Business 189 – Professor Shirley

Presented By: Alma Rios, Jeremy lacsa, José R. Vigil, Farhaad Sheikh, Kunal Patel

Agendao Introduction

o EFE Matrix

o IFE Matrix

o IE Matrix

o SWOT Matrix

o Quantitative Strategic Planning Matrix

o Recommended Strategy

o Organizational Structure

o Organizational Culture

o Product Positioning Map

o Target Market

o Strategy Evaluation Report

Jeremy

EFE MatrixKey External Factors Weight Rating Score

Opportunities

The number of buyers over the internet is growing

0.25 4.0 1.0

Forecasting increase in US ecommerce 0.2 4.0 0.9

Threats

eBay, OverStock (NewEgg, CDW, etc) 0.35 4.0 1.4

Government regulations and instability on internet products and sales in international economies.

0.05 1.0 0.05

Low market entry barriers 0.15 2.0 0.3

Totals 1   3.65

Jeremy

IFE MatrixKey Internal Factors Weight Rating Score

Strengths     

Customer Relationship Management 0.18 3.0 0.6

Strong Focus on R&D0.20 3.8 0.84

Diverse Products 0.13 2.5 0.375

Logistical advantage0.15 4.0 0.76

Weaknesses     

High Debt Ratio 0.16 2.9 0.58

Risk of Introduction of Wrong New Category

0.09 1.9 0.19

Free Shipping affects bottom line 0.09 2.7 0.27

Total 1 

3.615

Jeremy

Strong Average Weak

(3-4) (2.0-2.99) (1-1.99)

HighII III

(3-4)

MediumIV V VI

(2.0-2.99)

LowVII VIII IX

(1-1.99)

IE Matrix

Jeremy

SWOT Matrix

 

Strengths - S

1. Customer Relationship Management2. Strong Focus on R&D3. Diverse Products4. Logistical advantage

Weaknesses - W

1. High Debt Ratio2. Risk of Introducing a New Product or Service3.Free Shipping affects bottom line

Opportunities - O

1. The number of buyers over the internet is growing2. Forecasting increase in US ecommerce

SOS4O2 - Use logistic advantage to reach consumers in new countriesS1, O1 - Increase human interaction within the website.

S1O2 - Provide a loyalty program to provide an incentive to both new and existing members

WOO1,W3 - Leverage Amazon Prime subscriptions to absorb the cost of free shipping. O1,W2 - Create an online school that provides certifications

Threats - T

1. Growth potential of direct competitors (eBay, Overstock Newegg, CDW, etc.)2. Government regulations and instability on internet products and sales in international economies. 3. Low market entry barriers

STS1T1 - Maintain a strong relationship to increase consumer loyalty. S2,T3 - Set up affiliates with mom and pop shops for brick and mortar in store buying

WTT1,W1 - Increase Bond offerings to gain further lead over competitors.T1,W2 - Capitalize on Government use of cloud services to form relationships.

Jose

Quantitative Strategic Planning Matrix

Jose

Increase human interaction within

the website.

Establish a loyalty program to provide further incentive to

both new and existing members

Create an online school that provides

certifications

Key Factor Weight AS TAS AS TAS AS TASStrengths From IFE

Customer Relationship Management 0.18 4.0 0.72 4.0 0.72 4.0 0.72

Strong Focus on R&D 0.20 2.0 0.40 2.75 0.55 4.0 0.80Diverse Products 0.13 0.0 0.00 3.0 0.39 4.0 0.52Logistical advantage 0.15 0.0 0.00 0.0 0.00 0.0 0.00Weaknesses From IFEHigh Debt Ratio 0.16 0.0 0.00 0.0 0.00 1.0 0.16

Risk of Introduction of Wrong New Category

0.09 3.0 0.27 2.0 0.18 1.0 0.09

Free Shipping affects bottom line 0.09 2.0 0.18 2.3 0.21 1.0 0.09

Sum of Weights 1.00 1.57 2.05 2.38Opportunities From EFEThe number of buyers over the internet is growing

0.25 4.0 1.00 4.0 1.00 4.0 1.00

Forecasting increase in US ecommerce 0.20 4.0 0.80 4.0 0.80 3.0 0.60

Threats From EFE

Growth potential of direct competitor 0.35 3.0 1.05 3.5 1.23 3.0 1.05

Government regulations and instability on internet products and sales in international economies.

