Verified Document

Strategic Management Of Amazon And Yahoo.com The Essay

Strategic Management of Amazon and Yahoo.com The recent advancements in technology, computing, and Internet technologies have seen a rapid rise in the number of online businesses. Cases in point are the Amazon.com and Yahoo.com that took the globe by storm at the end of the 20th the century. Broadly speaking, e-commerce has become one of the most lucrative platforms to conduct businesses (Nabi, & Luthria, 2002). In this paper, two relating Amazon and Yahoo are reviewed. First, I seek to find out the source of Amazons success as a leading online retailer in 2011. The study will also establish whether Yahoo's business model functionally geared for success during the same year. In addition, the distinct business strategies of each of these entities and the way the strategies resulted in comparative advantages are also analyzed.

Amazon.com, the world's largest online retailer, is an American company that was established in 1995 by Jeff Bezos. The headquarters are in Washington DC. Having started as a book selling business, the company has grown exponentially over the last 17 years to incorporate several other products. These products include music, DVDs, video games, toys, software, and video among many other home improvements goods. As at the moment, this company boasts of customer base of 22.5 million across 150 different countries all over the world. On the other hand, Yahoo.com is a multinational Internet corporation based in Sunnyvale, California. It was set up by Jerry Yang and David Filo, who are both electrical engineering graduates from Stanford, in 1994 (Canzer, 2006). The corporation is largely known for its Web portal and search engine known as Yahoo Search. In addition, it offers several other related services such as Yahoo Directory, Yahoo Answers, Yahoo Mail, Advertising, Finance, and Yahoo News. Recently, Yahoo also ventured into social media services (Nabi, & Luthria, 2002).

Amazon strategic organization entailed a combination of informational elements such as a virtual storefront...

Though Amazon has heavily ventured in information and technology, with strategic focus on software instead of hardware, its operations by that time were mostly limited to packing and shipping. The management key propositions for customers buying their products over the Internet include convenience, wide selection, fair prices, and enhanced customer service (Kasabov & Warlow, 2012). Its web store has always remained operational 24/7 and offers additional services, for instance book recommendations and reviews. Amazon has expanded its database and fortified it such that customers can use database such functionality to locate the out-of-print titles. This has been made possible by different search criteria employed. Furthermore, in Amazon's website, stock availability is clearly displayed for every product and, for those products yet to be released, customers are allowed to pre-order so that shipment can be made upon availability (Hitt, Hoskisson & Ireland, (2013).
Another strategic management technique employed by Amazon is "one-on-one" customer relations. In other words, Amazon puts "each customer at the centre of her own universe." Jeffrey Bezos, company's CEO, sums up company's personalization effort by submitting that: "if we have seventeen million customers, we should have seventeen million stores." One-2-one relationship has further been applied to the company's marketing strategy. From Amazon's web page, someone may notice that further recommendations of other products based on your previous purchases are made after a purchase has been made from the site. In addition, further recommendation of additional products based on other consumer who bought similar products to the one currently purchased are displayed (Nabi, & Luthria, 2002).

Concerning Yahoo Inc., it changed its mission statement from being just a "search portal" to "to focus on connecting people with their passion, communities, and world's knowledge." Essentially, Yahoo's mission…

Sources used in this document:
References

Canzer, B. (2006). E-Business: Strategic Thinking and Practice: Strategic Thinking and Practice. Cengage Learning

Hill, C.W.L., & Jones, G.R. (2012). Strategic Management. Cengage Learning.

Hitt, M.A., Hoskisson, R.E., & Ireland, R.D. (2013). Strategic management: Competitiveness & globalization: cases. Mason, OH: South-Western, Cengage Learning.

Kasabov, E. & Warlow A. (2012). The Compliance Business and Its Customers: Gaining Competitive Advantage by Controlling Your Customers. Palgrave Macmillan
Cite this Document:
Copy Bibliography Citation

Related Documents

Strategic Action: Oracle's Acquisition of
Words: 1366 Length: 3 Document Type: Thesis

Com to keep the Zappos.com culture intact and growing so that it can pervade the Amazon.com culture as well. Summary Amazon.com sees the future of e-commerce retailing as needing to be more focused on the experience of shopping, purchasing, and recommending products online over and above the basic transaction. The acquisition of Zappos is an investment in creating a customer-centric culture, an area the founders of Amazon.com have continually attempted to create

Overstock.com Business Strategy and Analysis
Words: 659 Length: 2 Document Type: Case Study

Strategic Choices The author of this report is asked to do a few things within this report. First, the author is to look at and assess the Grand Strategy Selection Matrix. Second, the author is to review and assess the general business model and strategy of Overstock.com. The author of this report is to then select which of the quadrants that Overstock falls within. While it may be a little difficult

Amazon's Ebusiness Model Assessing the Potential of
Words: 1160 Length: 4 Document Type: Essay

Amazon's eBusiness Model Assessing the Potential of Amazon.com's E-Business Model Amazon.com continues to expand well beyond the boundaries of its initial business model that focused only on books to today including merchandise, suppliers for businesses, and consumables. The common thread that unifies all of these elements together however is the unique customer experience that Amazon.com strives to deliver, all in the context of responsive service (Pine, Gilmore, 2008, et.al.). For Amazon.com to

Human Resource Management Using the Example of
Words: 2063 Length: 7 Document Type: Essay

Human Resource Management Using the example of Google, evaluate whether the following HR practices/policies is strategic or not. Does this HR practice help the organization to achieve its goals and objectives? In this paper, we are going to be looking at the impact of different policies and procedures on Google. This will be accomplished by studying the strategies that they are using to attract and retain employees. Once this takes place, is

Influence of E-Business on Supply Chain Management
Words: 3480 Length: 12 Document Type: Term Paper

e-Business on Supply Chain Management With an increased competition in the marketplace, one can observe an increase in product offerings in the market. This should lead to shorter product life cycles. It has therefore become essential for retail firms to better manage their supply chain process so that they can better control the supply and demand aspects of their product portfolio. It is, however, interesting to note that with the advancement

Amazon.Com, and Projects Whether or
Words: 2585 Length: 9 Document Type: Term Paper

New-found competitiveness for Small- to Medium-Sized Companies The outlook for smaller companies is much stronger today than it was at Amazon's founding. That's because several of the advantages enjoyed at the time by Amazon have been commoditized or made easier and less expensive to implement. As the number of users has climbed since 1995, smaller businesses can now take a market-maturing step and segment their customers in an ever-finer fashion (Rangan 1992).

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now