In quest 4

In quest 4

Must decide which approaches to chose , if you choose ansoff just put the product in the four square. E.g diversification Walmart acquisition, new market china, product development – internet retailer. Internet consultant you may use market penetration

q5 last part ideas

The Times said in its report that Amazon’s founder, Jeff Bezos, and Lee Scott, Wal-
Mart’s chief executive, are in talks for a deal that might be announced within several
months.
“We do not confirm or deny rumours or speculation about what we may or may not do in
the future,” said Amazon spokesperson Patty Smith.
Amazon would become Wal-Mart’s e-commerce supplier and Wal-Mart would gain
access to the e-tailer’s expertise in managing an Internet retail operation, from online
ordering to home delivery, the newspaper said. With total fourth-quarter sales topping
$56.5 billion, Wal-Mart is the largest retailer in the world and operates its own Web site
at walmart.com.
Amazon also would gain a presence in Wal-Mart’s 4,500 stores, a cash injection and a
percentage of the sales it makes through Wal-Mart, the Times said.
The e-tailer, struggling to get into the black, announced in January that it was laying off
1,300 workers, or 15 percent of its staff.
Goldman, Sachs said that “given the current decelerating outlook for e-commerce
growth, the impact of (such partnerships) has become increasingly important...as a
vehicle to offset the slowing environment.”
“In theory, Amazon can leverage its existing assets (technology expertise, large
customer base, and global brand awareness) to create partnerships that allow it to enter
new categories or accelerate progress in existing categories to cast the widest net of
awareness and still own the consumer.”
There are a variety of different categories that make sense for Amazon to pursue either
in the near-term or the long- term, GS said, including groceries, apparel, HBA (health,
beauty, and accessories), sporting goods, consumer electronics and other big-box retail
categories.

Amazon Case supplementary guides - Stakeholder Mapping Application

Stakeholder Mapping Application

The ‘Key Player’ seem to be the buyers and the shareholders. In depth analysis shows the customers shift to the ‘Keep informed’ portion of the Stakeholder Mapping. This is because the power of the buyer is low as analysed earlier in the Porter Five forces.

Another ‘Key player’ is the employee. Specially, the talent one. Mr. Bezos has done a good job informing the shareholder. Unfortunately, due to delaying announcing earning and also the delay of earning itself, his integrity is in doubt. Worst still, he was accused of having fun doing all these serious endeavours. In addition, couple with huge investments with slow return investment, Bezos’s intention was anticipated by the impatient shareholder as unfavourable.

Conflicting area would be rewarding talent as a motivation – this is mentioned in Bezos’s letter to the shareholder. There is always the trade off between the dividend expected by the shareholder and the compensation anticipated by the employee. Both of whom expected as high as possible in momentary term. Giving stock option ought to be explain clearly to the shareholder. This has be done well by Bezos also.

As the customer is now in ‘Keep informed’ portion, Bezos with his ‘cost conscious’ culture has showed interest in locking customer’s loyalty by providing long time investment service. This including strengthening brand awareness.

The suppliers can be placed in the “Min Effort’ section, as their power is low. Hence, Bezos’ s strategies mentioned least in this area.