Discussion
The micro environment in marketing incorporates all the actors that are responsible for impacting the overall decision making, performance, and business strategies of an organization (Abdurakhmanova & Rustamov, 2020). It is imperative for organizations to conduct an analysis of their micro and macro environment before the decision making process (Fisher et al., 2020). The Micro Environmental Factors of any organization incorporate customers, competitors, employees, shareholders, suppliers, and others possessing significant impact on the organizational practices and decision making process (Fabus, 2018). Thus, staying intact with the micro environmental factors would enable the organization in attaining organizational goals thereby performing effectively and efficiently in the business industry (Sameer, & Pestun, 2018). This report discusses the micro environmental factors of Amazon affecting its business decision, strategies, and performance. The report also provides suggestions that would help Amazon in enhancing its business areas while operating in the business industry.
Amazon is one of the largest retailers and online shopping websites around the globe. The organization has a huge portfolio and is capable of catering to almost all the needs of the customers associated with its business operation (Amazon, 2022). In addition to offering e commerce businesses, Amazon also manufactures and sells tablets, phones, and TVs under the brand name of Fire (Amazon, 2022). The micro environment of Amazon comprises of customers, employees, suppliers, competitions, and others who might not be directly associated with the organization, however, are key players in the decision making process. Amazon has accordingly designed and developed its policies to consider the impact of each micro environmental factor. Thus, the organization not only emphasizes on development and growth, however but also aims at benefiting the key stakeholders in different possible manners. As a result, amazon continuously aims at enhancing its business operations by adding value for products assisting customers to buy anything under one single roof (Amazon, 2022).
The entire business strategy of Amazon is dependent on one primary goal of addressing the needs and wants of every customer with an exceptional experience. In addition to this, the strategies of amazon are highly driven by its sources of the competitive edge where it aims primarily on technology thereby actualizing the benefits of the economies of scale to a better extent. This strategic goal of Amazon enables the organization in compiling the concepts and ideas, technological research, Innovations, partnership as well as the business strategies that are responsible for purchasing Amazon to severe heights of success in the long run (Cattero & D’Onofrio, 2018). Therefore, the generic corporate strategy of Amazon based on concentric diversification enables Amazon in leveraging its technological capacities and resources for organizational success and helps in following a cost leadership strategy focused on offering the highest or maximum value to the customer at an affordable price. Therefore, this strategic goal of Amazon makes the organization the globe’s largest online retailer and also a business leader in the market segments it operates.
Amazon could be considered as a predominantly hierarchical organization that enables the organization in including function based divisions and geographic groups resulting in leading a successful and responsible business and functional unit (Amazon, 2022). The senior management of Amazon incorporates three CEOs and three senior vice presidents who are solely responsible for different imperative concerns and aspects of the business. The organizational structure of Amazon has four key attributes that are inclusive of hierarchical corporate structure, project groups that are hybrid, flexibility in business operations, and stability in the top management. All these key features of Amazon’s organizational structure are helpful in increasing the overall revenue thereby creating disruptive innovation in the e- commerce industry (Singireddy & Daim, 2018).
Company Overview
The organizational culture of Amazon is capable of enabling business capacity to address and respond to the demands and needs of the eCommerce industry. Thus, the organizational culture of Amazon is considered as a critical factor in the online retail success of the business (Denning, 2019). In addition to this, the organizational culture of amazon has also been described as breakneck-paced and immensely cost conscious as befits the organization that has run only small profit or loss usually accepted accounted principles for the majority of its life as a public organization. The positive attributes of the Amazon’s organizational culture enable conducting business smoothly and keeping each and every employee and the organizational manner of the business intact (Solanki, 2019). Amazon possesses a corporate culture that constantly pushes employees to effectively explore ideas and take risks, therefore, the corporate culture of Amazon is directly responsible for seeking new opportunities for the organization by using processes and practices that are data intensive offering efficient retail services (online). Thus, the bold corporate culture of Amazon enables the organization in facilitating openness toward the new ideas and concepts based on the organization’s diversity policy. This also enables Amazon in identifying the best possible solution to the queries and concerns of the customer and the employees and solve them to enhance its eCommerce business.
