Amazon.comRedefining its Mission & Vision

Introduction●Amazon.com’s is Seattle, Washington based online retail store with annual revenue of $74B (2012).

● The company was founded in July 1995 by Jeff Bezos.

●Amazon.com released its IPO (AMZN) in May 1997 and it is traded on NASDAQ.

●As of December 31,2013 Amazon.com has 117300 strong work force.

●The company sells to all 50 states in USA and to 45 countries. (Amazon.com, 2013)

Products & Services●Sells thirds party products online on percentage basis.

●It has wide product spectrum, which ranges from books, movies to kids products and even extending to automotive and industrial parts.

●Provides e-commerce platform to many merchants and to individual sellers.

●In house products: Ebooks, tablet, phone, entertainment content.

Existing Mission Statement

“To be Earth’s most customer-centric company where people can find anything they want to buy online.”

Key StakeholdersFollowing are the key stakeholders, arranged according the weightage:

●Customers●Employees●Shareholders

What Is Wrong?●There is nothing wrong with the mission

statement of the company, but the vision of achieving is quite blurry. Let us see why?

●Widely spread and over extended range of services.

●Their profit margins are thin but the company is growing its products, services and customer base.

●Absence of surplus cash, exposes the company to market fluctuations

●Existential threat to company from competitors

Looking at the following figures it can be concluded that Amazon.com is focused more on market acquisition.

How Can We Fix It?●Focus on high profit margin products and

services●Develop cushion of surplus cash●Let the business mature●Increase in content base business as

compared to percentage base. Just like Netflix.●Develop ecosystem amazon.com family of

products●Develop programs focussing loyal customer

base.

Example to support our ArgumentNetflix example

Customer Loyalty●There is no guaranteed recipe of success in

any business but customers returning to the business, improve the chances of making one.

●Providing incentive to use additional amazon.com service, give rich customer experince and binds customer to business

Revised Mission Statement

“Amazon.com, building trust by providing quality product and services now and forever”

● Existential value: the value lies in existence of the company

● Social Responsibility: Maintaining healthy market competition and providing the customer options to choose from.

● Economic Values: Competition keeps prices in check.

Value of New Mission Statement

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