Amazon: Changes To The Business And Corporate Strategy

Amazon Section number Group number The names of your member 1. How should Jeff Bezos go about implementing any changes to the business and corporate strategy recommended earlier? What changes to structure and process need to take place? Briefly write your recommendations. Potential caveats (pitfalls) to recommendations Recommendation Amazon is a retailer, while Amazon Web Services (AWS) has a different customer base and external customers may choose either platform when there are shared services. Spinning-off the AWS, the company’s cloud computing segment is a viable option to improve competiveness. The revenue associated with AWS will likely increase as many industries increasingly rely on data as there is growth and demand for cloud computing services. AWS is already the market leader in the cloud computing market and as a standalone business AWS will likely capture a larger market share when there is focus on improving capabilities. The emergence of Alphabet’s Google Cloud Platform and Azure will increase competition and likely to affect the company’s profitability over time. The challenge then is maintaining and even expanding the market share in the cloud computing services. AWS reported $ 18 billion revenue in 2017, lower than Microsoft’s cloud service but Amazon has experienced a more rapid growth (Rapier, 2018). Amazon uses low prices as the corporate strategy and lets the users to utilize Amazon as a platform to purchase what they want in a one-stop shop online retail busisss. However, spinning AWS would mean that the business would be more independent to make pricing decisions that make the company competitive and profitable. As such, Amazon may lower the prices slightly. Furthermore, this would require that AWS also maintain a price brand that differs from that of Amazon, with focus on both quality and price. There is no guarantee that lowering prices will help to improve the company’s market share as has happened when Amazon launched Fire TV and phone (Rothaermel & Mc...