Consulting Report for Amazon

Consulting Report for Amazon
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Consulting Report for Amazon
Amazon has a functional organizational structure that focuses on various business functions and components (Organimi, 2020). This report aims to identify the business units under which Amazon operates, analyze the identified business segments, provide Amazon's key competitive strategy, and identify Amazon's strategies applicable to the current business.
Functional Areas/Business Unit
Amazon operates in three functional areas: North America, International, and Amazon Web Services (AWS) (Reiff, 2021). The first two units are the geographical breakdown of the company's retail trade. They obtain income from sales in North America and other parts of the world. They also generate income from subscriptions and export sales (Kimble & Bourdon, 2013). The strategic advantage of dividing company elements into geographic units is that it allows Amazon to address the problems relevant to each region accurately.
Analysis of Functional Areas/Business Unit
As stated, Amazon functions under North American, International, and AWS segments. The North American Segment dominates the company's net sales, accounting for around $ 236.3 billion based on the 2020 financial year (Reiff, 2021). That is an increase of about 38.4% from the previous financial year, and it makes up to 61% of Amazon's net sales for the year (Ritala et al., 2014). During the 2020 financial year, the North American segment's operating income was about 38% of all three components' total operating (Reiff, 2021). Apart from retail, the North America segment achieves Amazon's strategic and operational goals through subscriptions (Organimi, 2020).
Amazon's international segment also includes export sales from globally-focused online stores. It finally generated an operating profit of around $717 million in the 2020 financial year after about three consecutive years of recording losses (Reiff, 2021). The international segment accounts for approximately 3% of all segments' operating income. Its net sales have increased to around 104.4 billion, representing roughly 27% of the total net sales (Reiff, 2021).
The last unit, AWS, offers services to businesses, academic institutions, and government agencies. According to Amazon, this segment provides various solutions like content delivery, hosting applications and websites, and enterprise information technology (Kimble & Bourdon, 2013). It generated estimate...