Company Aims
Today, the building and construction market remains in demand for millions willing to improve their living, working, and other conditions. By building furniture and other items, Amazon Constructions assists clients with architecture and design. It is an area of Amazon that only deals with building-related activities and provides a selection of pre-made projects.
The company’s primary development areas are small projects like guest houses, rest spaces, and garden cottages. These are the company’s main offerings; selling building supplies is one of its other services. On Amazon Construction, all clients have access to the best pricing. The project achieves the company’s goal by giving customers sustainable products (Amazon Report, 2023). In light of this, the key advantages are fostering a solid buyer-seller connection and promoting environmental preservation awareness.
The project is expected to succeed due to its well-elaborated strategic plan. At the initial stage, the company intends to focus on web visibility, that is, its representation and wide Internet presence. The second stage will be the development of new markets and introducing new price segments into the product range.
Thirdly, to achieve its goals, the company intends to promote customers’ accelerated and more profound personal adaptation using all new delivery methods (Monea et al., 2023). It should be noted that the selected strategies reflect modernity and such a high degree of digitalization that, in this parameter, they are comparable to the models of digital business companies. The idea is that from an organizational point of view, the traditional network structure with functional areas and departments is being modified into an innovative model of “domains,” each of which is a symbiosis of operational and product teams.
Competitive Advantage
Amazon has already positioned itself in the market as a corporation striving to provide the best quality services. For its customers, Amazon has always put excellent customer service first. They use technological tools to make shopping easier, in addition to their focus on low pricing, such as a 90-day return policy without receipts and various online and offline services.
Amazon Constructions will obtain this competitive advantage as part of the company. It is challenging to guarantee low costs while obtaining a high-profit margin with its numerous resources, including human resources, knowledge resources, enormous operational scales, and others (Lima et al., 2023). Amazon has nonetheless accomplished this and has a significant negotiating advantage over its rivals.
Since Amazon Construction has America’s largest shop network, it wins on convenience. Large shop networks are crucial because they make it easier for customers to make decisions. Customers pick Amazon Construction because they know they will receive generally less expensive goods at a more convenient location.
The stores and warehouses are expected to be in town areas so each client can buy from us. Moreover, due to its determination to invest in R&D and use cutting-edge technology in daily operations, Amazon has emerged as a market leader (Monea et al., 2023). They can lower inventory expenses and raise the caliber of customer purchases thanks to the logical planning stage.
Additionally, Amazon Construction establishes a control-based ecosystem between its suppliers and clients. Suppliers adore the business because they get sizable orders from a trustworthy, expanding store that is paid in full and without credit (Mutwiri, 2020). Customers choose us because we offer the widest assortment of non-discretionary household goods at reduced costs, all near where they live. As a result, the project has a greater competitive advantage over its rivals, such as Target or Walmart.
Risks and Opportunities
Due to the numerous big and small companies striving for market share, the retail sector is highly competitive. Walmart, Target, and Costco are a few of the major stores that compete with Amazon Construction. Given their substantial financial resources and strong web presence, it is difficult for the project to compete with these shops (Monea et al., 2023).
Amazon Construction’s profitability is at risk because it gives shoppers more choices. Additionally, fierce competition may result in higher marketing and advertising expenses (Lima et al., 2023). Construction businesses must invest in advertising and marketing initiatives to attract clients as they fight for business. This could result in higher expenses, impacting Amazon Construction’s profitability.
Consumer preferences and buying patterns are other factors that threaten Amazon’s overall economic model. Consumer preferences can change for several reasons, including movements in the economy, advancements in technology, and alterations in societal norms. For instance, consumers have paid more attention to ethical company practices and environmental sustainability in recent years (Monea et al., 2023).
As a result, even if the stores they choose to shop at alter more, they could be more likely to do so. If Amazon Constructions is unaware of these shifting attitudes, it risks losing many customers. Nonetheless, the project cannot disrupt the industry as it aims to adjust its products to the customers’ needs, specifically in pricing and quality.
Growth Opportunities
The business can still enter new markets. Amazon Constructions has several opportunities due to its global expansion, including the ability to enter new markets, diversify its revenue streams, and expand its clientele. By expanding into new international markets, the project can benefit in several ways (Monea et al., 2023). Moreover, through these e-commerce platforms, the business can boost consumer loyalty and improve revenues.
Given its size and resources as a part of the biggest online retailer in the world, Amazon Construction has an advantage when it comes to putting money into and growing its e-commerce business. To fulfill online orders, the business can use its current physical infrastructure, such as its network of stores. Compared to retailers who only engage in e-commerce and must invest in warehouses and logistics infrastructure, this gives them a competitive advantage.
New Product
As a new project, Amazon Constructions will allow customers to select building materials and other related objects online and in-store. It will be innovative in that the platform will heavily rely on the clients’ interests and help them achieve the desired outcome. Such a feature can be realized via the customization function and the augmented reality (AR) implementation. Hence, the project perfectly fits Amazon’s central capability – human-centered approach – as it strives to provide customers with the best purchasing experience in the online space.
