Реферат: AmazonCom Case Analysis Essay Research Paper AMAZONCOM
Amazon’s customer base has increased dramatically from 180,000 in 100 countries in 1996 to 12 million in 160 countries by mid-1999. In 1998, Amazon began to expand into other product categories. The Company began to sell music products and videos, and within two months of these additions, Amazon became the number-one seller of books, music, and videos on the web. During 1999, the Company further expanded its product line. Amazon now offers toys and video games, electronic greeting cards, electronics and software, home improvement supplies, online auctions, DVDs, and an online mall called zShops. More recently, Amazon has begun to expand internationally (Bartlett, p.21). Next, an analysis of Amazon’s mission statement will be performed.
Mission Statement Analysis
A mission statement should be comprised of, or address, nine essential components: customers; products or services; markets; technology; concern for survival, growth, and profitability; philosophy; self-concept; concern for public image; and, concern for employees. While Amazon does not have a formal mission statement, the basic mission and goals of the Company are evident in the words of Mr. Bezos, “We have one strategy at Amazon.com – provide the customer with the best shopping experience.” Additionally, “?our goal is nothing short of building the world’s most customer-centric Company.” Lastly, “our Company mission is to leverage technology and expertise to provide the best buying experience on the Internet” (Balanced Scorecard, p. 1). These quotes from Mr. Bezos could be combined to create an effective mission statement, as follows: The mission of Amazon.com is to leverage technology and the expertise of our invaluable employees to provide the best buying experience on the Internet. Our goal is nothing short of building the world’s most customer-centric Company capable of providing our customers with the best shopping experience online today, and into the future. An evaluation of the aforementioned mission statement follows:
Essential Component Evaluation Justification for Evaluation
Customers Strong Customers are frequently mentioned and are clearly the focus of a “customer-centric” Company.
Products or Services Moderate Identifies online shopping as service.
Markets Moderate The market is the online community.
Technology Strong “?leverage technology?” indicates that technology is critical for the success of Amazon.
Concern for survival, growth, and profitability Moderate Addresses concern for survival and growth, but not profitability.
Philosophy Moderate Clearly indicates that Amazon wants to be the best.
Self-concept Strong “?best shopping experience?”, “?world’s most customer-centric Company?”
Concern for public image Moderate Clearly want Amazon’s image to be the “best”.
Concern for employees Strong “?invaluable employees?” indicates that Amazon realizes that the employees are essential for continued success.
Amazon’s mission statement does a very good job of addressing the nine essential components of a good mission statement, as evidenced by the above chart, where the Company received a strong evaluation on 4 out of the nine categories, and a moderate evaluation on the remaining 5 categories. The mission statement also does a very good job of “hitting emotional hot buttons.” Using phrases like: “?best buying experience?”; “?world’s most customer-centric Company?”; and “?best shopping experience?”, Amazon strives to stir one’s emotions. Next, the external evaluation for Amazon will be performed.
External Evaluation
The first step in the external evaluation is to perform an external factor evaluation (EFE) matrix, which describes the external opportunities and threats facing Amazon. The EFE matrix follows:
EFE MATRIX FOR Amazon.com
Critical Success Factors Weight Rating Weighted Score
Opportunities
Growing number of e-commerce bankruptcies 0.1 3 0.30
Platform monetization 0.15 4 0.60
Number of Internet users is continuing to rise 0.15 3 0.45
International expansion 0.1 3 0.30
Technological advancements can improve productivity 0.05 2 0.10
Threats
Weakening economy 0.05 2 0.10
US BMV segment experiencing anemic growth 0.15 3 0.45
Increased competition 0.1 3 0.30
Minimal barriers to entry 0.1 4 0.40