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Amazon.com: Creating Value through e-Business Strategy

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After reviewing the article (http://fortune.com/2012/11/16/amazons-jeff-bezos-the-ultimate-disrupter/), help me with an analysis covering the following questions:

1.What is your evaluation of Bezos' approach to leading change? Have Bezos' various initiatives added value? If so, how?

2.What are some of the challenges that Amazon.com faces by setting a goal to be the company that "sells everything to everyone"? Is this sustainable?

3.Was Amazon.com continuously successful? Describe some successes and failures.

4.With a business model that focuses on low costs and even goes as far as a break-even mentality, how does this defy the typical strategic business models and is there a path for sustainability?

5.As Amazon.com continues to grow in size and in scope, what challenges to you think Jeff Bezos and his managers will confront as they attempt to increase the company's performance?

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Step 1
My evaluation of Bezo's approach to leading change is positive. He first creates a climate for change in his organization. Executives are required to write six page reports. This makes them focus on goals, issues, and assumptions. Reading the reports helps other executives understand the urgency and help him form a strong coalition. Next, the interaction in the meeting helps create the vision for change. He has the ability to engage his entire organization. He personally looks at consumer complaints and compels his managers to take corrective actions. Acting on consumer complaints has the effect of engaging the organization. He communicates the problems that the consumer has faced to the entire organization. Further, he encourages the managers to take action. His actions for change are not always driven by profit motive but by strategic considerations. Bezos also implements change and builds on change. For example, he made several changes that had an impact on the book industry and also changed the face of the electronics distribution. Bezo's change is effective because he makes change stick and his company profits from the change. Bezos' various initiatives have added value. By introducing Kindle and enabling customers to download books, Bezos has brought about change not merely in his organization but also in the marketplace. Similarly, by marketing electronics he has changed the marketplace for electronics. Also, by making available low cost database software for businesses, he has brought a change in the marketing of computer software. From the perspective of customers, he has enabled the lowering of prices in several segments of the market. Bezos changes have added value to his investors because the value of their shares has gone up over a period of time. In addition, his changes have brought value to his employees. The value of the stock held by them has gone up over a period of time. His changes have brought value to customers because they have been able to buy products at far lower prices than what they would ever have done. Further, the changes introduced by Bezos have created value for industries as a whole. By changing the way products are marketed, he has also created opportunities for industries such as the electronics industry and the book industry. in making changes, the goal of Bezos in most cases has been to increase value to the customers. He has achieved his goal in a large number of cases.

Step 2
Setting the goal of selling everything to everyone creates challenges for Bezos and his company. The challenges are shrinking margins and product flops. For example, Bezos launched fire phone in the US but it was not ...

Solution Summary

This solution analyzes the article on Amazon and discusses answers to five questions. The sources used are also included in the solution.