Professional Documents
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Executive Summary
In the following case study one of the largest E-Commerce companies Amazon has will be
described to understand its management strategy towards success. Through John Kotter's
model leadership approaches followed in the Amazon business profile will be vividly
described. Transformational leadership style responsible for the success and technology
advancement will be focussed. Changes in the business strategy and servicing slowly and
steadily with change in time will be considered in the writings. Lastly, by using Ansoff
Matrix improvement for its business product and services are discussed. However in this case
study a brief recommendation is provided for Amazon.
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Table of Contents
Detail the change management strategy which Amazon has taken to achieve success?...........3
How could the company improve the business and adoption of its product and services?.......8
Reference..................................................................................................................................11
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Detail the change management strategy which Amazon has taken to achieve success?
Change is an inevitable part which is needed to grow the business if it is used as new
technology or a new process then it can be shifted in the leadership management. Adopting
new methods that bring advantage for the company and towards expanding its business it
carries into a lot of resistance. Amazon focuses on the strategy that does not change rapidly.
It focuses on the opportunities but neglects its failures. Long term strategies are made by
Amazon, the strong value chain and culture-oriented by Amazon brings more customers to it
(Pearse 2017). It puts pressure on customer satisfaction in spite of competition and excellent
customer satisfaction is preferred by Amazon when it offers expanding and selections
products to the personalized experience customer. With the help of speedy service, Amazon
did not let their prime customers go away. Achieving satisfaction and working to train the
employees so that they can understand the demand of the customer helps to achieve its target
in a creative way (Bittar and Prideaux 2018). The idea behind the change management is
through smooth communication and with a proper goal for transformation of the company.
Amazon followed John kotter's step model for change in a management strategy. John
Kotter's model was created in 1994 and it has mainly eight different features.
Creating a sense of urgency- In Amazon is a very first step needed to spot the biggest
opportunity coming across the company. Various windows of opportunity that are open for
Amazon may close in the coming days so a strong and motivated group of people start
moving to the particular change (Napier 2017). Identifying the right opportunity and working
according to it.
Building strong guidance - After placing the urgency demand, the group must commit to
implement the desired changes successfully. The members must be willing to work at every
level and account for the changes.
Forming a straight vision and initiative- Building a strategy and vision helps to communicate
easily.
Listing a volunteer while communicating- The goal of the company with the leadership. It is
a set of volumes that help to motivate the employees of the company. It is one of the
important steps towards transformation.
Removing the barriers and involving actions- Supervisor and managers become bureau tic
when they have to manage the process to change the management successfully (Gershon
2018). A legal process with policy is needed to prevent the action effectively.
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Short term goals- By achieving short term goals the employees gain confidence and it will
help them in the long run towards achieving a big goal. These goals must be unambiguous,
replicable and tangible so that the data required for this transformation must be quantifiable
and quantifiable validated.
Sustaining acceleration - For Amazon this is a crucial transformation in the management
where one must not sit comfortably after winning a short goal. In fact start working for the
big one as soon as the short goal is achieved.
Changes in the institution - This is the last step and it brings different processes where
sustainability and communication are derived as the two major fundamentals for the
management. It requires connections within the organisation, management and employees for
better communication.
Jeff Bozos leadership style within Amazon is likely to increase the other leaders through
transformational and intellectual opinions. Amazon is one of the largest companies which
focus on its culture and encouragement towards their employees. Honest reviews by the
customer and generating the solution for it is the core fundamental which Amazon follows
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strictly (Luo et al. 2019). The largest oriented retailer in an online founded by Bozos in the
US enables the company to grow successfully through its leadership style which often
criticizes the culture inside. However, there are many who praise the basis for the
transformational leadership and skills which creates the environment toxic within the
organisation. Jeff Bozos leadership examines his culture towards the organisation
remarkably. The transformational leader as it dissolves and boosts its imagination and
intellect simultaneously towards its employees. He encourages opinions and drives the
employees to the situation from where they can learn to face the customer’s feedback step by
step. The views which result in a productive workforce and innovative environment within
the company pose the employee to work effectively. According to one of the executives of
Amazon, it can be written that skills possess truth and encouragement which hold for
incorporating the decision.
