Strategy Map

Financial
 Increase sale volume ,
 Expand share of rural market,
 Manage Cost, Profit and Capital effencey,

Customer Process
 Drive Brand preference,  Ensure Hight quality of product,
 Continuously optimize marketing,  Create partnership and Alignment within
 Partner effectively with customer fulfill the TCCS.
demand,
 Be perceived consumer as having the best  Enhance portfolio of goods and services
value, ahead of competitors,
 Skill employed,
 Quick delivery,  Strong Distribution Channel,

Learning and Development

 Use existing information to make better decision,
 Social Apps Development,
 Creative & Technical Services,
 AMAZON Amazon’s Core on which
the activities focus
Key Differentiator: Amazon doesn’t stress about
their competitors as much as they are hyper
focused on their customers

1. Customer Centric Culture

2. Passion for Innovation

01 PRICE
3. Commitment to Operational
Excellence
FOCUS 02
SELECTION

03
COVENIENCE Amazon attracts more
“Loyalists”.
 HUMAN RESOURCES AND MANAGEMENT
• Hiring talented people
• Creating sustainable operating cash flow and risk migration
Support Activities

TECHNOLOGY DEVELOPMENT
• Advanced customer database and analytic tool for recommendation and personalisation.
• Scalable Amazon web services for Amazon.com’s technology infrastructure.
• B2B and B2C customers, fully optimized as well as automated warehouses and distribution centres along with robotics technology.
• Advanced delivery with drones.
• Voice shopping with Alexa AI and Echo devices.
• Augmented reality to see how products fit, and test how they look.

PROCUREMENT

• Vast number of vertically integrated suppliers.

INBOUND LOGISTICS OPERATIONS OUTBOUND • MARKETING

Amazon Prime SALES SERVICES
Primary Activities

LOGISTICS • Earth’s most

• Marketing place
• Vertically integrated customer centric • Warranty and support
operations, packaging
suppliers. • Order fulfilment company for marketplace, AWS,
• Device and content
• Decentralized fulfilment • Order handling and • Hassle free return Amazon devices and
creation
centres to route the items dispatch • Customer services other services and
• AI-software
a put away location • invoicing • Promotions products.
development
• Item replenishment • Order & customer • Education & training
• AWS operations
• Quality control, fulfilment tracking
from prime location • segmentation
 Generic Strategy :

Cost Leadership

Cost Minimization Intensive Growth

Strategy

Advanced Market
Technology Development
R&D
Market
E -Commerce Penetration

Product
Process
Development
Automation

Diversification
 Threats of Threats of Bargaining Bargaining Competitive
New Entrants Substitutes Power of Power of Rivalry
Customers Suppliers

1. Small
1. High
1. High quality of population of
1. High cost of aggressiveness
1. Low cost information. suppliers.
brand of Firms
substitutes 2. Low switching 2. Moderate
development. 2. High availability
2. Low switching cost forward
2. High economies of Substitutes.
cost 3. High availability integration.
of scale. 3. Low switching
of substitutes. 3. Moderate size
cost
of suppliers.
 COMPETITIVE ADVANTAGE

Be better than
Avoid Competitors competitors

Attractive industry Attractive niche Cost advantage Differentiation

Attractive S.G.

Mobility Barriers

Isolating
Entry Barriers
mechanisms
 P
1) Political
E
1) Increasing
S
1) Increasing 1) Rapid
T L E
1) Rising interest in 1) Rising product
stability of disposable wealth technological environmental regulations.
developed income in disparity. obsolescence's. programs 2) Changing import
countries like developing 2) Increasing 2) Increasing 2) Rising emphasis and export
USA and countries. consumerism in efficiencies of IT on business regulations.
European 2) Potential developing resources. sustainability. 3) Rising
countries. economic countries. 3) Increasing rates 3) Increasing environmental
2) Government recession of 3) Increasing of cybercrime. popularity of protection
support for China online buying low-carbon regulations on
e-commerce. habits. lifestyle. businesses.
3) Increasing
governmental
efforts on
cyber-security.
TOWS MATRIX OF AMAZON
TOWS STRENGTHS
1. Amazon Prime
2. Customer centric approach
3. Differentiation and
innovation
4. Low cost structure
5. Largest Merchandise
OPPORTUNITIES S4O3: Partnering with brands
1. Amazon Saheli like Future’s Big Bazaar and
2. Amazon Basics expansion compete against Big Bazaar
3. Online Grocery S4O2: Expand Amazon Basics to
offer fashionable apparels at
4. Project Zero affordable prices
S2O4: Eliminate counterfeit
products to enhance customer
experience
THREATS S1T1: Offer Prime membership
1. Competitors at discounted price for first time
2. Rules and Regulations subscription
WEAKNESSES
1. Human Resources Policies
2. Amazon Pay
3. Free shipping services
4. No physical outlet
W2O3: Offer free delivery to
ones using Amazon Pay
W403: Tie up with Big Bazaar
with compensate for no physical
presence through its outlets
W2T1: Come up with PoS
terminals like Paytm to
encourage its usage
Competitive Strength Index
WEIGHTAG PAYTM
KPI E BnM AMAZON FLIPKART MALL SNAPDEAL
Price 1.5 2 4 3 4 3
Delivery Time 1.5 5 5 3 3 3
Return Policy 1.5 1 5 4 2 3
Customer Loyalty 1 2 4 3 3 2
Quality 1 3 3 3 3 3
Innovation 0.5 0 5 1 4 3
Keyword algorithm and Descriptions 1 0 4 3 4 4
Stock Keeping Unit 0.5 2 5 3 3 4
Convenience 0.5 2 4 4 4 4
Associated Services 0.5 1 5 1 0 0
Sellers Margin 0.5 3 5 2 3 3
Total 10 24 48 31 31 29
Ocean Strategy
Ocen Strategy
BnM AMAZON FLIPKART
6

0
Price Delivery Time Return Policy Customer Quality Innovation Keyword Stock Keeping Convenience Associated Sellers Margin
Loyalty algorithm and Unit Services
Descriptions