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Amazon’s E-Business Strategies
Oleksandr Pentsko
Business Leadership, Toronto Imperial School
BOH4M & Business Leadership
Mrs. Esahack
27 March, 2025
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Table of Contents
1. Introduction .................................................................................. 3
2. Strategic Initiatives ........................................................................ 3
3. Impact Analysis .............................................................................. 4
4. Conclusion .................................................................................... 4
5. References .................................................................................... 10
6. Appendices (if applicable) ............................................................. 5
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1. Overview Lino, G. (2024, September 30)
Contextual Overview of the Organization
Amazon Inc., established by Jeff Bezos in 1994, has emerged as one of the world's top e-
commerce and technology firms. Amazon has diversified its operations from online retailing
to cloud computing, digital streaming, artificial intelligence, and logistics.
Overview of the Industry
E-commerce has experienced fast development because of the consistent digital
transformation and shifting consumption habits. Through better internet penetration and
mobile technological innovation, companies are adopting electronic business models to help
maintain their competitive advantage. In addition, the arrival of cloud computing and
automation has significantly transformed retail as well as logistics operations.
Objective of the Report
The research explores Amazon's strategic plans, its growth and e-commerce strategies, how
these strategies are implemented, and the effect on its overall performance.
2. Strategic Initiatives Sahil. (2024, November 15)
Description of the Implemented Strategy (Growth and E-Business)
Amazon has relentlessly followed growth and e-business initiatives to increase its market
footprint, expand revenue sources, and improve customer experience.
Specific Actions Undertaken by the Firm
1. Entry into new markets – Amazon initiated region-based website establishment,
established fulfillment centers globally, and expanded its business to emerging economies
such as India and Latin America.
2. Mergers and Acquisitions – Notable acquisitions include Whole Foods (2017), aimed at
entering the grocery retail sector; Zappos (2009), intended to improve fashion retailing;
Twitch (2014), for the purpose of delivering video streaming services; and Ring (2018), to
offer advanced smart home security functionalities.
3. Technological Innovation – Amazon invested in artificial intelligence-powered product
recommendations, automated robots in fulfillment centers, and cloud computing via AWS.
4. E-Business Model – Amazon Marketplace for third-party sellers, Amazon Prime for
customer loyalty, Amazon Fresh and Amazon Go for grocery innovation, and Amazon
Logistics for optimized delivery are the company's e-business models.
Timeline of Implementation
• 1994-2000: Amazon established as an online bookstore and expanded to general e-
commerce.
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• 2006: Amazon Web Services (AWS) launched, changing cloud computing forever.
• 2015: Expansion of Amazon Prime and development of Alexa-enabled smart products.
• 2017: Acquisition of Whole Foods to venture into physical retail.
• 2020-Present: Further investment in AI, automation, and international expansion.
3. Impact Analysis Clark, S. (2023, November 17)
Evaluation of the Strategy's Effectiveness
Amazon's growth and e-business model have been significant factors in its profitability and
market dominance.
Economic Impacts
• Annual revenue surpassed $500 billion, demonstrating consistent growth across all sectors.
• AWS was one of the most profitable segments, contributing significantly to revenue.
Operational Impacts
• Automation and artificial intelligence-based logistics investments improved supply chain
efficiency.
The growth in new markets diversified Amazon's international reach and customer base.
• Mergers and acquisitions improved product and service lines, resulting in diversification.
4. Conclusion Clark, S. (2023, November 17)
Synthesis of Main Results
Amazon's strategic actions have further solidified its dominance in e-commerce and cloud
computing. Growth expansion drives, tech innovations, and mergers and acquisitions have
fueled top-line growth and operating efficiency.
Wholeness Impact of the Strategy
The expansion and e-business strategies have been exceedingly effective, making Amazon a
worldwide leader with viable competitive advantages.
Recommendations for Future Actions
• Increase presence in emerging markets to capture hitherto untapped customer bases.
• Invest in sustainable approaches to increase business social responsibility.
• Seek AI and automation developments to improve operational efficiency.