0.05 1.0 0.05 1.0 0.05 2.5 0.13

Low market entry barriers 0.15 3.0 0.45 3.0 0.45 3.0 0.45

Sum of Weights 1.00 3.35 3.53 3.23

Sum of Total Attractiveness Score 2.46 2.79 2.80

Introduce Online Certification Course for Amazon Vendors – Amazon University

Expand & Grow! Unrelated Diversification

Strategic Alliance with the University of Phoenix

Teach Amazon Vendors how to be effective by offering

Logistics, Customer Service, & Transactions

Final Recommended Strategy

Jose

CEOMarketing

Jeff BezosFounder and

CEO

CEOOperations

CEO Business

Expansion

CEO Developmen

t

CEO Editorial

Warehouse Ops.Customer Service

Special OrdersCustomer Programs

AdvertisingCommunications

Strategic Relationships

Business developmentNew product &

service development

Software design,development and

maintenance

Web site designEditorial content

Book features

Corporate R&D

Corporate HQs Staff

Board of Directors

Current Organizational Structure (Multidivisional Structure)

Krunal

Proposed Organizational Structure

Krunal

Amazon Leadership Principles

Customer Obsession

Ownership

Invent and Simplify

Are Right, A lot

Hire and Develop the Best

Insist on the Highest Standards

Think Big

Bias for Action

Frugality

Vocally Self Critical

Earn Trust of Others

Dive Deep

Have Backbone; Disagree and Commit

Deliver Results

What’s it like to work for Amazon?

For a Senior Manager? Employee’s are treated as absolute equal in the work place.

For an Engineer? It’s draining.

For a Warehouse Employee? White Collar sweat shop

Farhaad

Amazon Culture Improvement Proposal

A continuous seeking of the optimal balance between flexibility and control (Work-Life Balance)

Responsibility and personal empowerment

Commitment to one’s group, the company and to one’s fellow citizens

Farhaad

Product Positioning Map

Hig

her

Qualit

y

Lower Price

Alma

Product Positioning Map - Proposed

Lower Price

Hig

her

Qualit

y

Alma

What stage do you think the E-commerce market is in?

Early Majority

Current Target Market

Shoppers

Early Majority Internet shoppers

College Students

Price conscious shoppers

Early adopters (kindle)

Sellers

Third party retailers

Online sellers

Developers

Web developers

Alma

New Target Market

Shoppers

Late Majority and Laggard Internet Shoppers

Early Majority Internet shoppers

College Students

Price conscious shoppers

Early adopters (kindle)

Sellers

Current Low Performing Sellers

Third party retailers

Online sellers

Developers

Web developersAlma

Balanced Score Card

Area of Objectives Target Target Deadline

Primary Responsibility

Growth•Improve sales through Amazon certification incentive

15% Increase Service Revenue

Q4 2014 Marketing

Quality•Reinforce to customers the customer-driven vision

85% positive survey

Q4 2012 Marketing/ Customer Support

Innovation •Provide an online certification program for users

Create curriculum with University of Phoenix

Q3 2013 Research & Development/Management

Consumer Confidence•Ensure customers that Amazon sellers are certified and trustworthy

75% of sellers are certified

Q4 2014 Marketing

Jeremy

Balanced Score Card

Area of Objectives Target Target Deadline

Primary Responsibility

Growth•Improve sales through Amazon certification incentive

15% Increase Service Revenue

Q4 2014 Marketing

Quality•Reinforce to customers the customer-driven vision

85% positive survey

Q4 2012 Marketing/ Customer Support

Innovation •Provide an online certification program for users

Create curriculum with University of Phoenix

Q3 2013 Research & Development/Management

Consumer Confidence•Ensure customers that Amazon sellers are certified and trustworthy

75% of sellers are certified

Q4 2014 Marketing

Jeremy

Conclusion

Jeremy

Q & A

References