A Glimpse into Amazon’s Corporate Strategy

With the declining bookstore revenues projected to continue through 2012, one company that may have spurred this slide is Amazon.com Inc. (NASDAQ:AMZN). Thanks to its Kindle, more consumers are turning to e-books.

What’s interesting about Amazon, is its corporate approach has been more of a marathon than a sprint. CEO Jeff Bezos has said his company is willing to let people scratch their heads and endure some negative PR from their actions as long as Amazon keeps their eye on the big picture.

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Amazon has had a great year and has seen its star rise without the invention of a new product or service. It has gained power by taking an industry that has been there for the taking. Unlike other technology companies, such as Google, Inc. (NASDAQ:GOOG), Facebook and Apple Inc. (NASDAQ:AAPL), it’s story comes from the corporate strategy, according to Forbes.

Take a look at what Amazon has done to the market.

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Causing Disruption

Amazon didn’t come out with one great product that everyone coveted; it disrupted an entire industry. It shook things up. Take the book industry, for example:

  • One-click shopping
  • Free shipping over $25
  • eBooks that come very close to traditional books
  • offering Kindle digital options such as the reading of blogs, “singles” and more recently high-quality graphics
It may be difficult to see all the subtle and smart moves that Amazon has made, but if you’re a constant user, you’ll see how you’ve evolved with the company as well.
Playing Games
Amazon’s moves are not only very strategic, it also has the extraordinary ability to pick the correct game to play against its opponent. It doesn’t waiver and is soon performing better than anyone else out there. Amazon stays detached, always looking ahead to the next move. Amazon made three solid moves into the tablet market to take on Apple’s (NASDAQ:AAPL) iPad with the Kindle Fire: cloud provisioning, spending money for content and becoming a commodity.
Having a Weakness
Every company has a weakness and for Amazon (NASDAQ:AMZN), it could be public relations. Amazon may have Bezos to thank for this. For Amazon, they’re not the most trusted company out there—they hold their cards close to the vest. Whether it’s a customer, supplier, affiliate or partner, these groups enter into Amazon relationships warily. A day will come when Amazon will reach out to these audiences and the much-needed relationship may not be there when they need it.