Amazon
e-retailing company is earning success in its targeted market as a business
model innovator. Company introduces innovative services. Amazon develops
customer-driven marketing and business strategies to win maximum share in the
targeted market and be a threat for other competitor companies in that selected
region. According to Jeff Bezos, the current strategies of Amazon Company are
highly customer focused (Birkinshaw & Brewis, 2016). Working in a highly
competitive market generate several issues and challenges. While sometimes
strategies developed at the corporate level also causes challenging
situations.
Background of Amazon
E-commerce company
Amazon is
customer focused therefore they ever try to find out solutions for the
customers' problems. As they introduce new ideas and solution in the market,
therefore, company face high risk. There is the possibility that customer may
not try those new products. While another problem for Amazon Company is that it
introduces new products to benefit customers at maximum as a result of this
there old products get negative effects sometimes. For instance, the company
introduced Kindle electronic book reader that affected the hard bookselling
business of Amazon. Because of innovativeness and unique strategies amazon is
facing criticism in the competitors market as whenever company introduces a new
product competitors make fun of it and predict it a cause to end Amazon
business. Other than innovativeness diverse portfolio is also an issue.
According to case study, a company has a diverse portfolio cannot continue to
get success on all fronts.
Alternatives of
Amazon E-commerce company
There are
several alternatives to these issues. The first alternative is to reduce
products line to reduce diversification in the business portfolio to avoid the
risk of getting the failure in some product. While the second alternative is to
do not make any change and keep on these strategies and business operations. The
third alternative is to increase diversification but just include the most
frequently and highly satisfying products in the portfolio. The first and
second are not possible because these can increase the risk factor.
Proposed Solution of
Amazon E-commerce company
The third
is the best solution to the problem. The company needs to create the database
and select products of different brands that are most frequently required by
the customers. Only bestselling products should be purchased to store inventory.
Only focusing on the highly demanded products will reduce risk factor and help
the company to get success at all fronts.
Recommendations of
Amazon E-commerce company
In the
light of analysis and findings I would recommend that Amazon should pay more
attention to marketing and do not attempt to reduce product lines but in fact,
they should promote their best-selected products through social media and other
marketing platforms that will help company increase sales.
References of Amazon E-commerce company
Birkinshaw, J., & Brewis, K. (2016, 10 12). Amazon:
a master of reinvention. Retrieved 02 02, 2019, from www.london.edu: https://www.london.edu/faculty-and-research/lbsr/diie-innovation-icons-amazon