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Amazon's Corporate Strategies

Discuss Amazon's corporate strategies in detail relative to the following:
1) Outsourcing/contracting
2) Alliances/ Joint ventures
3) Vertical mergers
4) Diversification

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Discuss Amazon's corporate strategies in detail relative to the following:

1) Outsourcing/contracting
After starting operations in 1995, Amazon.com had accumulated 45 million customers world wide who demanded online help. As Amazon's customer base continued to increase, the company found itself trying managing an overwhelming load of customer emails. In 2000, Amazon incorporated an outsourcing strategy with the Indian outsourcer Daksh to, which would respond to 95% of emails received within 24 hours and 100% within 48 hours (Jacques, 2006, p.20). Amazon enlisted several hundred Indian professional to work solely for their company.
The advantage for Amazon to choose offshore outsourcing over an insourcing strategy is (1) lower labor cost; and (2) benefits from having an experienced 6,000 employee staffed outsourcer (Jacques, 2006) Amazon realized a savings of 40% over onshore operation, where labor cost for offshore employees were $200 a month as compared to a full-time service representative onshore of $2000 (Jacques, 2006, p.20).

2) Alliances/ Joint ventures
Amazon.com formed many alliances or acquisitions that contributed to its main product line expansion and service improvements. In 1998, Amazon.com formed in alliance with Muse and OSM. The alliance with Muse provided growth in service for customers seeking digital information about music, books, and movies. Amazon's alliance with the systems management ...

Solution Summary

The expert discusses Amazon's corporate strategies in detail relative to outsource/contracting, alliances/ joint ventures, vertical mergers, and diversification.

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