Strategic business planning consists of several branches that provide direction for the business and address issues related to supply and demand. E-strategy is a set of influences aimed at creating good e-commerce. In the last 2-3 years, the physical demand has decreased significantly due to different factors: pandemic, development of IT technologies, an increase of rent prices, and income taxes. Companies use the power of the Internet to create a profitable, convenient, and profitable platform for the sale of goods and services. One of the companies that have made a practical and working e-commerce platform is Amazon, which successfully took over the market as one of the first.
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Amazon was founded almost 30 years ago as an online bookstore and then began selling many media products: videos, photos, music, video games, and others. The company has successfully integrated a strategy for intelligent use of resources and marketing. The company was formed to create a platform for the convenience of merchants and consumers (Amazon, 2020). The company’s corporate culture is such that people and intelligent management are core aspects of any strategy, which is why Amazon successfully captured the e-commerce market.
Any e-commerce strategy consists of the analysis, formulation, and implementation phases. In the analysis phase, Amazon examines the macro environment and industry structure of the planned products for release. They determine capabilities and whether it can pull the new volume of products. Based on the total stock of resources, primarily cash and personnel, the company formulates current and long-term plans for promoting these services to reach cost recovery (Amazon, 2020). Much of the scrutiny depends on whether the products and work are of any value to the employees. Amazon points to the need to create a good shopping experience during the formulation phase: the company uses a simple and intuitive website interface to do this. In addition, the company supports cost reduction and intelligently regulates how suppliers place their products and in what quantities (Sadq, Nuraddin & Hama, 2018). Digital shopping has taken a leading role in recent times, and Amazon strives to incorporate as many factors as possible for successful communication with shoppers.
Strength & Weakness
Amazon has strengths in legal and social factors to market segments in different regions. The strategy has been built so that suppliers and distributors can minimize tax payments on the marketplace and have access to free competition. It was greatly aided by low inflation and the support of everyone who wanted to use Amazon’s services. The strength of the social aspect is language and temporal accessibility: integrated services allow users to buy and sell products at any time and in any language (Sadq, Nuraddin & Hama, 2018). The number of services offered hardly varies between regions because favorable terms for suppliers make it possible to send goods everywhere. In addition, Amazon’s strength lies in its approach to online commerce, which is realized through consistent marketing: intent, acceptance, and continuation. It means that Amazon focuses not on the product but on the service.
The advantages in sales still do not cancel out Amazon’s few significant disadvantages. As perfect as their e-strategy is, the development of IT technology is continuous, because of which the company regularly invests in it. It makes Amazon’s profit turnover unbalanced and suffers from debt. The supply chain and relationships with distributors constrain Amazon’s freedom of action. It means that maintaining this strategy with multiple taps could dramatically lose the entire profit segment.
Conclusions and Recommendations
Amazon is one of the largest e-commerce companies providing its services. Its e-strategy is realized through the introduction of IT technology, the development of online marketing, and the platform’s convenience. The strategy’s strengths are its economic stability for suppliers through tax bonuses and its social focus. The weaknesses are a massive network of businesses and significant investments in support services with modern technology. In my opinion, Amazon’s strengths are something every company should learn because customer focus is the main criterion of e-commerce. I would hardly use consistent implementation of IT, as there is no significant change between technologies for users, but it significantly increases costs.
Amazon. (2020). Annual report. Amazon, Web.
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Sadq, Z., Nuraddin, S. & Hama, S. (2018). Analyzing the Amazon success strategies. Journal of Process Management. New Technologies, 6, 65-69. Web.