Diversification Strategy Amazon Company - Essay Example

Evolution on the other hand is the development of the company over time in an attempt to pursue its goals and objectives (KENNY, 200).  Amazon has progressed in the present more than in the past. The evolution includes a change of ownership as everyone is incorporated since the owners decide issues based on the long term motivated by the excess opportunities available in the modern world due to development in technology, labor quality has increased over time since hiring and placement must be done to acquire competent efforts who can pursue diversification in all aspects. Companies diversify in different ways. Some use the same line of products to produce more known as the related diversify while others chose to go different line known as the unrelated diversifiers.

Thus those who chose to be in the same line tend to make more profit than the firms that deviate to other goods since the companies diversifying in similar products tend to specialize and produce quality goods that can compete relatively in prices at the market. Amazon is a company that is customer-obsessed ion and tries to satisfy them by all means since they are the key to the growth of the firm hence participates in various inventions to improve productivity (KENNY, 200). The organization also believes in spending the right way to achieve self-efficiency of diversification, increase sales volume and become more resourceful and innovative in all sectors of the company.

Amazon chose to diversify into unrelated businesses to expand its growth and the evolution has gone over time. The company started as an online bookstore selling but that has since changed over time. The company has now incorporated diversity in other areas which include software, MP3s, video games electronics, food to consumers, music CDs, videotapes, equipment, fashion, and many more. The company also has got a multi-product strategy in the market as it plans to enter the sale of air tickets online and hotel rooms.

The company has since acquired a substantial share of the market of the bookstore.