It is also observed that the corporate culture of amazon is capable of focusing on the needs and wants of both the customers and the employees and strives better to determine the trends and changes in consumer preferences, and associated services. This also highlights the customer centric attribute of Amazon to a great extent. Keeping a focus on the organizational culture, amazon aims at motivating the employees to apply different and innovative techniques for doing work. Thus, the organization believes in the potential of the employees, making them feel valued and trusted.
Amazon understands that in order to maintain a positive relationship with the employees and the customers, effective communication is imperative. Thus, the organization uses a multi channel approach for addressing and communicating the required information to the employees and the customer side by side (Abdirad, Krishnan & Gupta, 2021). Amazon also uses different digital and social media platforms for connecting directly with the buyers thereby offering a convenient manner for them to shop at Amazon. In addition to this, Amazon also uses the integrated marketing communication channels that allow the customer to have a personalized homepage with a product relevant to their recent purchases. Amazon also sends out an email that incorporates new items and deals and is similar to the things that customers had brought earlier. As a whole, it can be said that amazon uses media as their prime for of marketing and communication (Alshmrani, 2021). The organization aims at online marketing channels and reaches out to the customers and the employees directly through the organization’s website. Portal advertising, email marketing campaigns, sponsored search, and associate programs are a few major communication initiatives implemented by Amazon that deliver the message to the customers successfully. In addition to this, Amazon also uses different communication techniques such as brand communication, typography, composition color psychology, copywriting, and others to make sure that the right message is delivered to the right audience at right time.
Strategic Goals and Organizational Structure of Amazon
In order to communicate with the suppliers, amazon uses its social media channel in real time and harnesses the power of technology to get associated with the supply chain management of the organization (Bastiège, 2019). As a result, Amazon has also adopted a customer centric supply chain in order to effectively align its supply chain with the priorities of the organization. Therefore, it could be observed that Amazon uses a mix and integration of several communication channels such as media and print advertising, sales promotion, events, experiences, direct marketing, and public relationship for staying relevant and keeping in touch with the customers in the eCommerce industry.
In order to make a team more effective and strong, Amazon uses and implements the four phases of Tuckman’s teamwork theory that enables the organization in developing effective and agile teams in an organized manner thereby comprehending specific situations, procedures, practices, and behaviors. The forming, storming, norming and performing parts of the teamwork theory enable Amazon in holding the organization and each other accountable for presenting the leadership principles through their respective actions (Bouakel & Zerbout, 2021). The leadership principles adopted by Amazon using the Tuckman framework enable Amazon in conducting business smoothly, thereby describing how the leaders lead and keep the customers at the core of the business decisions. Thus, the agile teams of Amazon play a significant role in developing a unique culture within the organization thereby assisting in continuously pursuing the mission of being one of the most customer centric organizations, the safest place to work, and the best employer in the globe.
Amazon believes leaders are responsible for expecting and requiring invention and innovation from the agile and affirmative teams and always find better ways of simplifying the issues caused. Hence amazon’s teams are always externally aware, looking for new ad innovative concepts, and are not restricted by failures in new things. Amazon uses a signature adaptive practice for identifying and solving the needs of the customers that is encapsulated in the overall working process of the organization (Bryar & Carr, 2021). This enables the work teams in assigning budgets to any new initiative undertaken by the organization thereby testing the success of the phases at every step. This makes amazon one of the most successful organizations in addressing complex issues that were earlier difficult to respond to without the creation of an adaptive space.
Amazon understands the importance of motivation for its employee and the organization uses several learning opportunities, creation of a positive working environment, and more career growth opportunities that assist Amazon in keeping the performance of the organizational employees high and sustainable. Amazon’s employees are capable of observing their current as well as future pat that is based on performance acting as a major driver of motivation (Álvarez-Domínguez & Flores-Díaz, 2019). Amazon also uses the Herzberg hygiene theory or the dual factor theory that assists Amazon in comprehending the effect of job content on the motivation level of the employees. This theory also enables the organization in clearly differentiating between the factors that motivate the employees and that allows for moving the motivation level of the employees using better hygiene factors.
