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Amazon can be considered one of the most successful companies in the world, as its net worth approaches one trillion dollars. The corporation has been a member of the Fortune 500 for most of its existence, but the last ten years saw it rise meteorically to become a part of the daily lives of many people in a variety of countries and enter the top 10 of the prestigious list. The reason for the success lies in Amazon’s choice of business strategy and the effort dedicated to implementing corresponding policies. This paper investigates the implementation of new approaches by Amazon in the last ten years.
Customer Service Promotion
Dedication to the customers and their comfort and continued patronage is at the center of Amazon’s business strategy. Dudovskiy (2018) describes how the corporation operates with an extremely small profit margin and describes itself as the world’s most customer-centric company, attracting investors with prospects instead of high earnings. The effects of the implementation can be felt in the consumer response towards Amazon, which is now commonly considered the go-to marketplace in the United States for a variety of purchases due to its low prices and quick delivery. Furthermore, the company continues developing new approaches and strategies, such as Alexa and automated walk-in stores, to engage customers more closely and make interactions more convenient for them.
Technological advancement is a significant part of Amazon’s continued success, as the company offers services for which competitors can often provide no alternatives. Singh (2018) notes various technological developments pioneered by the corporation that began appearing in 2012, including warehouse robots, drone delivery, Amazon Web Services, and others. Due to its technical focus, the company can identify promising trends and capitalize on them before competition reduces the returns for any late comers. The strategy is also how Amazon, a retailer, can compete with technological giants such as Google and Apple in areas such as artificial intelligence. In addition, the company has entered the market for video and music streaming, complete with exclusive movies and shows that received high praise.
A robust logistical network is essential for any large retailer, as long or unreliable delivery times can convince consumers to attempt using competing services. Amazon was aware of the issue when formulating its strategy and invested massive amounts of resources into reinforcing its delivery system. Singh (2018) describes how Amazon regularly purchases and constructs warehouses to improve its coverage and organizes deliveries directly from third-party merchants to customers to minimize waiting times. The approach allows the company to relieve the overcrowding of its storage spaces while improving customer experience.
Furthermore, the company has mostly automated its cargo management structure, which would be challenging to direct manually due to the vast volumes of cargo moved by the company, improving efficiency both in and out of warehouses.
Amazon’s success is based on the company’s strategy, which emphasizes customer experience and satisfaction. The corporation offers low prices and quick delivery, and the consumers have responded by supporting its rise into the top 10 of the Fortune 500. The phenomenon would not be possible without Amazon’s investments into technology and logistics, which allowed the company to introduce new services and improve old ones while staying ahead of the competition. The corporation’s case represents an excellent example of successful strategy implementation.
Dudovskiy, J. (2018). Amazon business strategy and competitive advantage: Cost leadership & customer centricity. Web.
Singh, V. (2018). Amazon business strategy: Insights of its operation and investment plan to become a trillion dollar corporation [Blog Post]. Web.