1. Is Amazon becoming a High-Technology Company? (Current Situation/History) 2.

Question

1. Is Amazon becoming a High-Technology Company? (Current Situation/History)

2. Can Amazon compete with Samsung, Sony & Apple? (External Environment)

3. Should Amazon collect state sales tax in every state? (Internal and External Environment)

4. Should Amazon invest in same day delivery? (Internal Environment)

5. Does it make sense for Amazon to sell Kindle below its cost? (Analysis of Strategic Factors) Should Amazon expand its streaming content? (Analysis of Strategic Factors)

NOTES: In the Governance section, be sure to discuss and address all Governance for Amazon i.e. who is the CEO/COB, who are the Vice Presidents, how are the Board of Directors selected or elected, terms for boards, any financial commitments for board members, sub-committees--the whole governance structure for Amazon As you analyze the strategic initiatives for Amazon, you will make recommendations for innovation and creativity of strategic initiatives to keep Amazon competitive in this market (remember that our second case is Netflix which is also in this market)

Explanation / Answer

1. Yes, Amazon is quickly advancing towards becoming a High-technology company. It is evidenced by their current business model, which, unlike its earlier product-focused model now relies on providing services to their customers as well. This includes devices such as Kindle, Amazon fire stick as well as Amazon AWS services for large-scale corporate businesses. If Amazon continues in the same direction, it can easily be considered as a High-technology company.

2. In terms of capital investment and research, yes, Amazon can compete with both Apple and Samsung, they have the reach, the customer support as well as market knowledge. But, if we consider the products they sell, compared to the offering by Samsung and apple, there is no net competition between them and Amazon> unless Amazon can come up with new value-based offerings, they will not be able to compete with market leaders such as Apple and Samsung in terms of the products they sell, even if they can compare in the services.

3. No, Amazon should keep their current business structure and follow it rather than collecting state taxes separately. As a business model, its simpler for Amazon, even if it causes lesser profits, it is easier to maintain and would not require the constant change in implementation every time the tax policies of the government change. In return, it would allow an easier back-end implementation of the services as well as the strategic departments which will be more productive for Amazon.

4. Yes, Amazon should invest in same day delivery. In order to crush the competition that provides this service, Amazon needs to invest in the service to cater to the needs of the people. It has been seen that customers are reluctant in purchasing a product that has to wait for, for a period of 2 to 3 days they might lose interest or they may not require the product anymore., same day delivery allows Amazon to cater to the needs of these communities as best as they can.

5. Yes, if Amazon sells kindle below its price, it would help them increase the market for their kindle marketplace due to more devices being purchased, less quantity sold at a higher price would still be equal to more quantity sold at a lower price in terms of net profitability.

Yes, in order to compete with competitors such as Netflix, Amazon needs to increase the streaming content of their services which would essentially allow it to compete with Netflix as a service, as well as compete with Spotify in terms of music content and at the same time, allow people a better-bundled offer with both video and audio streaming capabilities as well as other services which Amazon offers in the same package for amazon prime.

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