Environment Within Amazon Company
Many employees at Amazon report difficulty keeping up with the high-pressure work atmosphere. However, CEO Jeff Bezos can thank the business culture for the e-commerce giant’s extraordinary growth. Amazon has the commercial capacity to meet the needs of the e-commerce sector due to its work culture.
Therefore, one of the biggest internet markets is Amazon.com. Amazon began as an online book retailer in 1994. Still, it has expanded over the years and now offers a wide range of products, including toys, gadgets, movies, music, housewares, and other essentials. The four main clients that the e-commerce behemoths serve are content producers, consumers, sellers, and businesses.
Additionally, Amazon, the American multinational technology corporation, is one of the biggest in the world. It employs approximately 1.2 million people across 235 sites (Kundu et al. 9). Austin and Atlanta are considered the best areas to work in. Furthermore, Amazon received accolades in 2021 for its exemplary workplace culture, including being named one of the best places to work in Seattle and Los Angeles, as well as being recognized for its best global culture and company outlook.
SWOT Analysis
Strengths
One of the largest retail businesses in the US is Amazon; unlike its direct rivals, such as Staples Inc., Amazon earns up to three times as much profit. It offers media items for instruction and entertainment. Significant acquisitions made by Amazon have contributed to its growth and the speedier delivery of purchased items.
Over the past few years, Amazon has expanded its strategy of reestablishing and investing in R&D, technology innovation, and advanced research institutes. For offices supporting fulfillment, customer support, and software engineering centers throughout North America, Asia, and Europe, Amazon has committed approximately $700 million (Kundu et al. 9). Additionally, input from viewer evaluations and remarks has been incorporated to inform adjustments that can help increase revenue.
Weaknesses
Amazon’s earnings throughout the four years starting in 2006 have shown that the firm has been unable to meet its operational costs. Businesses that outsource their deliveries have led to declining revenues, while Amazon partners receive 40% of their profits for marketing purposes(Rikap 23). According to reports, pricing discrimination may be present in Amazon’s selling regulations. For instance, a DVD’s pricing varies depending on the consumer. This might be considered a competitive and polarizing barrier to internet commerce.
Consequently, more complaints were made against Amazon in 2008 because it forbade publishers from direct selling at a discount from their three 3websites. They did this because Amazon failed to prioritize customers with more purchasing power. Additionally, it reduced the majority of its services for key clients. It has drawn negative attention due to tax evasion in Britain and the US.
Due to its workers’ poor working conditions, Amazon has faced criticism. Their warehouse environment for employees is subpar, and there are several instances of pricing discrimination and anti-competitive practices. Amazon sells most items at zero profit margins to capture the whole market and eliminate the competition. This method is tactical in the near term because it lowers the profit margin over time. Additionally, rivals will implement a differentiation plan to adapt, costing you many clients.
Opportunities
Amazon has several opportunities to adopt and uphold consumer beliefs that support its brand and encourage customer loyalty. Modern technology benefits all their interactions with customers and suppliers, ensuring the company’s long-term viability. Performing enterprises will provide excellent client services that satisfy customers’ needs. Partnerships between the public and commercial sectors will also offer local societies crucial assistance in locating historical literature.
If Amazon wants to decrease delivery times and increase efficiency, it should develop partnerships, make strategic purchases, and establish linkages. For online shopping, Amazon should collaborate with other businesses to boost seasonal merchandise and attract new customers (Rikap2). By offering goods and services that cater to all cultures and religions, Amazon may be able to fill any gaps left by customers. Additionally, in certain nations, such as those in Europe and Asia, where economies of scale are expanding, they may establish additional retail stores. Amazon should consider creating its products, brands, and services tailored to its specific markets.
Threats
Unlike purchasing what they want from neighboring stores, Amazon customers must wait longer for their deliveries. Additionally, the proliferation of other online retailers has made it challenging for Amazon to differentiate its products and services from those of its rivals. The increase in delivery costs has badly impacted the company’s reputation. Additionally, the rivalry has grown due to new ventures, alliances, and partnerships, thus driving up marketing costs. Due to the costly and prolonged delivery times, existing and potential customers are diverted to local retailers. As a result, Amazon’s profit margin shrank.
Additionally, Amazon has faced considerable controversy. For instance, when a customer shops online, a transaction is completed. Customers may have their personal bank information leaked to unauthorized individuals, posing a severe security risk and leaving them with no choice but to purchase what they need from nearby shops.
There are growing worries about how major multinational corporations evade paying taxes. As a result, the federal government will have little choice except to mandate that people pay taxes based on their incomes. In this scenario, Amazon’s profits are expected to drop significantly.
