Amazon Expansion Plan Brick and Mortar Strategy

Therefore, the company needs to adopt a good expansion plan so as to ensure it continues to expand but at the same time benefits people and its environs. The best alternative is to focus on a brick and mortar strategy. Statement of problem, opportunity and objectives For the last three years, Amazon has seen higher levels of profit than ever before. In fact, for the first quarter of 2018, the company so profits rise tremendously and the company reached new heights in terms of market shares, and it became the second most valuable company in the world after Apple, with a market capitalization of $ 750 billion. Consequently, Jeff Bezos became the richest man on earth. The company has further ventured into movie production and so far has produced a few movies through Amazon Studios.

The company has different retail websites for most of the international countries e. g. in the UK, US, Mexico, Germany, Spain and so forth. The company’s main objective has been to offer its customers attractive, easy and secure e-commerce services (Lawrence, 2017). Also, the company has focused in developed countries like the US and has limited penetration of developing countries. Lastly, the company has limited brick and mortar presence, which means it cannot sell products that sell more in physical stores. Opportunities on the other hand include the need to venture into developing countries. The company needs to do this before other companies take root. Also, the company needs to expand its brick and mortar presence so as to compete with companies like Walmart with more physical presence. Shoe stores are also in danger of being put out of businesses.

Grocery stores are also affected. Apart from putting retail shops out of businesses, the company is also being blamed for putting Americans out of their jobs. By putting other retail stores out of business, the company has led to loss of jobs by many people. Recent figures show about 149,000 Americans lost their jobs due to this. For one, the company will benefit from local attraction, as it will benefit from the local traffic as well as have a sense of community which it rarely gets through online retail. In addition, by setting up lots of brick and mortar stores, the company will be able to employ a lot of people from the community. As such, it will reduce the criticism it has gotten due to its promotion of joblessness through its current expansion strategy.

Also, brick and mortar strategy means the company will have showrooms for its goods, as majority of people prefer to shop in real stores where they can see and feel goods. Consequently, the company will be able to increase its customer base. Decision, course of action and implementation. The alternative to choose from is brick and mortar strategy because of its many advantages. A physical location will be a big boost to the company. Also, it will offer an opportunity for the company to compete with the likes of Walmart who have specialized in this kind of strategy. Therefore, the company has to begin setting up physical locations from which it could offer its goods and services. SWOT Analysis & Recommendations http://panmore. com/amazon-com-inc-swot-analysis-recommendations Mehra, A. Kumar, S. Raju, J. S.