Alternate Approach to Evaluating Company Strategies

Dr. Leather Amazon Potential Top Strategies for 2022/3-2026/7:

1. Opportunity [Company context]: What does this strategy provide the company in terms of company growth?
Is the strategy a good message to the consumer about where the company is going?

STRATEGY Response to questions posed above

1. Develop sophisticated AI  AI will allow Amazon to be more efficient and receive better
support for Amazon tracking of consumer data. This AI can be used in retail, AWS,
and whole foods. This strategy is a good message for
consumers because it shows Amazon is continuing to innovate
retail website and product
to put themselves ahead of competitors.
services

2. Design and build all new  Fully robotic fulfilment centers are a growth indicator for
fulfilment centers as consumers through the efficiency benefits and cost reductions
of limiting employee salary. Efficiency benefits and robotic
innovation should be a good sigh for consumers.
fully robotic

3. Develop new higher level  Cyber Security will grow the company by ensuring the safety of
cyber security for data and protection of consumer data, while ensuring
company data is kept safe. Tech. upgrades are good for any
company. Amazon can ensure consumers will have positive
cloud computing service
outlooks for Amazon through cyber security.

4. Increase services to  Creating Amazon branded products that can combine with
business and homes for AWS would make Amazon a huge competitor in cloud and IoT
space. Company products will encourage consumers that
money is being spent into company created items.
the IoT in AWS

5. Create sophisticated VR  VR will create a new market for Amazon to expand into with
content for streaming partnerships with Twitch. Consumers can be optimistic about
this because of an expansion that diversifies Amazon’s
products and services.
game companies
2. Innovation [Future predictability]: Are the products or services you plan to develop unique or at least with
clear differentiation from your competitors?

STRATEGY Response to question posed above

1. Develop sophisticated AI  The AI production is different to competitors in the fact that its
support for Amazon being used for all of Amazon’s services (retail, AWS, gaming,
telehealth). Retail will be able to determine consumer
behavior more effectively and AWS will be able to operate
retail website and product
synergize AI with apps and increasing consumer engagement.
services

2. C Design and build all new  No one in the industry has attempted to create full robotic
fulfilment centers as centers. Amazon is the only company with an retail or cloud
that is creating automated fulfilment centers.
fully robotic

3. Develop new higher level  Cyber security is a field that Walmart, Microsoft, and Apple are
cyber security for pushing for because of security and protection it provides to
data. Consumers and the business are protected through
cybersecurity and help eliminate the increasing number of
cloud computing service
threats in the cyber space.

4. Increase services to  Competitors such as Microsoft and Apple have their own
business and homes for products, but limited products that synergize with cloud
products. Amazon should focus on a connection between
household items and cloud to set themselves apart from other
the IoT in AWS
competitors.

5. Create sophisticated VR  Microsoft is already in the VR/AR space with their own VR
content for streaming headset. This combined with the Xbox makes Microsoft a
strong player in the gaming industry. Amazon would need
strong partnerships to tackle this market effectively.
game companies

3. Viability [Appropriate timeline]: How does the strategy help you remain or be more competitive? Is the
strategy already aligned with your current business model?
 STRATEGY Response to questions posed

1. Develop sophisticated AI  AI will help Amazon remain the leader in cloud through
support for Amazon customer engagement and technological innovation. The
strategy has similarities to the current Amazon business model
that looks to be out of brick and mortar and more online.
retail website and product
services

2. Design and build all new  This strategy keeps Amazon competitive in the space of retail
fulfilment centers as specifically. This will create better efficiency for Amazon in
sending out packages, as well as cutting costs of employees
working.
fully robotic

3. Develop new higher level  This strategy helps to keep Amazon at the top of the cloud
cyber security for space because of the security it provides to those who use
AWS. Amazon has been moving more toward cloud computing
as its main priority. This move allows Amazon to continue to
cloud computing service
grow the cloud space.

4. Increase services to  Improving IoT in AWS allows Amazon to stay ahead of cloud
business and homes for computing competitors such as Microsoft by connecting
Amazon branded tech to AWS. Microsoft Azure has cloud
computing abilities, but Amazon could be able to connect
the IoT in AWS
cloud to the home with the connection of these devices.