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Diagrams depicting Amazon’s E-commerce strategies’ current and projected impacts
Marvilano. (2021a, August 31) Amazon is still the US e-commerce king, holding the No. 1
spot in our rank of the top 15 US retail e-commerce companies by sales. To provide some
sense of how much larger Amazon is, Walmart, at No. 2, will sell $73.45 billion in US retail
e-commerce sales this year, while Amazon will sell $431.11 billion.
The consumer electronics and computer segment constitutes the highest percentage of
Amazon's US online sales, at just over one-fifth of total sales. The other leading categories
include apparel and accessories; furniture and home furnishings; books, music, and video;
and health and personal care.
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Marvilano. (2021b,
August 31) Third-
party marketplace
ecommerce sales
will grow faster
than overall US online sales, according to our US Retail Ecommerce Marketplaces Forecast
2023 report. Retail marketplace ecommerce sales will represent over one-third of all retail
ecommerce sales in the US by 2027.
Amazon is the industry leader, with $278.50 billion in third-party sales this year. That will
expand 12.9% in the following year to $314.34 billion, expanding roughly as much as
Walmart (13.0%) and greater than eBay (-1.1%), Etsy (8.1%), and Poshmark (8.1%).
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Feger, A. (2023, June 9) Amazon may be king when it comes to ecommerce, but it still has a
ways to go to catch up with Google and Meta in US digital ad revenues
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Intelligence, I. (2023, April 26) In February, Amazon CEO Andy Jassy was beaming with
pride when he declared that the company had invested decades in creating generative AI
models such as ChatGPT. And in May, leaked documents indicated that the company was
set to revolutionize Alexa with additional ChatGPT-like features, while in the meantime job
postings suggested that Amazon would also bring generative AI to its search feature.
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Retailers from Walmart to Levi’s have begun experimenting with the technology, using it in
both internal and external functions including product recommendations, search,
and generating product descriptions.
If Amazon were able to make it easy to bundle all of these offerings as a single offering for
retailers, it would have even more power over retail competitors.
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References
Clark, S. (2023, November 17). How the “Amazon Effect” Has Impacted Ecommerce.
CMSWire.com. https://www.cmswire.com/ecommerce/how-the-amazon-effect-has-
impacted-ecommerce/
Feger, A. (2024, July 9). Amazon Business Model: Revenues & Trends for retail, ADs, &
technology units. EMARKETER.
https://www.emarketer.com/learningcenter/guides/amazon-revenue/
Lino, G. (2024, September 30). Amazon's Business Model: A Comprehensive Guide. Giro’s
Newsletter. https://www.girolino.com/understanding-the-business-model-of-amazon-
company-a-comprehensive-analysis/#:~:text=The%20Amazon%20business
%20model%20is,sellers%20to%20use%20its%20platform.
Mag, H. (2024, March 6). Council Post: Maximizing Profits on Amazon and other
Marketplaces: Strategies for E-Commerce Success. Forbes.
https://www.forbes.com/councils/forbesbusinesscouncil/2024/03/06/maximizing-
profits-on-amazon-and-other-marketplaces-strategies-for-e-commerce-success/
Marvilano. (2021a, August 31). Amazon’s business strategy. Heavenly Ltd.
https://www.marvilano.com/post/amazon-s-business-strategy
Marvilano. (2021b, August 31). Amazon’s business strategy. Heavenly Ltd.
https://www.marvilano.com/post/amazon-s-business-strategy
Sahil. (2024, November 15). Amazon: A Comprehensive overview of the global E-
Commerce giant. Medium. https://medium.com/@kashifali_95395/amazon-a-
comprehensive-overview-of-the-global-e-commerce-giant-a6171a5c7be1
Feger, A. (2023, June 9). How ecommerce powers Amazon’s success in 5 charts.
EMARKETER. https://www.emarketer.com/content/how-ecommerce-powers-amazon-s-
success-5-charts
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Intelligence, I. (2023, April 26). ChatGPT and retail: reality, hype, what’s next, and how to
prepare. Business Insider. https://www.businessinsider.com/chatgpt-and-retail-whats-next-
and-how-to-prepare-2023-4
