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Grand Strategy of Amazon

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Determine the grand strategy or strategies currently pursued by Amazon. After you have applied the Grand Strategy Matrix to Amazon, determine whether the strategy the company now follows is the most optimal one.

A. Visit Amazon's website, and using the company's Annual Report and/or other additional research, determine the organization's strategy or strategies. For example, is the company presently pursuing a Concentration strategy? An Innovation strategy? Is the company in Retrenchment?

B. Applying the Grand Strategy Matrix (GSM) to Amazon, discuss the assumptions you are using to determine the optimal strategy Amazon should pursue.

C. Decide whether Amazon is pursuing the best strategy (or strategies). If not, what grand strategy or strategies should Amazon pursue at present? Defend your answer.

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Solution Summary

This posting applies the grand strategy matrix to Amazon and evaluates its current strategy.

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A. On visiting the Amazon 2021 Annual Report we find the strategy is to consolidate its current position and at the same time seek new online strategies for expansion. Amazon says that it intends to make bold choices when facing competition. It also intends to strengthen its position with strategic partners. Amazon also intends to build considerable strategic flexibility. Amazon mentions that it intends to move to new geographic regions, use new technologies, and provide new products/ services. Amazon also cautions its shareholders that its strategic alliances, commercial agreement, and business relationships expose it to several risks. Moreover, it admits that the value of investment relating to acquisitions can change rapidly causing a fall in value (a). Besides, its strategic transactions carry considerable risk. This risk comes from innovative strategic moves.

The strategy of Amazon is customer centricity, Amazon stays ahead of its competitors, and is known to put a chair in its boardroom to represent the customer. Further, Amazon focuses on generating new ideas and new ways of doing things so that it can bring greater value to its customers. Amazon also actively increases its speed of execution, its adaptability to market forces, and flexibility. Besides, Amazon follows the policy of continuous improvement in every aspect of its operations. Amazon focuses on keeping the price of the products it sells less expensive. As it is clear from the Annual Report of Amazon, the company continues to invest in new technologies for improving its market position. Moreover, Amazon increases its logistics applications and improves its fulfillment process. In addition, ...

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Kasim Johar, MBA
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  • MBA, Indian Institute of Social Welfare and Business Management
  • BSc, University of Calcutta
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