Amazon’s Mission and Vision Statement
Vision
Amazon aims to provide customers with a seamless experience, offering both online and offline services that emphasize convenience, value, and choice. According to Amazon’s vision statement, it aspires to be the world’s most customer-focused business, where consumers can search and discover everything they want to buy online while also working to provide the best pricing (Lezak et al. 102). This vision statement aimed to become the world’s finest e-commerce company, with a focus on workplace health and safety.Therefore, technically, a company’s vision influences the path it seeks to take and the activities it chooses to engage in for a specified period. Amazon’s vision is to dominate the global market while providing customers with an exceptional shopping experience.
Mission
Technically, a company’s mission outlines the measures it believes appropriate and doable to take to realize its vision. In the case of Amazon, the mission statement highlights the appeal of the company’s customer service (Lezak 102). Furthermore, Amazon distinguishes itself from its rivals by highlighting more customer-friendly features and affordable prices.
Amazon’s goal, vision, core values, and a well-developed model of these statements are key reasons for the company’s future success. The values might help ensure that the company stays true to its purpose and vision statements despite the wide range of items it deals with. Even so, the mission statement clearly states what Amazon’s target customers should anticipate. Beyond satisfying the target market’s demands, the service matters. The company’s mission statement focuses on providing clients with the most incredible deals possible on various purchasing variables, such as variety, individual satisfaction, and price.
Amazon’s Main Competitors
Shopify
By offering almost identical and superior services, some internet businesses might provide Amazon with the most competitive opposition. Therefore, Shopify is a fantastic example of such a business. This company provides small and medium-sized enterprises with the services necessary to operate their websites.
Shopify is a large platform, even though it works with small shops to get things for its customers. Shopify now has resources to grow where necessary, thanks to its stock worth of roughly $70 billion (Gawer et al. 7). Although not as wealthy as Amazon, Shopify offers an alternative to the latter.
Shopify aims to compete with Amazon in terms of supply and customer service in the real world. For instance, in 2019, purchasing spent $450 million on 6 River Systems, an intelligent home automation system (Conaway et al. 37). Shopify chose to position itself to compete with Amazon in the shipping market. The data from the researchers also demonstrates that Shopify can build a fulfillment system that can compete with Amazon by successfully providing low-cost shipping to small shops. Many customers would cease using Amazon services if Shopify could offer a similar option.
FedEx
Shopify might not be the only business that can rival Amazon. Other companies, including FedEx and UPS, are steadily improving their competitive position. Initially, FedEx Company’s delivery capabilities were so poor that they struggled to compete with Amazon.
Today, however, to better serve today’s customers, the organization has dramatically upgraded its offerings. It will likely surpass Amazon if it continues to develop at this rate in terms of standards, policies, and services. As a result, many customers will have to leave Amazon. FedEx purposefully created a structure that would directly compete with Amazon.
AmazonFresh is the name of the grocery-buying section of the Amazon online store. The business also offers Amazon Prime, allowing customers to receive their products sooner. Within two hours after placing their orders, Prime members may expect their deliveries (Conaway et al. 65).
Comparing this alternative to other retail buying methods, it offers a quicker shopping experience. Users may use a virtual assistant to seek assistance with their food shopping decisions. To enhance their Amazon user experience, individuals can utilize voice-enabled applications. Because it expanded services and goods, the firm has already experienced consistent development in its online grocery sales.
Whole Foods
Since Whole Foods is a strong brand, Amazon’s decision to enter the industry is a bright move. By releasing 40 private-label products onto the market, Amazon has wholly entered the industry. Faster shipping, excellent rates, and the finest online shopping are all provided by Amazon (Conaway et al. 43). As a result, the business is in a position to become clients’ first option for food shopping. Furthermore, Amazon has acquired a significant number of Whole Foods’ private-label brands. The purchase of these food brands allowed the business to achieve the targeted customer service and quality levels.
Future trends indicate that the rate at which individuals switch to online grocery shopping will accelerate. As a result, Amazon is better positioned to capitalize on the growing number of online customers. Whole Foods are now available on Amazon in real locations.
To provide customers with more buying possibilities, Amazon has now integrated its Amazon Prime program with its Whole Foods offering. Amazon did not close its doors for customers who wanted to buy actual food. Thus, it is clear that Amazon bridges the real and digital worlds, transforming traditional food customers into online buyers. Given that Amazon is integrating all its companies, more customers will likely purchase from Whole Foods due to the convenience of online shopping. People want a storefront where they can fulfill all of their buying demands.
