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Executive Summary

Strategic business analysis is an important part of every company. This procedure

necessitates a company's examination of its vision, purpose, principles, and capabilities to

establish and maintain a profitable enterprise. Internal and external elements that add to the

working atmosphere are often a part of a successful enterprise. Another technique used is the

VRIO system, which aids the leadership team in determining if the services match all of the

details required within an organization to achieve a competitive edge. Amazon is a great

illustration of a business that uses a vast network of partners and marketers, free Prime delivery

for paying memberships, strong global market awareness, and consumer engagement. As a result,

Amazon became a rebuttal corporation. These characteristics have also allowed Amazon to

maintain its competitive edge in the VRIO model. When considering the competitive advantage

and performance, it is important to consider both internal and external conditions. The SWOT

analysis structure analysis is a tool used to assess the internal and the external environment. The

methods can aid in determining how a corporation should or should position itself in the

marketplace to achieve or long-term competitiveness. Being creative, ahead of the curve, and

decided to remain on top are both ways Amazon will maintain control of the buyer's business.

Introduction

Any organization requires a tool that reviews its objectives, missions, principles, and

capabilities regularly. A technique called strategic planning is used inside an organization.

Running this study and developing a strategy utilizing the resources included in the strategic

review would allow an organization to compete with others. Amazon, online retail called

Amazon, is among the businesses that are booming. Amazon is popular for Prime delivery,
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Alexa, Kindle, and a wide range of available items to everyone worldwide. Inside an Amazon

store, they have extra benefits such as  Amazon Wardrobe, Prime videos, and Amazon's smile.

Amazon has set a mission to be the world's most customer-centric business. Customers will find

whatever they choose to purchase online, and the rates are reasonable for all kinds of residences.

Amazon had a monopoly over all markets, including technology, consumer goods, fruit, and

clothes, as of 2021. Amazon is the driving force behind transforming the way people buy

digitally and in stores, pushing retailers to catch up with Amazon's benefits. Using and applying

the VRIO model and the SWOT framework are a few explanations that Amazon will continue to

be the retail sales leader.

Amazon Retail Internal Environment

VRIO Analysis

A VRIO research model is a goods-based structure that businesses utilize to perform internal

investigations. A VRIO review's mechanism to support the executive team in deciding whether

any of the VRIO parameters are being fulfilled is one of the most important features businesses

use. By ensuring that all specifications have been met, a company would stay profitable with its

rivals. A VRIO architecture, according to an article on Corporate Finance Institute, gives a

business a competitive edge if rare, imitate, merit, and organization is used (CFI, 2021). Amazon

employed the VRIO system to ensure they were ahead of the curve on all themes and phenomena

until competitors picked them up. This helps Amazon to maintain its competitive advantage over

its rivals. When we examine Amazon as an enterprise and utilizing their VRIO research, we will

see that they are more competitive than most businesses (Pratap, 2020). They've done that by

providing exclusive marketing points that most companies don't, such as Prime delivery, low

pricing, and the ability to do all of your shopping on one page. Amazon accomplished the VRIO
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model by providing a worldwide forum, high-quality merchandise, and a dedicated consumer

base. When you see all of Amazon's benefits, it's easy to see how the VRIO system has benefited

them and how it's helped them remain successful against external rivals. The Prime shipment

subscription is a great way to learn more about how Amazon is a market pioneer. Amazon

promises two-day delivery for several of its goods, enabling shoppers' market dynamics to be

met (Greenspan, 2016b). They could do that by recruiting their drivers, giving them more

leverage in getting deliveries shipped within the promised timeline. Customers would happily

spend a premium to get the rewards of membership packages, according to Amazon. Customer

input is the other reason Amazon has grown. Several buyers have praised their goods or services,

leading some customers to choose Amazon over rivals.

The ability of Amazon to Use its Strengths to Implement its Strategy

Recognizing and learning how to use one's strengths and carry out one's business strategy

is essential to running a profitable business. The prime delivery functionality gives Amazon an

advantage over other companies. Not only can they include it, but they still follow up with their

commitment, delivering goods within the specified period. One of the reasons Amazon has

accomplished this is by building more and more stores in various locations, allowing these

shoppers to take advantage of the benefits offered to other consumers around the globe (Pratap,

2020). Amazon is making more opportunities in various areas and building more stores, which

people love because it allows more residents to live. One of the new functionalities that already

have for consumers is that if the product is shipped, the distribution staff can take a snapshot of it

to inform the consumer where it is and in what shape it was shipped. This advantage gives the

consumer a sense of security about where and when their delivery is delivered, particularly if

they are not at home.