5. Create sophisticated VR  Amazon can catch up to Microsoft in the VR space by

content for streaming collaborating with more giants in the gaming industry. The
partnership with Twitch has increased Amazon’s gaming
market. This idea somewhat relates to Amazon’s overall
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business plan because of the relevance in the IoT.

4. Strategic-Fit Analysis [Internal consistency]: Does the strategy fit in an already major existing unit of the
company? Does it provide consistency in company direction?
 STRATEGY Response to questions posed

1. Develop sophisticated AI  Amazon has been using AI through many of its divisions,
support for Amazon including Amazon Alexa. Though AI would be improved to
increase the efficiency of company branded products and
operations. This strategy does stay consistent with the
retail website and product
company direction.
services

2. Design and build all new  This strategy does not already exist in the company, but retail
fulfilment centers as would become even easier for Amazon to control with
automated fulfilment centers. Amazon could then focus on
hiring for AWS improvement. Amazon would be in a good
fully robotic
direction using this strategy.

3. Develop new higher level  Cyber security does exist in Amazon, but a new version of this
cyber security for cyber security does not yet. Innovation in this field is in line
with the company’s direction.
cloud computing service

4. Increase services to  Amazon is already the biggest provider in the cloud space, so
business and homes for increasing products and services within IoT is in line with
company procedure. IoT does exist in divisions of Amazon.
the IoT in AWS

5. Create sophisticated VR  VR does not exist in another version of Amazon’s divisions

content for streaming because this strategy is less in line with what Amazon wants to
do. However this is still an important market because of the
recent rise in the gaming market.
game companies

5. Economies of scale [Resource balanced]: By adding this strategy, do you get a proportionate savings in costs
by an increase in sales or decrease in per unit production or service delivery?

STRATEGY Response to question posed

 1. Develop sophisticated AI  Adding this strategy will boost sales because of the knowledge
support for Amazon on customer data. Exploring AI to be able to determine
customer behavior will increase Amazon’s sales.
retail website and product
services

2. Design and build all new  Building fully automatic fulfilment centers will limit salary
fulfilment centers as expenses to those who work in those centers. This is a good
strategy for Amazon to save money over the long term.
fully robotic

3. Develop new higher level  Higher level cyber security will save Amazon money from data
cyber security for breaches that may occur. With increased protection, Amazon
will pay for many less occurrences of cyber breaches.
cloud computing service

4. Increase services to  Increasing services in IoT through brand made products is the
business and homes for riskiest of the strategies, but also the highest reward. Success
of brand made products would mean Amazon would not rely
as much on retail to carry in capital.
the IoT in AWS

5. P Create sophisticated VR VR content is another risky project that requires investment and time.
content for streaming Success in VR means Amazon would be able to create another market
in which is successful for the company. However the risk of failure
could drop Amazon’s overall success.
game companies

6. Risk Factors [Workability]: What must the company objectively consider to be potential problems or issues
with the implementation of the strategy?

STRATEGY Answers to question posed

1. Develop sophisticated AI  Problems that could arise with AI is a heavy investment cost.
support for Amazon However since Amazon’s has a strong net profit, it should be
able to invest in this project without damage.
retail website and product
services

2. Design and build all new  An issue that Amazon needs to consider with fully robotic
fulfilment centers as fulfilment centers is errors in the robotics. For example,
sending packages to the wrong address and swapping items
through error. Amazon can reduce the number of errors put
fully robotic
into place by having workers to watch over products
distribution.

3. Develop new higher level  Cyber security is expensive and can be difficult to render a
cyber security for proper security system. Amazon has funds to invest in this but
finding the right operators to implement this cyber security
could prove to be difficult.
cloud computing service

4. Increase services to  Brand made products are a risk because currently products
business and homes for such as Alexa, are not very popular among households. This
strategy is implied to improve the product through innovation
in AWS to household connections.
the IoT in AWS

5. Create sophisticated VR  VR is a risk for the company because of the lack of experience
content for streaming it has in the gaming industry. This ultimately means that
Amazon is entering a new market hoping to succeed through
partnerships.
game companies