Write a 500-750-word summary of how the reports for Parts I, II, and III of the assignment were influenced by the analysis prepared in previous assignments completed. Without prematurely determining
Running Head: CLC – Amazon 0
MGT 660
January 20th, 2021
AMAZON TABLE
The comparative data table.
Amazon (in millions) | Alibaba (in millions) | E-bay (in millions) | |
2019 | $ 18, 878 | $4,794 | $562 |
2018 | $ 13, 814 | $2,534 | $250 |
“Derived from: amazon SEC Filings. (2020), Alibaba SEC Filings. (2020), & E-bay SEC Filings. (2020).”
Amazon is one of the international companies whose stores are located worldwide. The core advantage of being a global organization is that the organization allocates a relatively larger budget, meaning more experienced and exposed experts will be used throughout the process. However, my suggestion for Amazon in terms of marketing expenses moving forward is to implement a budget that supports convenience, experimental location and branding consistency. (Stice-Lawrence, L. 2020).
This is important since when one sees an Amazon's product, they will recognize it. Since the logo used has remained the same for the past several years. Furthermore, despite the several redesigns made to the company, one notices to due to the arrow that moves from A to z, which means that the company sells every product named from a to z and the smile experienced by customers after a satisfactory shopping. The promotional activities that amazon should implement will be divided among different categories such as using social media sites like Facebook, Twitter, etc., secondly is having a website where prospective customers make purchases, implementing television advertisements and digital marketing. Additionally, Amazon has moved a step further to develop a mobile application.
The customers of Amazon are highly pleased with the customer service they experience. Additionally, there is a customer care agent who is available on a 24hour basis to address customer's concerns. Also, the products purchased from amazon are delivered at any location based on customer's choices, which makes them happy. Furthermore, there is a fourteen-day free return period, wherein case one is not satisfied with the product delivered; they may return it for free and obtain a 100% refund, which helps in creating confidence in customers.
On the other hand, Amazon has gifts for customers, which largely depends on the product purchased. For example, after buying a television, one is often gifted with a wall blanket or TV mount. This helps customers get value for their money. During the current pandemic, customers have been given free hand sanitizers after making any purchase. This allows the customers to feel that the company is concerned about their wellbeing, thus promoting loyalty.
Additionally, almost every product sold on Amazon is discounted, implying that the product's price is relatively lower compared to purchasing from physical shops. The customers, after making a purchase, are awarded redeemable points based on the amount of money spent during a purchase. This enables customers to redeem them and make free purchases.
In the past few years, amazon began tracking their customers' activities where machine learning, and business intelligence are used to understand customers' history of purchases and preferences. For example, if a customer likes purchasing a red jacket during the Christmas period, Amazon sends notifications and emails reminding the customer about the availability of red jackets in their store.
Lastly is that there are several competitors of amazon, such as Alibaba, eBay, etc. However, based on the figures on my comparative table, we understand that amazon spends vast amounts of money during advertisements and marketing processes. Amazon has also been targeting young and unexplored markets in Asia and Africa, which are not yet accessed by its competitors making it highly successive. (White, S. 2020).
Perceptual Mapping
For Amazon to have success, it is vital for their business to have a clear understanding of how their products and services are perceived by consumers. Perceptual mapping allows this as it is a graphic illustration of where a brand, product and services, or company in relation to competitors These insights help Amazon understand their target consumers and create useful products accordingly. Amazon can now make value judgments to reposition themselves on certain attributes that the company deems relevant to market competitiveness. From this, innovation is more probable. For example, Amazon has repositioned themselves with the use of in-home smart speakers. Through the smart speaker creation and Alexa digital assistant, Amazon has disrupted the industry by innovation new means of online shopping through voice ordering. As of now, the service it is slow to take off, but it is expected to explode in value. In all these insights given by perceptual mapping will greatly help Amazon stay ahead of market trends.
