Amazon’s strategic direction can be identified in its current strength as the world’s largest online retailer. Amazon has branched out into numerous different product and service categories, while also aiming to improve its delivery services. Although Amazon began as an online bookseller, the company soon expanded into offering nearly any product imaginable: cars, groceries, household goods, clothes, electronics, etc. The company also now has an online streaming service adopting the Netflix model.
The company’s strengths therefore include not only its vast array of products, but also its competitive pricing, fast delivery systems, and reputation and renown as the world’s largest retailer. This last strength is significant because it has become synonymous with online shopping. Whenever a customer anywhere around the world wishes to purchase something online, there is a good chance that Amazon will be the first place the customer checks, so it can capitalize on its brand recognition.
While Amazon has dominated the online shopping industry, its strategic direction can be seen in how it wishes to improve upon this service. Amazon has opportunities to increase the speed of delivery, which can be seen in its experimentation with drone technology (Amazon, 2019). Similarly, another key opportunity would be to continue to establish relationships with retailers in numerous global territories. Amazon has already achieved this, but this represents a continuing opportunity as more markets develop, internet technologies advance, and economic growth in many developing countries continues to increase.
Collectively, these opportunities will allow Amazon to retain its global dominance, as it will not only have access to more potential goods, but it will also have access to more potential consumers. Similarly, increasing the speed of delivery for many of its products, through a series of local warehouses and new technology such as drones, will compel many consumers to choose Amazon over brick-and-mortar stores.