Amazon intends to enter the global market. According to the expert’s point of view, the company takes small steps for the accomplishment of the goal. A couple of years earlier, the company introduced the idea of creating a global logistic network, however, only now it takes steps towards the fulfillment of the aims. The primary purpose of the paper is to evaluate how the proposed plan relates to the actions of Amazon and examine the IS strategy of the company.
Amazon’s Plan
The pivotal objective of Amazon is to extend the borders of the market and to ease the product flow during peak periods in a year, such as Christmas. In 2013, the company introduced the expansion strategy (Soper, 2016). Amazon aimed to cooperate with China and India to create a global delivery network. According to the aggressive plan, the company wanted to become a rival to Alibaba and FedEx. It worth stating that Amazon, as well as Alibaba, are the companies that aim to take the dominant position in the commerce market (Soper, 2016). The Amazon plan suggests an increase in the number of shoppers by 2020.
The organization highlights that its aim is to serve more than 900 million customers in countries worldwide (Soper, 2016). In accordance with the report, sellers will do not need to use FedEx or DHL, as Amazon can do it instead. The organization uses the third-party carriers to create the international network, and after Amazon reaches the needed level of the development and confidence in the global market, the company will be ready to compete on the market without the carriers (Hecht, 2011). For the company to meet the objectives, the organization shifts the attention towards the cloud service. With small steps towards the accomplishment of the goal, the company implemented the changes and approaches into the working process successfully, and it makes Amazon one of the most profitable and advanced organizations in the commerce sector.
Porter’s Model
To get a better understanding of the success of the Amazon strategy plan, the company’s objectives should be analyzed through Porter’s model. The company offers a broad range of products from books to technical devices. Amazon has control over the suppliers and can affect them on the questions regarding the improvement of the peculiarities of the products. However, the drawback is that there is a chance that the suppliers of Amazon can decide to sell the products directly to the customers, and that is the company can be in threat if the suppliers will enter the market.
The company has a lot of buyers around the world. However, even if the company will lose a couple of customers, it will not influence the work of the organization. Amazon is considered to be a trusted and reliable platform where customers can buy whatever they need online and, in addition, for a very reasonable price.
The threat that the new companies will enter the business is a significant factor that should be taken into account by the managers of Amazon. That is, the strategies of the companies are directed to the improvement of the shopping experience. The customer-centered approach is the guiding power in the work of the corporation. It should be pointed out that even if other companies enter the market, they will face a tense competition.
Amazon is a popular website that attracts a lot of customers. The users can buy everything in one click, 24/7, and be sure that the delivery will be safe and on time. Highly professional specialists, experienced staff, lower prices, and a variety of products are the fundamental factors that contribute to the success of the company. The benefits that Amazon provides to the client prove that it would be difficult to compete with the company in the commerce market.
According to the experts’ point of view, the organization is not likely to face tense competition in the nearest future. However, to prosper and improve Amazon should implement changes in the working process as the society develops every day and managers should evaluate the changes and respond appropriately. As a matter of fact, the company gains customers every year, and this fact proves that the company has chosen the right strategies and moves into the needed direction.
IS Strategy of Amazon
The primary strategies to improve the work of Amazon are the following, namely low-cost leadership, product differentiation, focus on the market niche, and strengthen customers’ and suppliers’ intimacy (Information systems, organizations, and strategy, n.d.). Strengthen customers’ and suppliers’ intimacy seems to be an essential factor in the success of the company. As a matter of fact, Amazon aims to establish relationships with customers and suppliers based on trust, respect, and loyalty.
Amazon has already obtained the market niche, and it would be difficult for the rivals to create a company that can compete with Amazon. According to recent statistics, more than 300 million customers choose this organization worldwide (Schepp, 2009). Amazon is a perfect example of the company that follows modern trends, globalization, adjusts to changes, and, in addition, takes care of the customers. The professional management and advertisement are essential elements that contributed to the company’s success.
The Strategy of Competitors-International and Local
In the modern world, business is influenced by the tense international competition. Due to the process of globalization, customers can purchase products directly from manufacturers from different countries. The countries are getting closer, and now it is not the problem to buy goods from China or India. Internet access brings together customers as well as retailers from around the world. Professional management and advertisement contribute to the development of the global network.
The strategy of competitors-international and local should be directed to the spreading of the influence on the globalized level. This goal can be achieved by the presence of the international market with a variety of goods. The next approach is to create globalized brands. The company should center its attention on the improvement of the quality of the brands, and it will give organizations a competitive advantage in the global market. It worth noting that companies should choose a client-centered approach and establish relationships based on trust to achieve the best results.
Conclusion
In conclusion, it should be pointed out that Amazon is a successful platform that was created for users to enjoy shopping. The client-centered approach and willingness of the organization to make shopping more convenient combining a lot of products on one website make Amazon the dominant company in the commerce market. The strategies applied by the managers of the company contribute to the prosperity and expansion of the market. Low prices, a wider range of products, and services based on trust are the pivotal objectives of the company.
References
Hecht, S. (2011). The new Amazon geographies: Insurgent citizenship, “Amazon Nation” and the politics of environmentalists. Journal of Cultural Geography, 28(1), 203-223. Web.
Lecture notes (n.d.) Information systems, organizations, and strategy. [PowerPoint slides]. Web.
Schepp, B. (2009). Amazon top seller secrets: Insider tips from Amazon’s most successful sellers. New York, NY: American Management Association. Web.
Soper, S. (2016). Amazon building global delivery business to take on Alibaba. Web.