Question

Please answer the following question:

Identify a well known company (this may include Dell, Nike, United Airlines, eBay, Southwest Airlines, or another firm) and describe its business-level (competitive) strategy. Why does this strategy fit the firm’s external environment?

Answer 1

The company identified is Amazon, world's leading online marketplace.

As evident from the mission and vision statements, Amazon strives to be earth's most customer centric company where the customers can find and buy anything they like online. The business level strategy of Amazon can be described as given below.

(a) The company puts customer first. The customer focus reflects in policies and actions of the company. Be it huge selection of products ranging from a brooch to a large household appliance to an antique piece of work, or the same day delivery or easy returns and refunds or easy payment options, they have it all to make the customer happy, satisfied and content with the products of the company.

(b) Innovation is the name of the game at Amazon. By offering innovative products and services, the company creates loyal and satisfied customers. Be it Amazon prime or the products based on Artificial Intelligence ( like echo and robot), or the delivery through drones, the list is long, with a unified focus towards taking the customer service to the next level.

(c) Amazon operates on a huge scale thereby enjoying economies of scale and passing the benefits to the consumers in form of lower prices. It integrates the members of the supply chain with great efficiency to create a unique service model striving for service excellence and at the same time being cost efficient.

(d) Partnership with local business is another way to create value for the stakeholders. Launchpad is a way to help the local entrepreneurs to take their products on the big stage and reach them to customers across the globe.

(e) Aggressive approach to expansion and growth is another way of doing business for Amazon. It pours huge money and efforts into new and emerging marketplaces which hold great potential, creating loyal customers.

The strategy contributes to delight the most important stakeholder to the business, the customer. By creating loyal customers, the company ensures that it grows exponentially. By continuous innovation, it enhances customer experience and notches up the benchmark. By partnership with entrepreneurs and local businesses it helps to grow the local economy, promotes wealth creation and helps the local communities by crewating new opportunities. Above all, it offers more choices and cost effective options to a wide range of customers, winning their loyalty and retaining them for a long time.