Question

What is Amazon management strategy? why does Amazon so successful with its management?

Answer 1

We can say that Amazon has the best balance between the management function and their cost leadership as well as differentiation. There have been a number of competitors which have directly placed against Amazon in the market but haven't been able to do any substantial damage to either the structure of its market capability and there is a reason for that. Amazon makes use of BIG DATA in order to generate any and all of its decision-making functions. We can say that Amazon makes the best possible use of strategy provided by its source of competitive advantage, in all essence, it allows Amazon to make use of the present technology and factors such as leveraging their efficiency in the structure and function of their implementation in order to create the best possible realization of the economies of scale. This is all made possible through the use of effective management. Amazon has a high level of differentiation, different departments work for different areas effectively creating a structure which is better when separated due to being able to provide a higher degree of functionality rather than specificity. Amazon has managed to use this structure without falling into what we call the silo effect. This is the factor that provides Amazon its advantage in the market in terms of management.