Abstract
This article presents an in-depth analysis of the Amazon’s corporate landscape by spotlighting the company’s mission, vision, core values, objectives, and driving forces behind customer-centric innovation. The article discusses how company’s strong strategic focus on the sustainability, cloud computing, and digital entertainment sets the trajectory towards market dominance. The article is useful for anyone who seeks an in-depth understanding of the Amazon’s strategic framework, and its influence on the e-commerce landscape.
1. Introduction
In dynamic ecommerce landscape, Amazon is re-defining the industry standards. In 2023, Amazon was considered the world’s most valuable brand, with net worth of $299.28 billion. Interestingly, the company secured the top spot despite losing $51 billion in value.
This article explores the foundational elements of Amazon that have led the company towards success. By analysing the Amazon’s mission, vision, core values, and objectives, the article unveils a strategic narrative that propels the company towards unparalleled market leadership.
2. Company Overview
| Company name | Amazon.com, Inc. |
| Year established | July 05, 1994 |
| Headquarters | Seattle, Washington, USA |
| CEO | Andy Jassy |
| Industry | E-commerce |
| Number of countries | 50+ |
| Number of employees | 1,608,000 |
| Revenue ending June 30, 2023 | $538.046 Billion |
| Market capitalization 2023 | $1.452 Trillion |
3. Amazon mission and vision statement 2024
3.1. What is amazon’s mission statement 2024?
Amazon’s mission is:
“To offer our customers the lowest possible prices, the best available selection, and the utmost convenience”
The mission statement reflects the Amazon’s promise to offer an attractive e-commerce platform that could fully satisfy the needs of targeted customers. The mission statement focuses on three key variables:
- Convenience
- Selection
- Price
3.2. Three components of mission statement
3.2.1. Convenient access
Amazon strives to offer the most convenient access to its products and services. The company has strong global presence in more than 50 countries around the globe.
Following graph shows the total monthly visits to Amazon’s website from different countries:
Source: Statista
The graph shows that the Amazon draws most visits from USA, followed by Japan and Germany. Its Amazon.com domain has 2.2 billion monthly visits.
Here is another graph showing Amazon’s strong presence in world’s leading markets:
Source: Statista
The graph shows that other than USA, Amazon’s services are widely accessible in Germany, Japan, United Kingdom, and other parts of the world as well.
In 2022, Amazon had more than 300 million active users, which grew to around 310 million in 2023. As of 2023, Amazon made more than $1.4 billion net sales revenue, primarily due to its wider access to the market.
Amazon offers a wide variety of channels and platforms to shop, such as- mobile app, website, physical stores, voice assistants, and third party sellers. Amazon actively invests on the innovative solutions and technologies to enhance the customer experience, such as- Kindle, AWS, Alexa and Prime.
By offering a wide variety of channels and expanding presence around the world, Amazon fulfils its mission to ensure a convenient access for targeted customers.
3.2.2. Vast product selection
Amazon offers wide and best available selection of products and services that cover wide ranging needs and categories. As of 2023, Amazon has more than 350 million products on its website, including- groceries, clothing, electronics, books and more. Amazon also offers exclusive products and own branded products, like- Amazon Basics, Fire, and Echo. It offers wide ranging services, like- photos, gaming, music, and prime video.
In 2023, Amazon has more than 12 million products across different categories. In same year, Amazon sold 375 million items on Prime Day- making it biggest prime day event.
By offering a vast product selection, Amazon fulfils its mission to offer the best available selection.
3.2.3. Lowest possible prices
Amazon offers lowest possible prices without making any compromise over quality. The company leverages its efficiency, scale, and innovation to reduce the cost. The programs like ‘Prime’, ‘Deals and Coupons’, and ‘Subscribe and Save’ help customers save money.
Amazon is well-known for beating the competition by offering lowest possible prices on its millions of products. Here is the 2023 price comparison of Amazon with Azure and Google Cloud Platform.
Source: Cast.AI
Amazon fulfils its mission to offer customers the lowest possible prices by giving best deals. Click here to see Amazon versus Flipkart price comparison.
Above three components constitute the Amazon’s mission statement. A deeper analysis reveals four key principles that are the pillars on which the mission statement is built.
3.3. Four principles of Amazon mission statement
3.3.1. Customer obsession
Amazon is known for its customer centric approach. The company strives to win the customers’ trust by focusing on their needs rather than competitors’ actions.
However in last few years, the intensifying competition has somehow shifted the Amazon’s focus away from customers to competitors, which is depicted in following graph as well:
Source: Statista
The graph shows that the customer satisfaction decreased significantly from 2012 to 2021. In 2021, the customer satisfaction reached its lowest. Although, the company has increased the figure in 2022, but still, a significant room for improvement is there to reinforce Amazon’s image as a customer-centric or customer obsessive brand.