Due to Amazon’s retail approach, which includes sales and other innovations, conventional grocery stores will be forced to compete and adapt. In earlier types of competition, price served as the primary differentiator; however, in modern times, consumers also consider other advantages, such as convenience.
Amazon is more competitive due to the convenience and simplicity of usage (Dutta 42). Amazon hasn’t shut down its physical locations, so it continues to serve the conventional market. Amazon continually improves its offerings and expands its reach in the future. Consequently, the customer’s switch from traditional brick-and-mortar food shopping is genuine.
Amazon is still at the forefront of retail products and services. The firm has made significant investments in technology to support the success of its business strategy. The creation of delivery services and the Amazon Go app has given the business a competitive edge. This demonstrates that the company will continue to generate revenue, as it will ultimately outperform rivals who have not adopted the technology. The business also provides a frontier for other firms eager to enter similar industries. Amazon continues to dominate in retail sales despite fierce rivalry in price offerings because it considers other consumer factors that its rivals do not.
Ethical Issues at Amazon
After parcels were stolen from homes and Amazon purchased the doorbell camera company Ring for over $1 billion, ethical concerns in the workplace began to surface. It seemed like a natural addition to the corporation’s monitoring portfolio and a change. Soon after purchasing Ring, Amazon released the Neighbors app, which enables users to share the footage with their neighbors and local law enforcement. Problems occurred, though, when Amazon refused to say how many Ring cameras it had sold or how many Neighbors applications had been downloaded. Owners of the app started to fear that Amazon’s action was unethical and that Ring was putting the United States at risk by turning the product into a surveillance problem.
Tax avoidance is another ethical transgression committed by Amazon. Amazon has become what it is today because of tax evasion. Once it was established, Jeff Bezos devised a way around the requirement that only physical businesses collect sales taxes after selling products online. According to the Institute on Taxation and Economic Policy, Amazon only received 11% of its about $8 billion annual profits in the previous five years, a third of what it would have received (Edmondson et al. 67). Since then, there have been no repercussions in the company.
Regarding exploiting its workers, Amazon usually operates its warehouse with several temporary recruits engaged via subcontracting. Several temporary workers are hired over Christmas and then unceremoniously fired with little to no notice. There is no proper system for how this happens at Amazon. It has been concluded that the company is looking for the most cost-effective way to complete the task and that using temporary workers is morally acceptable for their needs.
Amazon has guided ethical standards since its preoccupation with the customer rather than the competition, drive for innovation, dedication to operational quality, and long-term planning. Therefore, the company aspires to be the planet’s most customer-focused business, the best employer, and the safest workplace. Additionally, workers’ training should address the Code of Business Conduct and Ethics’ subjects, including how to anonymously contact Amazon’s third-party Ethics Hotline.
Based on the code of ethics, at all times, employees must abide by all applicable laws, rules, and regulations. Nonetheless, employees should try to prevent conflicts of interest, and those who think one could exist should immediately contact the legal department. Company employees are not permitted to trade in stock or other securities.
At the same time, in the custody of material nonpublic information, disclose material nonpublic information to third parties without the company’s express permission, or recommend to third parties that they engage in stock or other securities trading based on material nonpublic information. Additionally, clean, secure, and healthful working conditions are offered by Amazon.com. By adhering to safety and health policies and procedures, and reporting accidents, injuries, and harmful situations, practices, or behaviors, each employee has some responsibility for keeping the workplace safe and healthy.
Amazon Recruitment of Employees
Amazon created a single application for elite talent to expand it to include additional applicants. Candidates can indicate their preferences on Best Fit and be associated with at least two offers. Therefore, the candidates must fill out an application, pass a coding test, and answer questions on the location, team, working environment, technology stack, and other aspects of their desired position. This helps a recruiter determine what type of role would be ideal.
Finally, employee motivation is one of the most critical components of every business. Ensuring staff are inspired and involved in their jobs is a top responsibility for successful companies. Various things impact employee motivation. Exciting projects, work atmosphere, educational possibilities, professional advancement prospects, and money significantly influence it. This piece will cover the topic of money and how it functions at Amazon.
Society’s View of Amazon
Due to the finest customer experience they have created, Amazon is the most popular and largest retailer worldwide. Based on the customer survey, with 9.664 reviews and a rating of 4.12 stars, Amazon shows that most consumers are typically happy with their purchases (Heng et al. 165). Customers who are satisfied with Amazon frequently mention customer service, free delivery, and being a Prime member. Among marketplace websites, Amazon is ranked third.