SWOT Analysis

Strengths

Amazon online retail stores have a vast range of goods and services at a low rate. It has a

modular delivery model that is fast and easy to change. It is a global brand noted for its

diversification and creativity that uses market research to present recommended brands to

consumers and non-customers, make discounts, and anticipate potential sales (Team, 2019). This

model is one of Amazon's strengths since it helps them predict an order before purchasing.

Amazon is now a well-known company worldwide, which allows it the potential to gain regular

buyers. Besides, the range of goods that this business offers and the market segments that it

targets provide it with a high level of flexibility. Another attribute of this business is the

willingness to evolve; Amazon began selling books digitally and is still the pioneer in online

retailing, as per the Forbes report. In 2017, the Seattle behemoth controlled 43.5 percent of the

industry.

Weaknesses

Amazon faces competition from retailers and other stores, which may reduce the profit

margins in the long run. Along with the disadvantages of the language, it is a challenge that not

just Amazon faces, but it is a significant obstacle that must be overcome (Team, 2019). As per

the Marketing Study Guide, they still have a drawback whereby Amazon delivers free delivery to

its consumers. It is at risk of sacrificing profits and cannot be optimized on prices regardless of

this approach.  It is a tactic that has succeeded for them so far; they might not be able to deliver

the cheapest and lowest rates, but it has drawn customers.

Opportunities

Amazon is a virtual marketplace that is open to those with Internet connections in every part of

the world. Furthermore, it provides ways to enter culture at a low cost and negatively impact the

ecosystem by selling digitized books (Team, 2019). This business can expand further, and its

diversity allows you to introduce new labels and items to your portfolio. Similarly, Amazon

could be a business that is constantly updating. You will be a forerunner if you utilize

technological advancements to your benefit.

Threats

One of the most severe risks to this business is the shipping period since they can not stock all of

their goods in one place. They partner with several vendors, and Amazon relies on them to meet

their distribution deadlines. According to Team (2019) Amazon is a ripe destination for a

fraudster.  Millions of dollars of payment cards and confidential payment records are stored by

the firm in addition to Amazon stock. It has not been a big issue for this business, however as

technology advances, the threats increase.

Conclusion

Among the most powerful influences in a company is the executive staff. The executive

team must be able to see the idea and put the principle into action. The leadership team will

develop innovative tactics by knowing and recognizing the central aspects of the PESTEL and

five powers. The VRIO research of Amazon revealed that they associate service they provide is

exclusive and sets them apart from their rivals. Amazon stands out from the competition by

offering incredible customer-centric benefits like prime delivery, Amazon Smile, and  Amazon

wardrobe. The leadership departments, on the other side, must keep an eye out for emerging

developments and features developed by other companies. Recognizing what their rivals are up
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to would ensure that they are both innovating and testing their name. If Amazon holds consumer

loyalty at the core of its objectives, it will remain the market leader.

References

Corporate Finance Institute (CPI). (2021). Strategic management - overview, components,

framework. Retrieved April 21, 2021, from

https://corporatefinanceinstitute.com/resources/knowledge/strategy/strategicmanagement/

Greenspan, R. (2016a, July 8). Amazon.com inc. Five forces analysis & recommendations

(porter's model) - panmore institute. Panmure Institute. Retrieved April 21, 2021, from

http://panmore.com/amazon-com-inc-five-forces-analysis-recommendations-

portersmodel

Pratap, A. (2020, June 20). Vrio analysis of amazon. notesmatic. Retrieved April 21, 2021, from

https://notesmatic.com/2020/06/vrio-analysis-of-amazon/

Team, M. S. (2019, December 22). Amazon pestle analysis | pestel analysis of amazon | Mba

Skool-study.learn.share. MBA Skool-Study.Learn.Share. Retrieved April 21, 2021, from

https://www.mbaskool.com/pestle-analysis/companies/17996-amazon.html