Although the debate for culture is an effective tool towards decision making if the pressure
rises the employees extend the internal leadership quality. Basically a leader is a person who
suggests guiding their people through motivational skills and as a role model (Gray and
Bilsborrow 2020). Some of the people present at Amazon or it will be better to call them
Amazonians who encourage, motivate towards the company goal without getting close and
without setting any limit. It may be considered as a transformational leader of bases whose
inspiration is an element of its leadership style. His vision for Amazon is very crystal clear
which is communicated between the employees and the management. Every employee is
challenged with higher and improved abilities. Amazon sets its standard for a long term
period and presents the work in front of the customers in a standard form (Schein 2020). The
bestselling book of a band of brothers to Stephen E. Ambrose 1992 is an example of
apprehensiveness as a significant task
To keep its employees on track with the advancement in technology and change in the
environment it has become imperative to detect the ways so that the employees can enhance
their skill (Gray and Bilsborrow 2020). To identify the future leader’s Amazon makes an
introduction of an evaluation system of performance which is better known as the leadership
and organisation review introduced in the year 2013. Here the staffs that are not performing
well are identified by the management on an early basis. It is a transformational initiative.
Jeff considered it as a system of strength and weakness of the staff to be known through this
evaluation system full stop. This will help to realise the areas of weakness and to improve
their proportional growth. However organisational leadership review, values each individual
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and actions taken against the staff who are not up to the mark in Amazon but the managers’
ability to mould them according to the need is appreciated at Amazon.
Yes, with the time-lapse Amazon has changed its working process servicing and its product
also. People are developing day by day and their choices are also developing simultaneously.
Understanding their basic needs to their fashion and towards the health issues, Amazon has
worked precisely for their basic needs. The thumb rule of Amazon is to take out every
solution to the customer’s problem with techniques and innovation. Towards the vigorous
steps taken by Amazon are appreciated by the users. From online recharging to ordering
foods online and delivering the fresh vegetables in an innovative way and Amazon has
succeeded in it (Escobar and Abdullah 2020). A quarter-century ago nearly in the year 1944 the
company shared its name with the world's largest river and incorporated itself to sell books
through a dial-up modem. This was not the first bookstore to do business online but this
business behaved to its customers in a local manner. No sooner the bell rang and in the
headquarters, Seattle the order was placed. Founder of Amazon Jeff Bozos makes everything
very clear. Slowly and steadily the company became a living store who sells mostly
everything.
Today after 26 years Amazon has again reshaped itself permanently. It is one of the most
valuable organisations in the top three rankings in the world. The market capitalisation is
around US dollar 1 trillion that is greater than GDP of 200 countries approx the retailer
company is redefined continuously towards shaping its future in a new level before the year
of 1994 the customers have to travel to the store and to discover their needed things shopping
was hard work and best stores channels and devices. After experiencing two-day free
shipping from the prime membership program the seller starts expecting the retail to shop
worldwide in an online way only (Escobar and Abdullah 2020). The company has made the
shopping convenient through different features and in one click ordering the customers are
happy to receive the product at the doorstep. Customers search voice command on eco watt
Interest images in the next generation focused on the efforts made by his employees to focus
on the prevention from dying. It was noted in the year 2018 in the all-hands meeting that
Amazon is not too big to fail. Now it will become a major player in the pharmaceutical and
health insurance market through this Amazon has destroyed many industries. In the year
2019, an online drug for dollar 1 billion to dollar 500 billion prescribed through doctors has
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joined the hands with the health venture program. However, 310 million customers bills and
high technical financial services for the cash and online payment through Amazon pay or any
other credit card. These are the programs which aim to develop the markets in countries with
huge populations. Hence, Amazon has tried its best to reshape the retailer business
permanently in the last 26 years. In the coming next 25 years, it may totally redefine the
online shops.
How could the company improve the business and adoption of its product and services?
Amazon is one of the successful companies operating in eight languages and a successful
leader organisation which works for a long term strategy. It does not stick with only one
business plan model. In marketing services Amazon optimises the product pages through
SEO and affiliate marketing strategies that allows Amazon, advertise themselves on the
website which is more or less similar to Google ads. These services are provided with
keywords which are related to the products and so the shopper places the order according to
its interest (Escobar and Abdullah 2020). This way of attracting customers may advance
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personal choices in personal accounts. However, Amazon services to help from every corner
around the world are appreciated. Terms and conditions written in the website of Amazon for
the customers are easily understood and the performance in the delivery of the services for
the concerned product is taken with extra care. Confirming the order placed through email
and message makes the customer reliable and associate and free cancellation is also provided.
The company needs to bring new changes to increase the profit and to make new customers.