Amazon Culture
Amazon has a culture where meetings are conducted differently from other businesses. In contrast to other businesses, the views and ideas considered when making company choices are recorded. These papers often have six pages or fewer; these materials significantly increase clarity when discussing helpful information. The meeting attendees study these papers for at least 30 minutes before the discussion. A point from each page is pulled out during this debate and carefully assessed before going on to the next.
Employees who want to contribute or ask a question won’t have to wait until the conversation’s conclusion, when they can forget what they want to say. PowerPoint is frowned upon in this culture because it interferes with the clarity and flow of meetings. Additionally, they prefer workers to support their arguments more than discuss pointless ideas and styles during meetings.
Furthermore, Amazon encourages adaptability in its company culture with the two-pizza rule. Each team must adhere to the requirement that it be small and adequate to be given two pizzas. This idea came into play when the organization’s technical teams were formed because they wanted to keep lines of communication open to avoid knowledge loss. Amazon now applies this reasoning to all of its departments to boost efficiency. In smaller teams, as opposed to more difficult-to-manage big groups, team members feel far more essential and accountable.
Moreover, Amazon employs principles to promote free choice within teams. These principles direct the decision-making process when each team member is presented with a task. Each group receives a list of five beliefs, and their charter details how each doctrine should influence their concepts and methods for completing particular tasks.
Tenets assist team members in determining what matters most when making trade-offs. These principles, therefore, aid people in deciding which value to pursue when they reach a point where there is a conflict between them. These guidelines avoid the drawn-out processes of requesting approval from staff members at the managerial level.
Therefore, Amazon employees are encouraged to think beyond the box. The pressure is on them to respond and not let problems fester. Staff members are encouraged to generate fresh concepts and resolve issues. Unlike other startups, Amazon still has its energy and an unwavering desire for perfection.
Most businesses that have achieved the degree of success that Amazon has have slowly started to retreat and let things happen without exerting as much effort as they did initially. The workers are still as dedicated to their jobs as when Amazon attempted to establish its reputation. A work culture to embrace is the consistency of Amazon.
Also, customer satisfaction is given the utmost attention at Amazon. The business employs professionals who keep track of changing consumer trends and preferences. They appropriately respond to the shift in consumer demand, which helps them win their clients’ confidence and loyalty.
Results are essential to Amazon as a business. Productivity and creativity are at the heart of its work culture. As a result of the company’s preference for small teams, each team member is fully accountable for completing the assigned tasks. Employees may address problems without needing permits that might be denied if team tenets are implemented, allowing them to make decisions that benefit the business.
The secret to Amazon’s success has also been clarity, and it has been shown. Written documentation of company concepts and solutions allows for their transmission across many levels without losing significance or misunderstanding. The same information is available to all employees. In times of need, these written records serve as a reference point.
Recommendations to Amazon
The recommendation for the Amazon company is that it will have its work cut out for it over the next five to 10 years. As a result of its global market leadership position, it must now focus on taking the next evolutionary step. In fact, due to excessive diversification and expansion without a well-defined plan, its success may be its downfall in the race for market supremacy. Therefore, it must decide on its critical skills and fiercely pursue them. For instance, its attempt to break into the tablet computer market with the Kindle Fire device has failed; as a result, it now has to eliminate this and other non-core diversifications.
Moreover, expanding and diversifying into cloud-based businesses may be the best strategic choice. Amazon can establish itself in both categories and achieve market leadership positions since cloud computing is predicted to emerge as the decade’s hottest trend, coupled with marketers using big data more and more frequently. As was previously said, each strategic alternative or choice must meet the supplemental and complementary imperatives. The fact that Amazon was founded on an internet platform means that cloud-based services would be an extension of its core competencies and complement its current business strategy.
Furthermore, Amazon has to develop internationally to get economies of scale, take advantage of synergies, and grow swiftly. Although it serves a worldwide audience under its existing economic model, it must also establish local portals in the nations it wants to reach. For instance, Amazon now has specialized sites in several nations, including India, and other countries can use this model (Aćimović et al. 10). Additionally, it must implement a global strategy that adapts its primary global delivery model to the local circumstances to combine the global and regional.
Finally, the technology method has several disadvantages, such as entering an unproven market, basing its strategy on technical developments with a short lifespan, and maintaining profits from an endeavor requiring significant financial commitments. It should be noted that Amazon may potentially create a complementary Big Data service that makes its Big Data mining and analytical capabilities available to businesses. These methods can act as backup plans for one another if AWS’s growth fails.
Works Cited
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