Question

What strategic recommendations will you make for Amazon Corporation? Please explain how you determined these strategies and what you hope will be the outcomes?

Answer 1

Recommendations

Even with the creation of the Amazon Marketplace through strategic alliances, the company will still have invest in additional infrastructure to ensure that they can offer say day delivery. Having the Amazon Marketplace is just one step in the process to achieving and maintaining a competitive advantage. The Market place allows them to compete with local retailers but Amazon still needs warehouses in place to process shipments and ensure that delivery deadlines are met. If they do not expand upon their current infrastructure then they risk losing out to other online retailers that have and can offer same day delivery. As an online retailer, the main concept of Amazon’s business model revolves around their ability to deliver affordable products in a timely manner. Investing in infrastructure will ultimately allow Amazon achieve Jeff Bezos’s vision of Amazon becoming the “largest online marketplace on earth”

Alternative Recommendation

As Amazon continues to grow, their level of competition is likely to increase. Investing in high-technology is a viable recommendation. However, Amazon should also say focused on their ability to provide top quality products and services to their customers. To ensure that the customer’s needs are continuously met, Amazon should ensure that they are following the managerial concept of Total Quality Management (TQM). According to Wheelen, et al., “TQM is an operational philosophy committed to customer satisfaction and continuous improvement” . By implementing TQM within Amazon’s business model, the company will likely reap the advantages associated with TQM. These advantages include cost reduction, increased customer satisfaction, defect deduction, and increased moral