Question

illustrate the implementation of corporate strategies at Amazon:

• Identify examples of diversification, merger & acquisitions and international strategy activities by Amazon.
• Explain how diversification, merger & acquisition and international strategies create shareholder value for Amazon.
• Propose potential diversification, merger & acquisition and international strategy by Amazon in the future. Please justify.

good anwer please

Answer 1

Answer -

Example of diversification by Amazon

• Amazon Kindle

Amazon was started as intermediator who supplied the goods to buyer. Procurement of various products right form FMCG like shampoo / soap / televisions etc to clothing / furniture etc. from various vendors and supplying the same to interested customers ready to buy on online website -- was Amazon's start.

Amazon then diversified their business by jumping in the manufacturing industry. Amazon started manufacturing Amazon Kindle which revolutionaries the reading and book/novel/magazine publishing industry. Suddenly no. of authors increased as - self publishers found Amazon Kindle a place with more advantages.

• Amazon also started manufacturing and flooding the market with portable speakers.

Example of merger and acquisition by Amazon

• Annapurna Lab - An Israel based semiconductor company that Amazon acquired in 2015 - boosted Amazon's cloud computing presence. Amazon Web Services (AWS) is very much a renowned and a competitive name in the cloud computing world along with Google / Apache etc.
• Twitch -- One of Amazon's biggest and most beneficial acquisitions was the Twitch - streaming web service specially for gamers.

Example of International Strategic Activities by Amazon

• Payment acceptance methods

Amazon has more than 200 payment acceptance methods. In US where Cards are more preferred for India which is one of the very crucial market for Amazon -- Amazon has adopted Indian style - transaction in cash -- or card whichever customer would prefer.

• Flexibility in subscription models

Amazon realised that as opposite to Americans who are ok with separate subscriptions to Netflix / Amazon Prime etc . Indians are reluctant to do so. So Amazon tied up with network service providers like - Idea/ Vodafon / Airtel etc. The subscription for Amazon Prime will be included free for one year in the regular cell phone recharge.

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Benefits to stakeholders -

• All the merger and acquisition made by Amazon have in direct or indirect way benefited the stakeholders and consumers.

For example - Acquisition of Twitch - due to wide presence of AWS - Amazon Web Services - made the platform more responsive and lag free for live game streamers.

• International strategies like shaking hands with small storekeepers for introducing Amazon to the customers who prefer person to person buying - has made available a parallel source of income for these small stores.

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Proposal for Amazon for Future business strategy ( Merger and acquisition / diversification / international strategies )

--International strategy and diversification

Corona virus has made drastic impact on each sector of the service as well as manufacturing industry

Amazon can plan to diversify their business into pharmacy and producing Corona vaccinations. The major benefit to Amazon by doing so will be -- reentry to China and its vast market where Amazon in past had tumbled badly and couldn't establish.

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