High price | |||||||||
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Lower customer ratings | Higher customer ratings | ||||||||
Amazon’s Organizational Structure
Amazon’s Current Organizational Structure:
Jeffery Bezos, CEO
2.Brain Olsavsky, SVP & CFO
3.Wei Gao, VP Technical Advisor to CEO
. 4.Jeff Wilke, CEO of Worldwide Consumer
5.Dave Clark, SVP, Worldwide Operations
6.David Treadwell, VP, eCommerce Foundation
7.Doug Herrington, SVP, North America Consumer
8.Gur Kimchi, VP, Prime Air
9.Neil Lindsay, VP, WWP Prime and Marketing, WW Advertising and Marketing
10.Pat Bajari, VP and Chief Economist
11.Russell Grandmetti, SVP International Consumer
12.Steven Kessel, SVP Physical Stores
13. Tony Hsieh, CEO, Zappos
14.Yunyan Wang, Technical Advisor, Consumer
15.Jay Carney, SVP, Corporate Affairs
16.Brian Huseman, VP, Public Policy, Americas
17.Christina Lee, VP, Consumer PR
18.Drew Herdener, VP, PR, Corporate Communications
19.Mary Camalobal PR, AWS
20.Michael Punke, VP, Global AWS Public Policy
21.Paul Misener, VP, Global Innovation Policy
22.Susan Pointer, VP, Public Policy, EMEA & APAC
23.Tamara Golihew, Director of PR, Amazon Studios
24.Vicky Eguia, Director of Publicity, Amazon Original Movies
25.Jeff Blackburn, SVP, Business and Corporate Development
26.Col Needham, Founder & CEO, IMDb
27.Dan Jedda, VP, DAC Finance
28.David Shearer, VP, WW Business Development
29.Greg Hart, VP, WW Amazon Video, DV Core Platform,
30.Jennifer Salke, Head of Amazon Studios, DV Prime Video TV
31.Paul Kotas, SVP, Amazon Advertising
32.Peter Krawiec, VP, WW Corporate Development
33.Steve Boo, VP Digital Music
34.Beth Galetti, SVP, human resources
35.Andy Jassy, CEO of Amazon Web Services
36.Adam Bosworth, VP, AWS New Products
37.Alex Yung, VP, AWS Sales China
38.Ariel Kelman, VP, AWS WW Marketing
39.Babak Parviz, VP, Grand Challenge
40.Bing Gordon, Strategic Advisor
41. Charlie Bell, SVP Utility Computing Services
42.Doug Yeum, Director, Technical Advisor, AWS
43.Emmett Shear, CEO, Office of CEO
44.James Hamilton, VP/Distinguished Engineer, Aws
45. Michael Frazzini, VP, Game Services and Studios
46.Mike Clayville, VP, WW Sales & BD, AWS Commercial Sales
47.Peter DeSantis, VP, AWS Global Infrastructure
48. Stephen Schmidt, Chief Info Sec Officer, AWS Security
49.Teresa Carlson, VP, Worldwide Public Sector Sales
50.Werner Vogels, VP, and CTO
51.David Zapolsky, SVP & General Counsel
52.Dave Limp, SVP, Amazon devise, digital management
53.Gregg Zehr, President, Lab126
54.Jae Park, Head of UXDesign, Devices and Services
55.Jamie Siminoff, CEO, Ring
56.Jorrit Van der Meulen, VP Amazon Devices International
57.Linda Ranz, Technical Assistant, Amazon Devices
58.Lindo St. Angel, VP, Hardware
59.Marc Whitten, VP, Devices
60.Robert Stites, VP, Operations and Supply Chain
61.Robert Williams, VP, Software
62.Tom Taylor, SVP, Alexa Management
Amazon’s New Organizational Chart:
Jeffery Bezos, CEO
2.Brain Olsavsky, SVP & CFO
3.Dan Jedda, VP, DAC Finance
4.Wei Gao, VP Technical Advisor to CEO
5. Yunyan Wang, Technical Advisor, Consumer
6. Jeff Wilke, SVP of Worldwide Consumer
7. Dave Clark, SVP, Worldwide Operations
8. David Treadwell, VP, eCommerce Foundation
9. Doug Herrington, SVP, North America Consumer
10. Neil Lindsay, VP, WWP Prime and Marketing, WW Advertising and Marketing
11. Pat Bajari, VP and Chief Economist
12. Russell Grandmetti, SVP International Consumer
13. Steven Kessel, SVP Physical Stores
14. Jay Carney, SVP, Corporate Affairs
15. Brian Huseman, VP, Public Policy, Americas
16. Christina Lee, VP, Consumer PR, Corporate Communications
17. Mary Camalobal PR, AWS
18. Michael Punke, VP, Global AWS Public Policy
19. Paul Misener, VP, Global Innovation Policy
20. Susan Pointer, VP, Public Policy, EMEA & APAC
21. Jeff Blackburn, SVP, Business and Corporate Development
22. David Shearer, VP, WW Business Development
23. Greg Hart, VP, WW Amazon Video, DV Core Platform
24. Jennifer Salke, Head of Amazon Studios, DV Prime Video TV
25. Paul Kotas, SVP, Amazon Advertising
26. Peter Krawiec, VP, WW Corporate Development