Following graph shows the Amazon’s standing as a customer-oriented firm in the US consumer market:
Source: Statista
3.3.2. Passion for invention
Amazon’s passion for invention reflects in its business strategies. Amazon does not restricts its focus on the existing markets, and keeps embracing new ideas to fuel the innovation. Some example are- Amazon Kindle, Amazon Go, and Amazon Luna.
In 2023, Amazon was ranked #3 by Boston Consultancy Group in the list of world’s most innovative companies.
3.3.3. Commitment to operational excellence
The Amazon’s commitment to operational excellence encourages the firm to continuously improve its processes to achieve the desired results.
Here are some latest examples exhibiting the Amazon’s commitment to operational excellence:
- Amazon has invested on the advanced robotics and automation technologies to optimize its warehouse operations.
- The new digital solutions- Digit and Sequoia will delight the customers with increased accuracy and greater speed.
- Currently, Amazon has more than 750,000 robots to perform the repetitive tasks and drive the operational excellence.
3.3.4. Long-term thinking
Amazon’s long-term thinking reflects in its commitment to customer-orientation and innovation, ensuring relevance and sustainable growth in the quickly changing market.
Following graph shows the Amazon’s incredible growth over the long-run:
Source: Statista
Amazon some recent sustainability initiatives include- the climate pledge, Amazon smile, and Right Now climate fund. The company is committed to reach net-zero carbon emissions by 2040. Amazon’s Future Engineer Scholarship offers students with access to the mentorships, internships, scholarships, and online courses. Since 2018, the program has benefitted more than 3.2 million students around the world.
4. Amazon vision statement
The overall purpose of Amazon reflects in its vision statement:
“Our vision is to be earth’s most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online”
Amazon mission and vision statement position Amazon as a pioneering force in the global e-commerce industry with a sharp focus on the customers’ needs and innovation.
Amazon’s purpose of existence also reflects in its core values:
5. Amazon company values
Amazon makes sure that everyone who is part of company reflects core values. These values describe how Amazon does business, and takes decisions to keep customers satisfied. The fulfilment of these core values help Amazon achieve its vision and mission of becoming- the earth’s most customer centric company, safest place to work, and best employer.
Amazons values
| Customer Obsession | Prioritize customer satisfaction and trust over competition. |
| Ownership | Long-term thinking and taking responsibility beyond assigned roles. |
| Invent and Simplify | Encourage innovation, and embrace external ideas. |
| Learn and Be Curious | Foster a culture of continuous learning and curiosity. |
| Set Highest Standards | Set and raise high standards, ensuring highest product quality. |
| Think Big | Communicate a bold vision and think innovatively |
| Frugality | Accomplish more with less, promoting resourcefulness. |
| Earn Trust | Listen attentively and earn trust through respectful interactions. |
| Dive Deep | Stay connected to details. |
| Deliver Results | Focus on key business inputs and rise to the occasion despite setbacks. |
| Best Employer | Create a safe, diverse, and empathetic work environment. |
| Broad Responsibility | Acknowledge impact on the world, and strive for continuous improvement. |
6. Amazon objectives
Rooted in its mission and vision to become earth’s most customer centric company, coupled with its core values of ownership, innovation, responsibility, and frugality align seamlessly to drive the company towards achieving overarching objectives.
6.1. Objective 1
To increase the investment in the digital entertainment, and cloud computing.
This objective derives motivation from growing cloud computing and digital entertainment trends:
Following graph shows the growing trend of digital entertainment from 2020 to 2024:
Source: Marketing Charts.com
Here is another graph showing the rising cloud computing trends:
Source: Techopedia
6.2. Objective 2
To reduce the company’s cost to serve by leveraging the automation and artificial intelligence, optimizing inventory management, and improving the operational efficiency.
This objective derives motivation from growing trends of automation and AI adoption to optimize inventory management, as depicted in following graph:
Source: Supply chain analytics
6.3. Objective 3
To invest on the future growth by introducing more products like- One Medical, Amazon Freevee, and Amazon Business.
The decision to increase investment on Amazon Freevee derives motivation from the growing demand for ad-supported video streaming services:
Source: Persistence market research
6.4. Objective 4
Lastly, considering the rising pressure to meet the stringent environmental standards, Amazon’s objective is to-
Create sustainable future by reducing the packaging waste, driving climate change solutions, and protecting natural resources.
7. Amazon’s future forecast
Financial analysts present an optimistic outlook of the Amazon’s stock price in 2024. As per analysts, the share price of Amazon will rise from $2.06 in 2023 to $2.96 in 2024. Moreover, company will experience an 11.8% revenue growth in 2024- USA Today.
8. Conclusion
To conclude, Amazon’s strategic alignment of vision, mission, values, and objectives highlight the company’s commitment to sustainability, customer-centric innovation, and operational excellence. The optimistic financial forecast and continual dedication to growth enables Amazon to become the pioneering force, poised for continued success in the competitive global market.
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