Business Development
Abstract
In this research paper, Amazon’s SWOT and TOWS matrix have been reviewed in order to
evaluate the strengths and opportunities and get around the weaknesses and threats. A thorough
explanation of the new product idea have also been given. In addition to this, departments in
general was discussed along with the departments and their relation to each other concerning
Amazon. The second part of the paper discusses Amazon’s opportunity matrix as well the results
of a survey concerning the new product idea. It also discusses the resources and assets Amazon
would require. The third and final portion of the paper discusses business model and its types in
general along with the ones used by Amazon. Furthermore, sales measures are also explored with
deeper research done into the way Amazon may measure their sales for the new product.
Scenario
I work as a business development manager in Amazon and they’re looking for growth
opportunities. I have been tasked by my department head to prepare a market plan and strategy
which will include the launch of a new business partnership and preparation of a new product
line. After coming up with the plan and strategy, I have to prepare a detailed report on the newly
proposed business model and how the company will benefit from it.
TASK 1
Amazon
Amazon is one of the largest technology companies. Amazon is based in Seattle, Washington. It
has its own website for every country they operate in, customer service centers, fulfillment
centers, and software development centers worldwide.
Amazon is known as one of the “Big Four” of tech companies, besides Apple, Microsoft, and
Google. Amazon is the world’s largest AI assistant provider, online store, and live streaming as
well as cloud computing platform, according to their market capitalization and revenue. Amazon
,generated around $232.9 billion in revenues in 2019, $4.4 billion of which came from their
Whole Foods stores.
History
Amazon was founded by Jeffery P. Bezos in 1994 in Seattle, in his garage when he was 18. The
company went public in May 1997. Amazon started selling movies and music in 1998, when it
started operations globally. It did so through the acquisition of online book sellers in Germany
and UK.
As a result, Amazon started as a startup company, selling only books online initially, but
expanded later to include electronics, apparel, video games, software, toys, furniture, jewelry and
food. Today, Amazon generates around $61 billion and is the largest online retailer. (Anon.,
2019)
The corporation launched Amazon Web Services in 2002, which provided marketers and
developers with data on how popular a website was, as well as Internet traffic patterns, and
several other statistics. In 2006, the organization expanded its AWS portfolio by making
available Elastic Compute Cloud and Simple Storage Service, which rented the storage of data
through the web. That year, Amazon also launched Fulfillment by Amazon, which managed an
individual's as well as small business' inventories.
SWOT
Analysis of SWOT (Strengths, Weaknesses, Opportunities, and Threats) is a framework that's
used to assess the competitive landscape of an organization and develop strategic plans. SWOT
analyzes both external and internal factors, and present and future prospects.
Strengths Weaknesses
Hefty Product Category Limited Penetration in Developing
Brand Name Markets
Customer-Centric High Shipping Costs
Efficient Delivery Network Treatment of Employees
Large Revenue Streams Limited Brick-and-Mortar Stores
Tax Avoidance Controversy
, Opportunities Threats
Expansion of Brick-and-Mortar Stores Pressures Competitively
Innovation and AI Regulatory and Legal Threats
HR Management Security Breaches & Data Loss
Supply Chain Management and Digital Imitable Business Model
Marketing Dependence on American Markets
Alliances or Partnerships
Strengths
Hefty Product Category
Amazon has quite an enormous product category, which includes products like books, toys,
clothes, appliances, electronics, etc. along with goods for homes and kitchens as well like
furniture, decor, etc. They even have food items in their inventory.
Brand Name
One of Amazon’s main strengths is its brand name which is why it’s one of the most popular and
globally recognized E-Commerce brand. They are popular in many countries and their brand is
recognized globally, with it being one of the top brands in American and European markets.
Customer-Centric
Amazon’s Customer Relationship Management (CRM) has created processes that are
customer-centric in order to record data based on their customers’ buying patterns. This allows
Amazon to offer items based on their customers’ preferences. Amazon also has a great customer
service network, where both buyers and sellers can ask Amazon questions and get their problems
solved.
