Amazon Essay Example | Topics and Well Written Essays - 3000 words

Amazon - Essay ExampleThis means that the alliance has successfully attracted the future(a) championship for itself. The teenaged generation will continue using the online retailer through and throughout its life because they have had a practiced experience with the bon ton. This is one of the corkingest assets of Amazon.The company is to a fault adopting cost leadership strategy with great success. The shift in the policy came after 2001 as it was the time when company decided that it has gained enough clientele to follow a cost leadership strategy. This strategy is working and it is expected to work in future as well. This is because in future more online retailers will come and competition for Amazon is increasing. The future competitors will come up with new innovations but the only elan through which the new competitors can be fought is through cost cuttings. Any new competitor will not be able to fight with Amazon in future if the company offers excellent services at lowest price. Amazon is also currently trying to pursue a long verge strategy and this is a good approach. The company should not focus on short term profits rather it should capitalize its brand place in a better way. The company is still in the growth phase therefore it should follow a growth oriented strategy. The lower profits in the short run can be accepted in favour of long term growth. The company is focusing on customer felicity and retention, according to the case. This strategy is also commendable as customers be the main source of revenue enhancement. Amazon is cognize to be customer friendly and this should remain the case in future as well. Customer fundament of the company is strong and this shows that customers are responding to the policies of the company. There are also certain problems in the long term strategy of the company. The company has not accumulated enough capital that is should have and it is not prepared to eccentric any unseen economic disaste r. Any unexpected economic problem can drive the company out of business and this is serious concern in the short run. The lower profits of the company through services are also a concern. The company should try to earn more and more revenue through advertisement. This is an area where the company is lacking. Google and Yahoo are making use of their brand name and front line to earn massive advertisement revenue. Amazon should do the same thing and should attract companies by marketing places on its websites. This is an area where the company is lagging behind and more can be done in this regard. Long term growth strategy is good enough but short term cash accumulation should also under focus. Question 2 Turnaround strategy refers to a set of step a company takes in order to rejuvenate its business that was previously not working in a desired manner. Businesses when facing serious problems are forced to think antithetically and come up with strategies that can bring new life to their company. Turnaround strategies help the company change its normal manner and do something in order to perform better. Turnaround strategies involve reallocation of resources and the most common resource that is reallocated is the management. Companies are sometimes faced with problems that can only be solved by complete overhauling the way the business is run. Amazon is facing problems from its competitors and although the company is enjoying a first movers advantage, still competitors are quickly catching up. This is a problem for the company so turnaround strategy will let at solving the problem of increasing competition. The company should start to think in a different way in order to save itself from the increased competition. The company should immediately turn its focus on its core activity and that is online