Amazons Egalley PDF Download

This essay sheds light on Amazon's organizational environment, stakeholders, business culture, organizational structure, strategies, and value providers. The ample factors of Amazon's organizational environment play a paramount role in Amazon's profound success and unprecedented profitability as a multibillion dollar e-commerce company. "Amazon's key stakeholders are Amazon's investors, employees, directors, owners (shareholders), customers, associates, third party sellers, and the community from which the business draws its resources" ("stakeholder," n.d.). Amazon benefits their stakeholders in a myriad of different ways, such as by having created a slew of stable jobs for Amazon's employees, third party sellers, associates, and suppliers. Also, Amazon benefits communities by giving consumers the opportunity to conveniently purchase from millions of items from the comfort of their own homes twenty-four-seven for lower prices than competitors products. "For the most part, the value of Amazon's stock keeps consistently increasing" ("Amazon.com, inc. (nasdaq: amzn)," 2012). "Amazon intends to retain all future earnings to finance future growth and, therefore, does not anticipate paying any cash dividends in the foreseeable future" ("Faqs," n.d.). As a low cost leader, Amazon holds a significant amount of the market share throughout an exorbitant amount of markets, is set up to run cost-effectively, and heavily invests in research and development efforts to bolster long term financial growth. Amazon's business culture can be defined as a role culture. "A role culture is a culture with a rule of law with clear responsibility and reward system that provides stability, justice, and efficiency" ("Business culture," n.d.). "Amazon's vision is to be the Earth's most customer oriented company. This business model of Amazon.com is based on retaining customers for a considerable number of years -- twelve years by some analysts' forecasts -- in order to develop deep, continuing relationships that will justify the company's heavy investment in its' site" (Weinstein, 2012, p. 33-195). One can conclude that Amazon's business culture seems to be a desirable environment for employees to work in since it punctuates the continual strive for long term growth and success. Amazon organizational structure is a decentralized organizational structure. "This means that the decision making power is distributed and the departments and divisions may have different degrees of independence" ("organizational structure," n.d.). The distribution of power allows Amazon's individual departments to operate more efficaciously without being as greatly encumbered by corporate bureaucracy as they otherwise would if they were a centralized organization. Amazon utilizes a myriad of strategies to enhance and streamline their consumer's shopping experience which ultimately allows them to retain the lifetime value of their consumers. Amazon implements a product differentiation strategy to create more innovative products. Amazon also continues to exhibit a low cost leadership strategy. Furthermore, Amazon offers their consumers excellent customer service, recommends products to their individual consumers based on product recommendation algorithms, offers promotional items for pre-ordering their products, offers free shipping for orders above the twenty five dollar threshold, offers fulfillment and distribution services to third party sellers, and Amazon generates sales revenue from the sales of third party sellers on their website. Amazon also generates substantial sales revenue from authors who publish their eBooks and physical books on their platform. Amazon is also very easy to navigate through, has meticulous product descriptions, has insightful customer reviews, and simplifies the buying experience into being parred down to only a few clicks. Furthermore, Amazon is open twenty-four-seven which augments the level of convenience associated with purchasing products