DWO - Himani

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amazon’s Organizational Life Cycle

Amazon uses Bureaucracy, as it has a lot of rules and regulations that employees must follow.
Additionally, the organization is hierarchical in nature, with different levels of management.

1.Entrepreneurial Stage (1994-1997)

2.Collectivity Stage (1997-2006) Elaboration Entrepreneurial


Stage (2015- Stage (1994-
3.Formalization Stage (2006-2015): present) 1997)

1. Revenue growth from $10.7 billion in 2006 to $107.0 billion in 2015.


2. Service Expansion: Amazon Prime (2005), Audible (2008) and Zappos (2009)
3. Product Diversification: Amazon Web Services (AWS) (2006), provides cloud Formalization Collectivity
computing services. Stage (2006- Stage (1997-
4. Implemented sophisticated logistics and fulfillment operations to support growing 2015) 2006)
demand.

4.Elaboration Stage (2015-present):

1. Revenue growth from $107.0 billion in 2015 to $574.78 billion in 2023.


2. Original Content Development: Amazon Prime Video, including award-winning
shows like "The Marvelous Mrs. Maisel" and "The Boys." Fig 1. Organizational Life Cycle
3. Ongoing investment in emerging technologies such as artificial intelligence, machine
learning, and drone delivery (Amazon Prime Air).

Source: https://www.macrotrends.net/stocks/charts/AMZN/amazon/revenue#:~:text=Amazon%20revenue%20for%20the%20twelve,a%2011.83%25%20increase%20from%202022 .
amazon’s Organization Theory

Differentiation Strategy Decentralized Decision-Making Two-Pizza Teams


Amazon embraces a decentralized decision- Amazon encourages communication,
Founder and CEO Jeff Bezos famously
making model, empowering teams at various collaboration, and efficiency and empowers
articulated a customer-centric approach in his
levels to make decisions autonomously to small teams to own projects from conception to
emphasis on starting with the customer and
foster agility, innovation, and accountability delivery, fostering a sense of ownership and
working backward.
within the organization. responsibility.

Continuous Innovation Diverse Portfolio


Data-Driven Culture Amazon's organizational theory extends to its
Amazon's organizational theory emphasizes a
Amazon places a strong emphasis on data- diverse portfolio of businesses and ventures.
culture of continuous innovation. The
driven decision-making. The company From e-commerce and cloud computing to
company encourages employees to think big,
collects vast amounts of data on customer media and entertainment, Amazon operates
challenge the status quo, and pioneer new
behavior, market trends, and operational across a wide range of industries. This
ideas. Initiatives like "Day One" encourage a
metrics, which are used to inform strategic diversified approach allows the company to
startup mentality, where every day is treated as
decisions and optimize processes. capture synergies, mitigate risks, and explore
the first day of a new venture.
new opportunities.

Source: https://www.studysmarter.co.uk/explanations/business-studies/business-case-studies/amazon-global-business-strategy/

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