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Amazon: Corporate and Business Level Strategy - Case Study Example

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This study discusses the corporate and business level strategies of Amazon.com, Inc and examines how the company’s structure and control systems match its strategy. The study examines the actions of the organization, as well as decisions made regarding issues such as diversification, etc…
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Amazon: Corporate and Business Level Strategy
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Download file to see previous pages On the other hand, business-level strategies deal with the company as a business and how it relates to customers and other businesses. At this level, organizations seek to create value for their customers, while operating at the least cost possible. Decisions made at the business level enable an organization to stay competitive in the market amidst other competing firms in the industry Gregorio, (Ireland, Hoskisson & Hitt, 2006). Industry standards, competitor advantages, and pricing models all play significant roles in business-level strategy.  
According to Gregorio (2012), Amazon.com recognizes the significance of offering a wide range of products for customers. Customers prefer a shopping platform that offers a wide variety of products of services. As part of the company’s corporate-level strategy, Amazon.com has increased the number of products in its product portfolio, which shows adaptable the company can be. Initially, Amazon started as a book store, and its first online store stocked books only. However, as the e-commerce business developed, the needs of the market changed. Amazon took advantage of the opportunities to offer other product such as music and videos, in addition to books.

With time, the company has diversified its portfolio to include a wide range of electronics such as computers, cameras, and mobile phones among others, watches, clothes, shoes, home appliances, software solutions, and video games among many more. As technology advances, Amazon.com has not been left behind. The company acknowledges that customers demand e-books which can be stored on their computers for easier access. For this reason, the company has adapted its old business model to fit this new technology. This strategy ensures that customers have a large variety of items from the same store. This strategy increases earnings for the business, which in turn increases the wealth of shareholders.   ...Download file to see next pagesRead More
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