Target Segment
Currently, Amazon Constructions’ target audience is construction companies, building materials and equipment manufacturers, and companies engaged in repairs. The project’s primary target audience is urban residents aged 25-35, non-professionals in the repair field. They always look for innovative and unexpected solutions that save time and money. Moreover, these people are interior designers, industrial designers, developers of construction projects, or individuals engaged in construction or repair.
Blue Ocean Strategy
Amazon Construction ensures that its product offerings are produced and marketed to provide great utility for customers and consumers in its marketplaces. In addition, it guarantees that the product offers are priced fairly based on their nature and other qualities. This pricing plan is maintained to appeal to the broadest audience possible, draw in new customers, and expand into existing consumer segments.
The company assures that it covers the costs of operations and production after securing the model’s revenue elements in the sequencing to profit from its business (Paes et al., 2021). The business climate, consumer market, and acceptance of the products in the blue ocean region are all evaluated by Amazon.com Inc. for any barriers or challenges. To prevent Amazon.com Inc. from achieving its objectives, the corporation removes these barriers and impediments earlier in the process.
Projected Sales
Despite having a faultless reputation, the corporation experienced significant losses in the preceding fiscal year. For several reasons, net income dramatically decreased compared to the previous five years (“Amazon report,” 2023). Due to the launch of Amazon Construction, sales are anticipated to rise by over 50%. The project’s strong positioning and respectable value offer are meant to increase sales. It is therefore believed that the company will be able to cover its net loss in less than three years by increasing sales (“Amazon,” 2023).
However, it still depends on how well and for how long the project lasts in the market. It means that the construction business is dynamic and fiercely competitive, necessitating ongoing adjustments to development and financial frameworks (“Amazon report,” 2023). Ultimately, the increase in sales will result in higher tax costs.
Speaking of the projects, total performance also depends on economic profitability. According to Amazon’s return on investment 2010–2023 article (n.d.), the company’s ROI was 6.51% in 2023. Although it is three times lower than five years ago, the shift is insignificant because of inflation. As a result, it suggests that the launch of Amazon Constructions may increase ROI and draw in additional investors.
CSR Plan
For Amazon Construction, social responsibility is an integral part of daily work and one of the priority areas of activity. Our understanding of social responsibility is compliance with the principle of responsible business conduct and active participation of the company in the life of society. By pursuing sustainable initiatives, organizations can expand their regions of presence and strengthen their position in the market (Wickert & Risi, 2019).
Within the framework of external CSR, Amazon Constructions will focus on participation in environmental projects. Since the project aims to produce sustainable products, it will launch the initiative to restore old furniture. The company is expected to set up boxes where people can give their old furniture away for either disposal or restoration.
Internal responsibility includes: workplace safety, competitive wages, employee insurance, the possibility of professional growth, and implementation. In these terms, Amazon Constructions seeks to create a favorable environment for employees’ professional development, aimed at building long-term relationships. In addition, it will increase staff involvement and commitment by introducing rewards and other bonuses (Wickert & Risi, 2019). In general, thanks to the holding of events, an active public and social position, and a well-built internal and external brand, Amazon has increased the trust of its employees and consumers, allowing it to remain number one in its industry.
DEI Plan
The opinions and expertise of employees from a wide range of backgrounds are essential to Amazon’s ability to develop for the benefit of our customers. We try to place diversity, equality, and inclusivity (DEI) at the forefront of all we do because diverse teams enable us to think larger, bolder, and better (El-Amin, 2022; Morukian, n. d.). The company already has a built corporate culture of DEI; hence, Amazon Constructions will be perfectly incorporated into it too (Morukian, n. d.). In addition, it also fits the overall strategic project’s plan as it will provide products and services to different customer groups and attract workers from different backgrounds.
Senior managers should first consider their individual and collective point of view, identity, values, and culture; how the experience of power and privilege can affect their approach and effectiveness, and the effectiveness of others. They will also view how the dynamics of DEI can affect their market and business. This will help them set the direction, ensure consistency, and commit to DEI initiatives in the workplace or other types of organizations.
References
Amazon report. (2023). Marketline. Web.
Amazon return on investment 2010-2023. (n. d.). Macrotrends. Web.
Amazon: 2022 net loss was likely a one-off. (2023). Seeking Alpha. Web.
El-Amin, A. (2022). Implementing diversity, equity, inclusion, and belonging in educational management practices. IGI Global.
Lima, M. F. B., Souza, A. N., Teixeira, D. E. (2023). A SWOT analysis of AWH project implementation in the Brazilian Amazon as perceived by affordable housing stakeholders. Forests, 14(3), 594. Web.
Monea, A., Santiago, M., & Smith, P. (Eds.). (2022). Amazon: At the intersection of culture and capital. Rowman & Littlefield Publishers.
Morukian, M. (n. d.). Diversity, equity, and inclusion for trainers: Fostering DEI in the workplace. American Society for Training & Development.
Mutwiri, W. (2020). Amazon business information systems. Data acquisition and management in its value chain. Bod Third Party Titles.
Paes, M.X., Campos-Silva, J.V., & de Oliveira, J.A.P. (2021). Integrating circular economy in urban Amazon. NPJ Urban Sustainability, 1, 29. Web.
Wickert, C., & Risi, D. (2019). Corporate social responsibility. Cambridge University Press.