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Strategic Management and Strategic Competitiveness – Amazon

Strategic Management and Strategic Competitiveness – Amazon

Amazon is an American tech international firm with various business interests comprising cloud computing, artificial intelligence, and e-commerce. In the technological era, the change in globalization has highly affected the company. Additionally, with the application of the industrial organization model and the resource-based theory, it is easy to determine how the organization can earn above-average returns. The mission and vision are vital to the company and tend to impact the whole success of the organization. Moreover, the numerous stakeholder category affects the entire organization’s success. All the mentioned aspects tend to affect Amazon in various ways, particularly its success and thus deserve to be evaluated.


Through globalization, Amazon has been able to expand its business in numerous states around the globe. Amazon is one of the first companies in the world to sell online and has numerous competitors such as Flipkart, Rakuten, and eBay (2). Currently, the company operates in about 13 nations and spreads to one of the largest international online populations. As such, globalization has resulted in the growth and expansion of the company. The company has been able to access new markets and is still continuing to do so. However, Amazon has faced stiff competition, owing to globalization, and this is linked to abridged costs of carious goods as various firms intend to gain a competitive advantage. For Amazon, the competition is more difficult enough in some markets, and at times, it is difficult to hold the company at bay altogether. Moreover, the consumers have the facility to explore pricing prior to deciding which products to purchase from the various competitors.


Technological changes have played a significant role in Amazon’s success and advancement. In the 21st century, the company has done a great job of leading the way on various technological fronts comprising cloud computing, video streaming and gaming, online grocery shopping, and e-reading. The company has been able to use information technology to gain a competitive advantage. The firm uses specialized information systems that facilitate it to attain competitive advantage through greater efficiency in the collection, storage, and analysis of client information. Social media has been an opportunity for Amazon as different sites have helped in providing leads, influencing brand loyalty and cross-promotion, building voice and authority, as well as driving traffic where the company wants it. All these effects have helped in improving consumer services. Additionally, robots have played a big role in growing the company’s productivity since they are easier and faster to use when compared to human beings.

Industrial Organization Model

Typically, the Industrial Organization Model tends to favor the external surroundings with the justification that the industry in which a company opts to compete tends to have a sturdier impact on the company’s performance compared to the decisions made inside the corporation. The market’s structure tends to have an impact on the strategy and the firm’s decision-making. In earning an above-average return, Amazon will have to effectively research the external environment as the basis for recognizing a striking industry and employing a suitable stratagem. For the most part, the company has done this. Typically, the firm tends to be extremely attractive for its profitability potential. The company has competitive prices as well as great and fast service, not forgetting the large consumer pool since it serves various target markets in the world. Typically, Amazon has been able to study the external setting and comprehend the customer needs. The firm wants more speed in order tracking, delivery, and technology ordering options, and an industrial organization model can help.

Resource-Based Model

A resource-based model of organizational performance tends to highlight the continued competitive advantage accruing from production capabilities that tend to be rare and difficult to emulate (3). In earning above-average returns, Amazon will have to frame and implement strategies that facilitate it to exploit its resources and capabilities better. This will enable the company to take advantage of opportunities in the eternal environment better than the competing companies. Once the company resources and competencies are valuable, they will facilitate the firm in exploiting opportunities and neutralizing threats in the external surroundings. Additionally, the company will have to use rare resources and competencies, which means that they will be possessed by only a few and will be costly to imitate. As such, other firms will only be able to get the company’s resources and competencies merely at a cost disadvantage compared to Amazon, which will already possess them.


The company’s vision is to become the most consumer-centric firm, whereby clients are able to discover and find all the things that they could want to purchase online. The firm intends to give the clients the lowest probable costs for the goods. Typically, this vision statement has been a strategic plan for the company’s success. The company has been able to channel its resources into the attainment of the vision. It has been a guide showing the firm where it intends to be at all times. Moreover, the vision statement has played a significant role in guiding the employees, particularly in times of challenges. It has also motivated them to work toward the shared objectives. The workers have been able to buy into the firm’s vision statement, thus bringing them together. Consequently, it has concentrated and aligned efforts making everyone in the organization work towards the same comprehended goal. Typically, the vision statement has acted as a unifying force in the company, thus having a positive effect on the company’s success.


Amazon’s mission is typically to serve clients through physical and online stores and concentrate on price, selection, and convenience. This statement has influenced the company’s success because Amazon has worked in line with the statement, ensuring that all the details of the statement are achieved. Whenever Amazon has gone out of its required track, it has been able to evaluate the mission statement and get back on track. Additionally, the mission statements stimulated the workers to contemplate how their actions could affect the impending organizational success and the positive culture in the firm. Amazon has used the mission statement to judge the success of the firm and determine whether the company goals have been achieved. Even in the face of new demands and other distractions, the company has been able to channel its activities in its mission’s direction. A mission statement tends to reflect the image and exceptionality of the firm, which facilitates the workers to take share ownership, utilize resources properly, and adapt to diverse environmental conditions (1).


The stakeholders in Amazon have played a major role in the success of the organization. The major internal stakeholders of the organization comprise the employees, officers, and directors, as well as the shareholders. The employees have helped in bringing various company projects to completion and worked hard to help attain the organizational goals. Consumers are the basis on which the company succeeds. They purchase the company’s products and inspire suggestions for the creation of new products, which drives the company’s revenues. Without consumers, Amazon could not be in existence. The shareholders have contributed to the company’s success by investing capital in the firm. They tend to have a financial interest in Amazon’s performance. The company’s vendors and suppliers ensure that the firm’s goods are delivered to customers on time. Additionally, the government has implemented laws that help protect the organization. Typically, all these stakeholders provide valued support, resources, and insight.


Al Olayan, F., Ragmoun, W., & Saidi, H. (2018). An exploratory approach of the mission statement: Case of Saudi Arabia business schools. International Journal of Business and Management13(3), 200-210.

Althafairi, B., Alhoumaida, N., Saxena, M., & Almsri, Z. (2019). Case study-AMAZON. Journal of the Community Development in Asia (JCDA)2(2).

Clardy, A. (2008). Human resource development and the resource-based model of core competencies: Methods for diagnosis and assessment. Human Resource Development Review7(4), 387-407.


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Strategic Management and Strategic Competitiveness - Amazon

Strategic Management and Strategic Competitiveness – Amazon

Choose a public corporation, with which you are familiar, from one of the following industries:
Research the company on its own website, public filings on the Securities and Exchange Commission’s Filings & Forms page, Strayer University’s online databases, Strayer University’s Lexis Advance database, and any other sources you can find. The annual report will often provide insights that can help address some of these questions. Use the Strategic Management and Strategic Competitiveness Template [DOCX] to ensure that your assignment meets the requirements.
Write a 4-6 page paper in which you address the following:
Assess how globalization and technology changes have impacted the corporation you researched.
Apply the industrial organization model and the resource-based model to determine how your corporation could earn above-average returns.
Assess how the vision statement and mission statement of the corporation influence its overall success.
Evaluate how each category of stakeholder impacts the overall success of this corporation.
Use the Strayer University Online Library or the Internet to locate and include at least three quality references. Note: Wikipedia and similar websites do not qualify as academic resources.
This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.
The specific course learning outcome associated with this assignment is the following:
Determine the impact of globalization and technology changes, strategic models, vision and mission statements, and stakeholders on a corporation’s success.

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