Competitive Advantage and Internal Alignment at Amazon
Unit 3 Assignment: Competitive Advantage and Internal Alignment
In this assignment, you will describe how compensation programs can be aligned to help an organization gain and maintain a competitive advantage in the marketplace.
In this assignment, you will be assessed based on the following Outcome:
HR435-1: Discuss the reasons internal alignment is an important policy in compensation.
Choose an organization in which you are interested, and from which you can obtain the information required in this assignment below. You may want to choose a past or current employer, or you may choose any other organization that interests you. You may choose the same or a different organization from the previous unit. Research the organization through the company website as well as related articles available in the library, and answer the following questions in a 2–3-page paper:
Checklist:
Describe your selected organization's business strategy including mission, values, and goals. Identify its strengths, weaknesses, opportunities, threats, and competitors. What is your selected organization's current position in their marketplace and cite your evidence?
From what you have researched thus far about your selected organization, does it use compensation as a means to increase and sustain a competitive advantage? If so, how? If not, how could they?
Define internal alignment, and discuss why it is an important policy in compensation. (Describe the components of internal alignment, discuss how internal alignment is an important policy in compensation, and discuss the usefulness of internal alignment in compensation plans.)
If your organization was expanding to a foreign country, how would you determine competitive pay rates for the new location? Conduct research on the cost of living in one major international city. How do the rates compare to the local rates?
To successfully complete the paper, the following are the minimum requirements:
Review the grading rubric before beginning this assignment.
Compose a 2–3-page Microsoft® Word® paper in current APA format - 12-point font, double-spaced, indented paragraphs, citations, reference list, etc.
I also sent you the template that needs to be used.
Competitive Advantage and Internal Alignment
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Competitive Advantage and Internal Alignment
Introduction
Amazon company is the focal point in this paper based on the competitive advantage and internal alignment concept. Amazon is an international technology business focusing on online advertising, e-commerce, digital streaming, cloud computing, and artificial intelligence. The market capitalization of this company is $981.58 Billion as per the 2023 report, making it the 5th most prominent and valuable organization ("Amazon (AMZN) - Market Capitalization" 2023).
Question 1
Notably, this company has a concrete mission statement as it is the most customer-centric organization. It follows four simple regulation customer satisfaction is the ultimate goal based on long-term thinking, commitment to operational efficiency, competitor focus, and passion for invention. from the futuristic point of view, amazon targets the market orientation as its future mission. But, the primary mission statement of amazon is "serve consumers through online and physical stores and focus on selection, price, and convenience."
This organization has various principles it values; customer obsession, hiring the best, thinking big, ownership, earning trust, delivering results, the highest standards, inventing, simplifying, and bias of actions. In addition, amazon company is among the most significant organization in the world of its five primary objectives. From an economic perspective, it aims to achieve more business profits. Another goal is obtaining societal well-being by positively responding to corporate social responsibility. Moreover, it has a human objective of fulfilling its employee's well-being. From a national purpose, it targets creating fairness by treating all people equally.
Arguably, amazon is the most valuable and successful organization as it tries to utilize its business strengths. One of the major amazon strengths is having the potential for market dominance. It has a higher market share by establishing a concrete customer base and has created a cohesive competitive advantage by building efficient brand recognition. Secondly, it is the leading E-commerce organization with unique and differentiative products and services. Its diversity allows the company to generate more revenue by capturing different market segments (Baboolal-Frank, 2021). Additionally, the customer-centric analogy significantly enhances business Models and operation excellence, thus succeeding in the industry through a concrete customer base. Lastly, Amazon's efficient distribution network is another business strength that makes its business more effective, reliable, flexible, and convenient.
However, this organization has various weaknesses that limit the business from fully expanding and exploring its potential or becoming the best. One of the main drawback of this company is having limited physical retail stores, which makes it vulnerable to its high dependence on online platforms, as consumer behavior can affect the business. Secondly, strict rules and regulation is another weakness the company faces as it acts as barriers to the company since it limits the organization f...