Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version
In a December 1, 2013, interview on American television program 60 Minutes, Amazon CEO Jeff Bezos announced that Amazon would soon change the future of online shopping by enabling customers to receive items within thirty minutes of ordering. This delivery service, Bezos said, would be powered by unmanned autonomous drones and could be offered as soon as 2015. The market reaction was instantaneous and positive. Still, Amazon needed some answers before it could launch autonomous delivery services: Were customers ready to embrace and pay for this type of delivery service? Would regulators allow it? Should Amazon make or buy its drones? Would it be too risky for Amazon to wait to launch this service? If it decided to go ahead, how should it launch, and to whom?
Swot Analysis of "Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version" written by Russell Walker, Rafique Jiwani includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Amazon Unmanned facing as an external strategic factors. Some of the topics covered in Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version case study are - Strategic Management Strategies, Innovation, IT, Operations management, Productivity, Risk management and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version casestudy better are - – increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs, geopolitical disruptions, customer relationship management is fast transforming because of increasing concerns over data privacy, there is increasing trade war between United States & China, there is backlash against globalization, increasing household debt because of falling income levels,
talent flight as more people leaving formal jobs, technology disruption, etc
Introduction to SWOT Analysis of Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Amazon Unmanned, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Amazon Unmanned operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version case study
2. Improving business portfolio management of Amazon Unmanned
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Amazon Unmanned
Strengths Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Amazon Unmanned in Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version Harvard Business Review case study are -
Effective Research and Development (R&D)
– Amazon Unmanned has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Amazon Unmanned is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Russell Walker, Rafique Jiwani can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Cross disciplinary teams
– Horizontal connected teams at the Amazon Unmanned are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Sustainable margins compare to other players in Strategy & Execution industry
– Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version firm has clearly differentiated products in the market place. This has enabled Amazon Unmanned to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Amazon Unmanned to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Amazon Unmanned is present in almost all the verticals within the industry. This has provided firm in Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Amazon Unmanned digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Amazon Unmanned has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Training and development
– Amazon Unmanned has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Strong track record of project management
– Amazon Unmanned is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Amazon Unmanned is one of the most innovative firm in sector. Manager in Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Amazon Unmanned has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Amazon Unmanned has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Low bargaining power of suppliers
– Suppliers of Amazon Unmanned in the sector have low bargaining power. Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Amazon Unmanned to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Amazon Unmanned is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Amazon Unmanned is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Amazon Unmanned is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Amazon Unmanned has relatively successful track record of launching new products.
High cash cycle compare to competitors
Amazon Unmanned has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to strategic competitive environment developments
– As Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version HBR case study mentions - Amazon Unmanned takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Need for greater diversity
– Amazon Unmanned has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High operating costs
– Compare to the competitors, firm in the HBR case study Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Amazon Unmanned 's lucrative customers.
Interest costs
– Compare to the competition, Amazon Unmanned has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow decision making process
– As mentioned earlier in the report, Amazon Unmanned has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Amazon Unmanned even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version, in the dynamic environment Amazon Unmanned has struggled to respond to the nimble upstart competition. Amazon Unmanned has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Amazon Unmanned has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Amazon Unmanned needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Opportunities Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version are -
Loyalty marketing
– Amazon Unmanned has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Amazon Unmanned to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Amazon Unmanned to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Amazon Unmanned can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Developing new processes and practices
– Amazon Unmanned can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Creating value in data economy
– The success of analytics program of Amazon Unmanned has opened avenues for new revenue streams for the organization in the industry. This can help Amazon Unmanned to build a more holistic ecosystem as suggested in the Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version case study. Amazon Unmanned can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Amazon Unmanned can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Amazon Unmanned to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Building a culture of innovation
– managers at Amazon Unmanned can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Amazon Unmanned can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Amazon Unmanned to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Amazon Unmanned can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Amazon Unmanned can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Amazon Unmanned can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Amazon Unmanned can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Amazon Unmanned in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Environmental challenges
– Amazon Unmanned needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Amazon Unmanned can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Amazon Unmanned business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Amazon Unmanned
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Amazon Unmanned.
High dependence on third party suppliers
– Amazon Unmanned high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version, Amazon Unmanned may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Amazon Unmanned.
Regulatory challenges
– Amazon Unmanned needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Technology acceleration in Forth Industrial Revolution
– Amazon Unmanned has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Amazon Unmanned needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Amazon Unmanned can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version .
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Amazon Unmanned will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Amazon Unmanned in the Strategy & Execution sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Amazon Unmanned is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Reinventing E-Commerce: Amazon's Bet on Unmanned Vehicle Delivery, Spanish Version is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Amazon Unmanned needs to make to build a sustainable competitive advantage.
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