnson, Whittington & Scholes 2011). Amazon.com has a distinct business strategy, which has helped it to maintain the top position among the online retailers today. However, over the years, the company has adjusted its business model in order to increase its level of competitiveness in the market. Since the year 2007 to 2009, Amazon.com has adopted new aspects in its strategy, which have contributed to its sustained succ ess in the market. Therefore, the company introduced new business units, which it deemed relevant to its customers, and which it considered were capable of increasing company productivity and customer satisfaction. When Amazon.com was founded, the aspect of growth was core to its business strategy. Nonetheless, the company seems to have upheld the concept of growth, as seen in the further advancement and development of its business strategy. Today, there are different new business units that were adopted by Amazon.com and integrated in its business strategy between 2007 and early 2009 and these are still important to the company, as they have considerably led to a boost in the company’s productivity. First, in the year 2008, Amazon.com increased the number of its fulfillment centers. A major addition to the existent fulfillment centers was developed in Hazleton, PA, while another one was established in Arizona (Johnson, Whittington & Scholes 2011). This move by Amazon.com to add more fulfillment centers would benefit the company in various ways. Most importantly is that Amazon.com would be able to serve more customers, since the increased number of fulfillment centers increased the capacity of commodities, which the company could store for shipment to customers. Additionally, Amazon.com in 2008 launched the â€Å"Frustration-Free Packaging† (Johnson, Whittington & Scholes 2011). This kind of packaging reduces the overall amount of packaging materials used. This is advantageous to both the company and its consumers. To the company, this initiative saves costs, as less material is used for packaging. On the other hand, this makes the customers of Amazon.com to experience a great shopping experience. The frustration-free packaging is designed to be opened easily without a knife or struggles, while protecting the products inside, thus reducing customers’ wrap rage. Additionally, this packaging is recyclable. This initiative has been widely wel comed by most Amazon.com customers. This therefore, boosts customer loyalty to the company, which is paramount for increased company success. Technology is another core strategy, which Amazon.co has continually embraced. Between 2007 and 2009, Amazon.com has enhanced its technology levels by introducing new technological business aspects. First, in 2007, Amazon.com developed Kindle; an e-book reader device,