Amazon: Changes To The Business And Corporate Strategy (Case Study Sample)
Case 4: Amazon.com Inc.
The case is written from the perspective of Jeff Bezos, CEO of Amazon.com, as he ponders the company's strategy over the next several years. With these major tech players all competing in multiple areas with each other, the case closes with the issue of where to next for Bezos. Which of these areas represent the appropriate strategic focus at a corporate and business level for the medium to long-term, and how might Bezos mitigate the short-term pressure to become profitable, and the anticipation that AWS may become the center of attention for a spin-off at the pressure of investors?
1. How should Jeff Bezos go about implementing any changes to the business and corporate strategy recommended earlier? What changes to structure and process need to take place?
Briefly write your recommendations.
Your recommendations should flow logically from your analyses.
What are the potential caveats (pitfalls) to your recommendations?
Make sure to read the case and use the teaching note as a guideline.
The names of your member
1. How should Jeff Bezos go about implementing any changes to the business and corporate strategy recommended earlier? What changes to structure and process need to take place? Briefly write your recommendations. Potential caveats (pitfalls) to recommendations
Amazon is a retailer, while Amazon Web Services (AWS) has a different customer base and external customers may choose either platform when there are shared services.
Spinning-off the AWS, the company’s cloud computing segment is a viable option to improve cocompetitivenessThe revenue associated with AWS will likely increase as many industries increasingly rely on data as there is growth and demand for cloud computing services. AWS is already the market leader in the cloud computing market and as a standalone business AWS will likely capture a larger market share when there is focus on improving capabilities. The emergence of Althe phabet’s Google Cloud Platform and Azure will increase competition and likely to affect the company’s profitability over time. The challenge then is maintaining and even expanding the market share in the cloud computing services.
AWS reported $ 18 billion revenue in 2017, lower than Microsoft’s cloud service but Amazon has experienced a more rapid growth (Rapier, 2018). Amazon uses low prices as the corporate strategy and lets the users to utilize Amazon as a platform to purchase what they want in a one-stop shop online retail busisss. However, spinning AWS would mean that the business would be more independent to make pricing decisions that make the company competitive and profitable. As such, Amazon may lower the prices slightly. Furthermore, this would require that AWS also maintain a price brand that differs f
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