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- The strategy is a plan that management make, mostly long-term for the company to achieve set goals or objectives. Strategy determines the resources such as skills, finance, technical competence, among others needed to meet the desired objectives. These objectives could be on how to sustain the company’s competitive advantage in the market, meeting customer’s expectations or increasing revenues among others. There are three main strategies, which are a corporate strategy, business unit strategy, and team strategy.
- Porter’s five forces is an analysis tool that business analysts use to determine the environment of a company, both internal and external, for productivity. There are five forces; one analysis the competitors, the second determines the power of suppliers to increase their prices, third discusses what drives buyers to purchase, and the last two analyze threats of new entry or buyers substituting products or services. These forces aid companies’ structure to become competitive in various ways. The forces determine the company’s weakness, strengths, and also their corporate strategy. Managers analyze these forces and use the information to adjust the company’s business strategy to use better its resources, which increases competitive advantage.
- Amazon is conquering the online shopping. It has introduced Amazon Prim, where its customers have a better and faster shopping online experience compared with retail shopping. The Prime Now membership offers the customers with an opportunity to get their orders delivered within one to two hours in selected cities. Notably, the company has connected Amazon prime program with Whole Foods. It is transition online shopping by creating a connection between digital shoppers and the physical and digital world. Grocery shopping is now available online; this strategy will increase online shopping. Since Amazon launching Prime Day in 2015, the sales have increased, and the company each year have record-breaking revenues. It’s sales reached over 200 million in 2018. Markedly, using Prime, Amazon customers get to gain access to streaming services, for example, Amazon Music and Amazon Video at $99 per year and unlimited delivery at no extra cost. Amazon has drones that offer deliveries to subscribers within some few minutes or hours.