Efficient Delivery Network
Due to Amazon’s fulfillment centers and their partnerships, Amazon has created a distribution
network that’s structured and deep. This allows them to deliver products even in remote
locations. Amazon offers same-day delivery as well as free shipping for some countries with
Abstract
In this research paper, Amazon’s SWOT and TOWS matrix have been reviewed in order to
evaluate the strengths and opportunities and get around the weaknesses and threats. A thorough
explanation of the new product idea have also been given. In addition to this, departments in
general was discussed along with the departments and their relation to each other concerning
Amazon. The second part of the paper discusses Amazon’s opportunity matrix as well the results
of a survey concerning the new product idea. It also discusses the resources and assets Amazon
would require. The third and final portion of the paper discusses business model and its types in
general along with the ones used by Amazon. Furthermore, sales measures are also explored with
deeper research done into the way Amazon may measure their sales for the new product.
Scenario
I work as a business development manager in Amazon and they’re looking for growth
opportunities. I have been tasked by my department head to prepare a market plan and strategy
which will include the launch of a new business partnership and preparation of a new product
line. After coming up with the plan and strategy, I have to prepare a detailed report on the newly
proposed business model and how the company will benefit from it.
TASK 1
Amazon
Amazon is one of the largest technology companies. Amazon is based in Seattle, Washington. It
has its own website for every country they operate in, customer service centers, fulfillment
centers, and software development centers worldwide.
Amazon is known as one of the “Big Four” of tech companies, besides Apple, Microsoft, and
Google. Amazon is the world’s largest AI assistant provider, online store, and live streaming as
well as cloud computing platform, according to their market capitalization and revenue. Amazon
,generated around $232.9 billion in revenues in 2019, $4.4 billion of which came from their
Whole Foods stores.
History
Amazon was founded by Jeffery P. Bezos in 1994 in Seattle, in his garage when he was 18. The
company went public in May 1997. Amazon started selling movies and music in 1998, when it
started operations globally. It did so through the acquisition of online book sellers in Germany
and UK.
As a result, Amazon started as a startup company, selling only books online initially, but
expanded later to include electronics, apparel, video games, software, toys, furniture, jewelry and
food. Today, Amazon generates around $61 billion and is the largest online retailer. (Anon.,
2019)
The corporation launched Amazon Web Services in 2002, which provided marketers and
developers with data on how popular a website was, as well as Internet traffic patterns, and
several other statistics. In 2006, the organization expanded its AWS portfolio by making
available Elastic Compute Cloud and Simple Storage Service, which rented the storage of data
through the web. That year, Amazon also launched Fulfillment by Amazon, which managed an
individual's as well as small business' inventories.
SWOT
Analysis of SWOT (Strengths, Weaknesses, Opportunities, and Threats) is a framework that's
used to assess the competitive landscape of an organization and develop strategic plans. SWOT
analyzes both external and internal factors, and present and future prospects.
Strengths Weaknesses
Hefty Product Category Limited Penetration in Developing
Brand Name Markets
Customer-Centric High Shipping Costs
Efficient Delivery Network Treatment of Employees
Large Revenue Streams Limited Brick-and-Mortar Stores
Tax Avoidance Controversy
, Opportunities Threats
Expansion of Brick-and-Mortar Stores Pressures Competitively
Innovation and AI Regulatory and Legal Threats
HR Management Security Breaches & Data Loss
Supply Chain Management and Digital Imitable Business Model
Marketing Dependence on American Markets
Alliances or Partnerships
Strengths
Hefty Product Category
Amazon has quite an enormous product category, which includes products like books, toys,
clothes, appliances, electronics, etc. along with goods for homes and kitchens as well like
furniture, decor, etc. They even have food items in their inventory.
Brand Name
One of Amazon’s main strengths is its brand name which is why it’s one of the most popular and
globally recognized E-Commerce brand. They are popular in many countries and their brand is
recognized globally, with it being one of the top brands in American and European markets.
Customer-Centric
Amazon’s Customer Relationship Management (CRM) has created processes that are
customer-centric in order to record data based on their customers’ buying patterns. This allows
Amazon to offer items based on their customers’ preferences. Amazon also has a great customer
service network, where both buyers and sellers can ask Amazon questions and get their problems
solved.
Efficient Delivery Network
Due to Amazon’s fulfillment centers and their partnerships, Amazon has created a distribution
network that’s structured and deep. This allows them to deliver products even in remote
locations. Amazon offers same-day delivery as well as free shipping for some countries with
