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Amazon Strategic Plan What Began As A Term Paper

Amazon Strategic Plan What began as a web-based retailing book sales site company in 1995 with revenues of $511,000, has grown into "the world's largest online retailer and one of the nation's biggest book sellers (New York Times. May 20, 2011), and is considered "one of the iconic companies of the Internet era" (New York Times. May 20, 2011). The company has blossomed not only because of the vision of founder Jeff Bezos, but a commitment to sound strategic planning which "perfectly aligns the long-term interests of shareholders with the interests of customers" (Amazon.com. Shareholder Letter. 2010).

Amazon.com occupies the number one spot in the internet services and retail industry with revenues of 34.2 billion in 2010 (CNNMoney. 2011). Amazon's main rivals include Google, E-Bay, Yahoo and Microsoft. The company has transformed itself dramatically from its inception as a publically traded company in 1997 with a focus on e-retailing books. The late 1990's and into the early 2000's saw the company emerge as the world's largest e-commerce retailer for a myriad of product lines and "easily shippable consumer goods" (Johnson, M. April 12, 2010). Over the last decade the organization has diversified its offerings to include "cloud computing services, Kindle e-books and readers, and now, mobile applications" (Huang, G. February 25, 2010). From a strategic planning vantage point amazon's model is built around...

CEO Jeff Bezos describes the strategic planning model as willingness "to plant seeds and wait a long time for them to turn into trees with five to seven years before it has a meaningful impact on the economies of the company" (Murphy, S. November 22, 2008). This approach has served Amazon and its shareholders extremely well as their innovative and entrepreneurial energies have allowed movement into "white space" defined as "market opportunities a company may wish -- or need -- to pursue" (Johnson, M. February 12, 2010).
Mission Statement & Vision Statement

Amazon.com provides a bold and compelling mission and vision statement for their stakeholders. A tangible and effective mission statement "depicts what the organization is and does, not where it is headed in the future" (Palmer, I. 2008). For Amazon their mission statement articulates this emphasis: "We seek to be Earth's most customer-centric company for three primary customer sets: consumer customers, seller customers and developer customers" (Amazon.com.2011). The vision statement for Amazon provides context to the mission statement and offers "a vivid description of the organization as it effectively carries out its operations" (McNamara, C. 2008). "Our vision is to be earth's most customer centric company; to build a place where people…

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The exogenous elements which an organization cannot control are the opportunities and threats which comprise their environment. For Amazon the opportunities are boundless in the constant development of the web, applications, and computing dynamics. As Bezos indicates in his letter to shareholders; "we live in an era of extraordinary increases in available bandwidth, disk space, and processing power, all of which will continue to get cheap fast" (Amazon.com. Shareholder Letter. 2010). The threats of course come from industry rivals and the competitive marketplace. Google, Yahoo, IBM and others are constantly innovating and attempting to garner market share in some of Amazon's most profitable areas. That said the focus for Amazon is not based on "who the competitors are, what kind of technologies are available, and so on-those things are going to change so rapidly" (Murphy, S. November 22, 2008). Instead the company confronts threats by identifying their core competencies and effectively harnessing energy to implement them.

Long-Term Objectives

For Amazon the long-term focus is on innovation, adaptability, and driving value to the customer. Bezos has an interesting perspective on this issue, indicating that the company's strategy is based on "things that won't change" (Murphy, S. November 22, 2008). To this end he emphasizes the importance of identifying "what's not going to change in the next five to ten
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