MGMT term paper

Amazon.com was founded in 1994 by Jeff Bezos where it operated as an online bookstore, and its later diversification included selling Blu-rays, CDs, DVDs and streaming or downloading videos. It currently offers an online platform for selling different types of products in the global market. The company operates retail websites separately for different countries, and provides international shipping services to other countries for its products. This analysis is aimed at providing past and present organizational values and capability that defines the company, the financial and market performance and the future prospects (Amazon.com, 2016).  This represents the identity if the firm, its performance and foreseeable future.

Past

1. Persona

Amazon is a multinational e-commerce company and a pioneer online retail platform.  It has global presence and is able to operate globally using localized portals, logistics platform and a globalized delivery.  The company’s values are founded on attracting and retaining the trust of the customer .The long-terms values are accorded priority and these are not undermined by the future values. The leadership of the firm must seek diverse opinions and work to remove any long time misunderstanding. Observing standard by raising the bar which drives teams to deliver high quality services that are customer oriented. The company has always aimed at leveraging technology to gain competitive advantage and leveraging synergies that are achieved between external drivers and internal resources. This gives rise to concentric diversification since capabilities from leverage technologies provide success for business and allows for a cost leadership in the market. Faced with stiff competition, Amazon aimed to always provide high quality services through value maximization. The company’s direction is shaped by a sustainable growth in dynamic market.

1. Performance

The performance outcomes metrics for Amazon have been used to show sales progress, profitability and customer satisfaction. Gross margin and sales have been the past key indicators of performance, with amount of money made or revenue being the company‘s bottom line. Paying attention to the difference between cost of sales and revenue has been important to monitor margin. In 2015, the company had $ 107,006 Million in revenue while the gross margin was 33 percent for the same year.  The revenue for 2016 was $ 135,987 which aligned with the desired need for continuous growth in the firm. The growth rate for subscribers has been important as it shows the company’s online audience which depicts growth trends in the firm. The legacy metrics define social integrity and leadership across the globe. The company had at least 51 percent growth rate of new subscribers which brought the number to a total of 46 million (Morningstar, n.d). For 2016, the number of subscribers had reached 66 millions, which is a significant increment.

• Puzzle

The biggest dilemma facing the company has been how to adjust to enormous growth in the global market in line with the local market. The other issue has been how to adapt to the cultures of the international markets that are quite different from home. These challenges present even a strategic issue of whether to extend expansion of master the new markets first. This also may affect the firm’s concentric strategy, customer satisfaction, rate of subscription and future growth. 

 

References

Morningstar, (n.d).Amazon.com Inc. Financials .Retrieved from: http://financials.morningstar.com/ratios/r.html?t=AMZN

Amazon.com,(2016).Annual Report

 

 

 

 

 

 

 

                                               Appendix

	Strategic Scaffolding Matrix
	Past (2015)	Present (2017)	future( 2020)
Persona	Slogan	Slogan	Slogan
	online retail leader	online retail leader	online retail leader
Performance	Likeness	Likeness	Likeness
	Attracting and Retaining customers	Customer  Satisfaction	Customer value
	Revenue and sales	Profit Margin	Customer subscription
Puzzle
	Y -  concentric strategy	Y -subscription rate	Y - future growth
	X - International growth	X -International growth	X - international growth