Organizational Culture of Amazon
As a consequence, this motivation theory of Herzberg enables Amazon in thinking big thereby bringing new concepts to the organization and making the organization realize that innovation and creativity could go simultaneously and result in better outputs in terms of performance of the organization (Abdurakhmanova & Rustamov, 2020). Hence, employees of amazon have endless opportunities for cultivating the next generation of innovators by accessing the organizational skills and resources prevailing in the organizational environment (Daniel & Kahlun, 2021). The implementation of two factors thereby also enables Amazon in encouraging its employees to take advantage of the career opportunities throughout the organization and create new heights of success for themselves.
Conclusion
Therefore, from the above discussion, it can be concluded that staying intact with the micro environmental factors would enable the organization in attaining organizational goals thereby performing effectively and efficiently in the business industry. Amazon has understood this well and the organization aims at identifying the prime factors that might impact its overall business decisions thereby impacting the performance. The organization also uses several theories and techniques for responding to such crises successfully.
Based on the above discussion, it is recommended that Amazon aims at implementing different strategies for motivating the employees and keeping them associated for the organization in the short and long run. For this, it is recommended that Amazon provides immediate praise for the employee’s accomplishment (Abdurakhmanova & Rustamov, 2020). This would help in boosting the morale of the employees thereby enabling them to respond well with the praise them to continue working the same manner. Celebrating both personal as well as professional milestones of the employees is also recommended to amazon. This would encourage Intrapreneurship within the organization and keep the employees motivated and satisfied.
References
Abdirad, M., Krishnan, K., & Gupta, D. (2021). A two-stage metaheuristic algorithm for the dynamic vehicle routing problem in Industry 4.0 approach. Journal of Management Analytics, 8(1), 69-83.
Abdurakhmanova, G., & Rustamov, D. (2020). Venture investment environment in different countries analysis of venture business in Uzbekistan.
Alshmrani, H. M. (2021). An analytical view of amazon success in the worldwide. Life Science Journal, 18(6).
Álvarez-Domínguez, M., & Flores-Díaz, W. A. (2019). Near Field Communication with Amazon Web Services.
Amazon.com. Spend less. Smile more. (2022). Retrieved 29 April 2022, from https://www.amazon.com/
Bastiège, M. (2019). How Amazon is totally Changing the global supply chain in the New Era, where companies are fighting to dominate the vision of business. International Journal of Information Systems and Supply Chain Management.
Bouakel, M., & Zerbout, A. (2021). Perspectives of Big Data Analytics‘ Integration in the Business Strategy of Amazon, Inc. In Big Data Analytics (pp. 201-220). Apple Academic Press.
Bryar, C., & Carr, B. (2021). Working Backwards: Insights, Stories, and Secrets from Inside Amazon. Pan Macmillan.
Cattero, B., & D’Onofrio, M. (2018). Organizing and collective bargaining in the digitized “tertiary factories” of Amazon: a comparison between Germany and Italy. In Working in digital and smart organizations (pp. 141-164). Palgrave Macmillan, Cham.
Daniel, T. I. F., & Kahlun, T. A. (2021). The viability of private labeling on Amazon. com in the 2020s: a study on the popular Amazon business model from a Finnish e-tailer’s point of view.
Denning, S. (2019). How Amazon practices the three laws of agile management. Strategy & Leadership.
Fabus, M. (2018). Business Environment Analysis Based On The Global Competitiveness Index (Gci) And Doing Business (Db): Case Study Slovakia. Journal of Security & Sustainability Issues, 7(4).
Fisher, J., Stutzman, H., Vedoveto, M., Delgado, D., Rivero, R., Quertehuari Dariquebe, W., … & Rhee, S. (2020). Collaborative governance and conflict management: Lessons learned and good practices from a case study in the Amazon Basin. Society & Natural Resources, 33(4), 538-553.
Sameer, H. M., & Pestun, I. V. (2018). Characteristics of microenvironment pharmaceutical companies of Iraq.
Singireddy, S. R. R., & Daim, T. U. (2018). Technology roadmap: Drone delivery–amazon prime air. In Infrastructure and Technology Management (pp. 387-412). Springer, Cham.
Solanki, K. (2019). To what extent does Amazon. Com, Inc.’s success accredited to its organizational culture and ND Jeff Bezos’s leadership style. Archives of Business Research, 7(11), 21-40.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