Three different customers are defined by Amazon: they are developer customers, seller
customers and sales customers. More than 76 million accounts with 1.3 million active sales
customers are placed in the marketplace of Amazon (Escobar and Abdullah 2020). It was
unusual when it identifies the developer customers who mainly use the web services provided
by Amazon. It helps to increase the advancement in technology and infrastructure in
Amazon.
The company can improve its business by using the answer of matrix tool which is also
known as the fundamental of marketing growth. It is a planning tool which is used to analyse
the alternative directions towards strategic development precisely for the business.
Penetrating in the market and developing the product helps to develop the market strategy
and its diversification. This tool of Ansoff Matrix was published in 1957 in the Harvard
business review. It was developed by H. Igor Ansoff. It helps the entrepreneurs to understand
the strategy of the market and also the risk in a better way. Four different strategies of this
tool are market penetration, market development, product development and diversification.
Amazon briefly focused on the sales of the products already present in the warehouse so that
an appropriate market can exist and there occurs no downfall in the product development. By
introducing new products in an existing market at Amazon helps to sell the older product also
(Escobar and Abdullah 2020).The strategy of introducing new products helps to enter new
markets using the old products simultaneously. Diversifying the new market products help
Amazon to increase its promotion through its distribution efforts. Out of the four different
elements discussed in Ansoff Matrix, product development is the fundamental which is the
base of all the remaining three elements.
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Figure: Four elements of Ansoff Matrix
Source: (Ansoff Matrix, 2020)
It is suggested that Amazon may improve its checkout process and educate the user to buy the
products. However, many excitements can be created by involving Face book accounts to
identify customers' behaviour (Cheung et al. 2017). Linking accounts from Amazon to face
book will also enable the customer to know about the purchase of their friends. This can help
in this respect; if a friend wants to buy a phone then the individual can be contacted or an
alert may be sent to the particular friend to update the buyer about the phone. Sales at
Amazon might be supported so that people while selecting the product, for example, Lenovo
yoga series then the particular product is good or not, maybe answered or recommended by
the seller or customer service at the same specific time. Augmented reality or interference in
the interactive process may be advanced by working in a specific category so that the
experience of the top seller would help the new buyer to understand the feedback of the
product. The marketplace at Amazon provides Kindle editions for the reader (Comuzzi 2019).
However, according to the recent report, it is noticed that the readers are complaining about
the navigation of USB memory and micro SD. Keeping this in mind Amazon can provide the
memory disk in the app itself where the individual's personal gadgets memory is not used for
the Kindle edition. Lastly, it can be said that an individual when starting shopping looks for
the favourite colour so Amazon must look into the matter and recommend those colours only
while displaying in their users’ ID (Farooq and Shabaz 2019). This will help to increase the
hit rate of the recommended product
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Reference
Farooq, T. and Shabaz, M., 2019. Revenue generation from recommendation system using
sentimental analysis. International Journal of Innovative Technology and Exploring
Engineering, 8(6), pp.351-354.
Gershon, R.A., 2018. Three Strategic Approaches to Business Transformation. Handbook of
media management and economics.
Gray, C. and Bilsborrow, R., 2020. Stability and change within indigenous land use in the
Ecuadorian Amazon. Global Environmental Change, 63, p.102116.
https://www.amazon.com/b/ref=glow_cls?
node=20338496011&pf_rd_r=K1K8KY5FWFM3Y99N6HVT&pf_rd_p=7573e18c-59e7-
4a6a-96bd-5b352e6b3c6e
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Luo, A., Guchait, P., Lee, L. and Madera, J.M., 2019. Transformational leadership and
service recovery performance: The mediating effect of emotional labor and the influence of
culture. International Journal of Hospitality Management, 77, pp.31-39.
Napier, G.S., Amborski, D.J. and Pesek, V., 2017. Preparing for transformational change: a
framework for assessing organisational change readiness. International Journal of Human
Resources Development and Management, 17(1-2), pp.129-142.
Pearse, N.J., 2017. Change management in a VUCA world. Visionary leadership in a
turbulent world: Thriving in the new VUCA context, pp.81-105.
Schein, A., 2020. Organisational ambidexterity, hard power management and smart power
management at Amazon, a case study. Global Business and Economics Review, 22(1-2),
pp.27-40.
Statista. 2020. Amazon: Annual Revenue 2018 | Statista. [online] Available at:
<https://www.statista.com/statistics/266282/annual-net-revenue-of-amazoncom/> [Accessed
3 September 2020].
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