27. Steve Boo, VP Digital Music
28. Tamara Golihew, Director of PR, Amazon Studios, Amazon Original Movies
29. David Zapolsky, SVP & General Counsel
30. Dave Limp, SVP, Amazon Devise, Digital Management
31. Jae Park, Head of UXDesign, Devices and Services
32. Jorrit Van der Meulen, VP Amazon Devices International
33. Linda Ranz, Technical Assistant, Amazon Devices
34. Lindo St. Angel, VP, Hardware
35. Marc Whitten, VP, Devices
36. Robert Stites, VP, Operations and Supply Chain
37.Robert Williams, VP, Software
38. Tom Taylor, SVP, Alexa Management
39. Babak Parviz, VP, Grand Challenge
40. Beth Galetti, SVP, Human Resources
Organizational structure can have a lasting impact on a business’s short- and long-term growth. The proposed organizational structure above for Amazon reduces the number of executives and flattens the hierarchy. By reducing the number of executives Amazon can save money in the high salaries that are normally paid to executives. Amazon will also gain employee understanding through flattened hierarchy.
A flat hierarchy of organizational structure can lead to managers being able to make better cost-effective business decisions (Bhasin, 2018). The reason more cost-effective decisions can be made is the executive at the top of a division will need to be more in tune with the business as there are less executives between them and the product. With less people between the upper executives and the lower-level employees are will be an improvement in communication (Bhasin, 2018). An improvement in communication can lead to better decision making by top executives.
Another change in the organizational structure reduced the number of executives that did not have any direct reporting executives. This number started at four executives and in the new organizational structure the number would be three. These three are the SVP & General Counsel, VP, Grand Challenge, and SVP, Human Resources. These roles are specific and do not require a large number of executives to manage. For example, the Amazon Devise, Digital Management executive requires a large number of supporting executives as this is a key aspect to the business. One of the individuals that saw a gain in a direct report was the Technical Advisor to CEO by having a Technical Advisor in Consumer underneath them. By having the advisory group work together the Technical Advisor to the CEO can give advice on the company as a whole better. With advisors in more areas the overall advice to the CEO should improve.
Through the organizational changes above Amazon can expect to see an improvement in communication between the entire executive team. With better communication in the executive team top executives will be able to make more informed decisions which will lead to strong, more effective decisions for the company as a whole. This new organizational structure will improve division collaboration and have all executives working towards the same goal of improving Amazon as a whole.
Reference
Bhasin, H. (2018, March 12). Advantages of Downsizing and A Flat Hierarchy to an organization. Retrieved January 20, 2021, from https://www.marketing91.com/advantages-of-downsizing/
Kim, E. (2019, January 23). Amazon's executive org chart, revealed. CNBC. https://www.cnbc.com/2019/01/23/who-are-amazons-top-executives-2019.html.
Officers and directors. Amazon.com, Inc. - Officers and directors. https://ir.aboutamazon.com/officers-and-directors/default.aspx.
Salary.com, S. built by: AMAZON COM INC Executive Salaries & Other Compensation. Salary.com. https://www.salary.com/tools/executive-compensation-calculator/amazon-com-inc-executive-salaries.
Shopkick, (2021). Successful brand repositioning. Retrieved from: https://www.shopkick.com/partners/blog/successful-brand-repositioning-examples-designed-to-reach-a-greater-consumer-audience-slp-fc/
Stice-Lawrence, L. (2020). Regulatory Spillover and Monitoring Frictions at the SEC. Available at SSRN 3485468.
White, S. (2020). Amazon and Whole Foods: adventures in grocery shopping. The CASE
Journal.