Business-Level Strategies Paper
We have studied the differences in business-level strategies closely this week, but how might these differences relate directly to you? As you’ve learned, firms using a differentiation strategy will focus on drivers such as product features and customer service, while firms using a cost-leadership strategy will prioritize cost of inputs and economies of scale. These strategic decisions can have an impact on an employee’s experience with the firm’s work environment and culture. Hilton, Publix, and Wegmans Food Markets are companies that routinely end up on Fortune’s list of “100 Best Places to Work.” These companies use a differentiation business strategy. In contrast, Amazon and Walmart use the cost-leadership strategy; and as low-cost leaders, they do not rate nearly as well. According to inputs from the employee review site Glassdoor.com, only 56 percent of the employees working at Walmart would recommend the firm to a friend. Compare this to the over 80 percent who would recommend both Hilton and Wegmans Food Markets.
As you seek options for starting or growing your career, carefully consider the strategy the firm takes in the marketplace. By no means should you avoid low-cost leaders in lieu of strong differentiators (nor should you deem all differentiators as great places to work). Fast-paced organizations that focus on driving tangible results for the organization offer much to learn. For example, Amazon has been a very successful company for the past decade, and many employees have had multiple opportunities to learn enormous amounts in a short period. Amazon employees are encouraged to criticize each other’s ideas openly in meetings; they work long days and on weekends; and they strive to meet “unreasonably high” standards. The high standards and relentless pace are a draw for many employees who are motivated to push themselves to learn, grow, and create—perhaps beyond their perceived limits.
Many former employees say the nimble and productive environment is great for learning and the Amazon experience has really helped their careers expand. Now consider the following questions and respond in a two-to-three page APA formatted paper.
Employees and consultants say the Amazon workplace is the epitome of a “do more for less cost” environment. We recognize this is a hallmark goal of a cost-leader-ship business strategy. But ask yourself this key question, Is it the type of high-pressure work environment in which YOU would thrive?
Amazon has surpassed 650,000 employees and is the second publicly traded company in the world to hit $1 trillion market capitalization (just after Apple). The company offers bold new ideas as a retailer and is under an intense pressure to deliver on its goals. The allure from this type of success is compelling and offers tremendous rewards to many employees, shareholders, and customers. What aspects of success are you seeking in your professional career?
Before you launch into a new project, job, or firm, or even before you make a change in industry in the effort to move forward in your career, always consider the trade-offs that you would and would not be willing to make.
Business-Level Strategies Paper
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As noted in the provided background information, Amazon has over 650,000 employees and over $1 trillion market capitalization. The entity capitalizes on novel, innovative ideas and increased competition in the contemporary business environment, which puts it under rising pressure to achieve a competitive advantage and objectives at the same time. Amazon’s approach to conducting business provides numerous benefits to each of its stakeholders. Consultants and employees reiterate that Amazon's workplace constitutes the embodiment of a “do more for less cost” business environment, which can be theorized as the central objective of a cost-leadership business strategy. In this paper, I will argue that Amazon’s high-pressure work environment is not one that I would thrive in because I value differentiation strategy, which offers continuous innovation and service excellence opportunities. The fundamental aspects of success in my professional career are excellent customer service, productivity, and working for an outstanding organization.
The emphasis on service excellence is a more attractive corporate mission and aspect of career success for workers rather than focusing on cost reduction and frugality, as Amazon encourages. I would pride myself on working in a company that values excellence. I find it a challenging endeavor to be a cost-effective employee, and this partially explains the premise that despite Amazon’s leading American Customer Satisfaction Index, it does not prove to be on my list of best firms to work for (Wirtz, 2020). I believe that Amazon’s cost-leadership strategy would achieve higher levels of productivity while squeezing the energy out of me, which is not sustainable, as is the case for the differentiation strategy (Shah & Ahmad, 2019). Other disadvantages of working for a company that focuses on cost leadership include financial cuts in areas I value in my professional career, including innovation, customer service, and customer preferences. It is also likely that customers would view Amazon negatively and make accusations that it is sacrificing quality in order to maintain low product prices.
Differentiation and cost-leadership strategies can be theorized as contradictory investments and corporate processes that an employee s