Description
Learning Goal: I'm working on a business report and need guidance to help me learn.
THE COMPANY IS AMAZON
WEEK 8 ASSIGNMENT - BUSINESS-LEVEL AND CORPORATE-LEVEL STRATEGIES
OVERVIEW
In this assignment, you are to use the same corporation you selected and focused on for the assignments, Strategic Management and Strategic Competitiveness and External and Internal Environments.Research the company on its own website, public filings on the Securities and Exchange Commission's Filing & Forms page, Strayer University's online databases, the Lexis Advance database, and any other sources you can find. The annual report will often provide insights that can help address some of these questions.Use the Business-Level and Corporate-Level Strategies Template [DOCX] to ensure that your assignment meets the requirements.REQUIREMENTS
Write a 6- page paper in which you do the following:- Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether you judge this to be a good choice. Justify your opinion.
- Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether you judge this to be a good choice. Justify your opinion.
- Analyze the competitive environment to determine the corporation's most significant competitor. Compare their strategies at each level and evaluate which company you think is most likely to be successful in the long term. Justify your choice.
- Determine whether your choice from Question 3 would differ in slow-cycle and fast-cycle markets.
- Use at least three quality references. Note: Wikipedia and other websites do not qualify as academic resources.
- Determine business-level and corporate-level strategies for a corporation's long-term success comparable to the competitive environment.
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Explanation & Answer
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Week 8 Business-Level and Corporate-Level Strategies Assignment Outline
Thesis statement: In comparison to its competitors such as eBay, Amazon has high likelihood of
long-term success even within the fast-cycle market.
I.
Business-Level Strategies
a. Cost-leadership is a successful business-level strategy at Amazon. Cost-leadership is
a strategy where organizations produce at low costs to provide acceptable products at
the lowest possible price (Hitt, 2020).
b. Moreover, Amazon has a focus on research and development. The inbound and
outbound logistics are significant to the overall production costs in organizations such
as Amazon.
c. Cost-leadership allows Amazon to provide goods and services to different segments
of its customer base. The company is able to provide consumers high satisfaction
levels through ease of use over its competitors.
d. Economies of scale are important to the success of cost leadership at Amazon. The
company has engaged in high growth strategies in warehousing and logistics which
have provided lower costs per unit.
II.
Corporate-Level Strategies
a. Amazon’s success is largely based on its diversification strategy. Corporate-level
strategies allow firms to have high competitive advantage through selection and
management of various businesses in different markets (Hitt, 2020).
b. Amazon has interests in e-commerce, advertising, and cloud services among
others. As of 2017, Amazon had 37% market share in the US e-commerce industry
(Chevalier, 2021) while Walmart followed second with about 5% market share.
Figures title:
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c. The multiple lines of business at Amazon offer some advantages for sustainability.
The organization has a high performance which increases its value.
d. The company also diversifies to expand into unexploited markets. Amazon has a
propensity for first-mover advantage in various fields. In this way, Amazon looks to
diversify in new fields. This is the case for autonomous vehicles.
III.
Competitive Environment
a. Competition is a necessary element of healthy business environments. According to
Hitt (2020), competitors are engaged with identical markets and offer similar products
or services. Competitors seek to gain an advantageous position in the market.
b. On the business level, eBay has a focus on differentiation over cost-leadership. Since
eBay has a focus on auction approach to buyers and sellers, there is little control over
cost leadership.
c. eBay has a key differentiation strategy in the ability to primarily attract buyers,
browsing catalogues, and making successful purchases. This three-pronged approach
is an important differentiation strategy that has allowed eBay to maintain longstanding status in the online business. Moreover, the company has a focus on
charging sellers.
d. On the corporate-level strategy, eBay applies a diversification strategy. One of the
notable diversification actions has been the acquisition of PayPal, an online financial
service provider.
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e. Amazon has a focus on using a feedback system involving a recommendation
approach. The recommendation system is an important sales approach which allows
Amazon to match consumers to products they are interested in.
IV.
Market Cycles
a. Slow-cycle markets offer long-term com...