Fictitious Amazon Strategic Plan

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Statement of Strategic Direction

Amazon continues to grow and excel as the world’s most valuable brand (Feiner, 2019). Our commitment to customer service and customer experience are the driving factors that have led to the success of the Amazon brand. Our focus has always been on convenience while providing the lowest prices anywhere. Our driving force has always been to think of the customer first (Amazon Mission Statement, n.d.). And by thinking of the customer first, we are now looking to focus on personal experience.

Amazon has already shown that we are serious about providing superior customer experiences to our patrons at Whole Foods. We want to do the same with our technology products so our devices can continue to help our customers enjoy a better life. It is with great excitement that I announce our intention to purchase Best Buy Inc.

In the months to come, Best Buy will be the go-to-place for so many of our customers. And Geek Squad will provide superior, first-party technical support for all Amazon devices – ranging from our TV products, to our Alexa line of devices, and everything in between that is manufactured by Amazon. In addition, we will have pick-up options on the Amazon website. If a product is for sale on Amazon and available at your desired store, you will be able to purchase your items online and pick them up directly at Best Buy.

We are dedicated to the future growth of Amazon, and our mission is to focus on the customer experience first. To that end, once the acquisition of Best Buy is completed, Amazon will meet or exceed the following goals:

• Grow Best Buy’s income 15% each year for the next 3 years
• Add 500 more Best Buy locations in the US
• Continue to leverage Best Buy’s “store within a store” business model
• Open 200 supercenters, that combine Best Buy and Whole Foods for a one-stop-shop solution

We are so thrilled at the opportunity to provide our patrons customer service with a vertical integration that few companies afford their customers. Amazon patrons can come to expect not only the best technological devices in the world, but also the best in-person service and support for those devices as well.

William Kenyon
Fictitious CEO of Amazon

Prose Layout

I. Determine Competitive Logic

a. Market position for Amazon is very strong as Amazon and Best Buy are both very established organizations. Entering the market for Amazon will allow for Amazon to provide superior customer experience and vertical integrated customer support for Amazon devices.

• Bolster Best Buy by expanding throughout the United States
• Build and test a super-center – a Whole Foods and Best Buy superstore to determine feasibility of a one-stop-shop
• Continue to utilize Best Buy’s “Store in a Store” model and look for additional partnerships beyond Google, Microsoft, and Amazon that Best Buy currently leverages

II. Set Key Goals

a. Grow Best Buy income by 3% per quarter, 15% per year for the next 3 years.

• Build and test a super-center – a Whole Foods and Best Buy superstore to determine feasibility of a one-stop-shop
• This will be a 1-year pilot
• We predict this will be a massive success. If data confirms success, open 200 total super centers in the next 3 years
• 100 super centers opened in year 2, and another 100 opened in year 3
• Open an additional 500 Best Buy locations in the United States over the next 3 years
• Open 120 stores in year 1
• Open 170 stores in year 2
• Open 210 stores in year 3

b. Create a rallying goal

• Provide the best customer experience for our customers on earth
• Vertical integration for both physical Amazon devices and the Amazon website will be used to provide an industry-leading customer experience

III. Align Organization

a. Grow the website to integrate the Amazon shopping cart with the Best Buy shopping cart online.

• Include all Best Buy purchasing options on the Amazon website
• Train call center employees to support Best Buy website issues
• Develop Best Buy website and Amazon website to have Geek Squad appointment service scheduling capabilities

b. Hire key personnel to ensure smooth operations.

• Train HR employees to understand employment needs and laws for employees at Best Buy
• We can leverage our knowledge of HR in this category based on Whole Foods employment
• CEO of Best Buy will remain employed as the leader of Best Buy and oversee Best Buy growth. New title: President, Best Buy

c. Create Shared Values

• Price match with competitors
• Our employees are the life of our business and they are a team. Unified teamwork
• Aggressive marketing
• No one is commission based, but salaried. Competitive wages

IV. Launch Action Plan

Initiative 1: Complete acquisition of Best Buy

Initiative 2: Train and welcome all Best Buy employees to the Amazon family. Provide a list of welcome gifts each employee can choose from:

• 55-inch Fire TV
• Amazon Alexa Smart Hub
• HD Kindle Fire

Initiative 3: Relocate Best Buy CEO and Best Buy c-suite to Amazon headquarters in Seattle, all expenses paid and a relocation bonus of $5000 per employee. It is important to retain the culture of Best Buy as the current Best Buy leadership has transformed Best Buy from a failing organization to a thriving one (Mourdoukoutas, 2019).

• Integrate Best Buy c-suite individuals to the Amazon team as VP’s of the Best Buy Division, reporting directly to the President of Best Buy

Initiative 4: Consult with Best Buy team and determine the best spots for the first 120 stores

• Immediately hire contracted teams to begin construction
• Hire project managers to hire and train new employees for the upcoming locations – from store general manager, to shelf-stocker
• Once the first 120 locations are determined and construction under way, determine locations/construction dates for the next 380 stores

Initiative 5: Train Geek Squad employees to provide tech support for all Amazon devices

• Hire tiered support agents for more technical support issues that require repair services such as circuit board repair or screen replacements

Initiative 6: Choose a location for a Best Buy-Whole Foods Super Center

• Meet with leadership from both the Best Buy and Whole Foods divisions to determine best operating practices and site selection
• Select a talent manager to identify key talent across the Whole Foods and Best Buy organizations
• Offer key talent job positions at the Super Center
• $5000 relocation bonus and moving costs covered by Amazon
• Offer 15% raises to key talent that relocate
• After year 1, determine if a Super Center is feasible based on the data gathered.
• We predict massive success. Determine the locations of the 200 stores and begin construction
• Key Talent will be identified just like with the first supercenter
• $5000 relocation bonuses for key talent to operate the new centers
• 15% raises to key talent that relocate

4D Analysis (click image to view full size)

Porters Five Forces Analysis (click image to view full size)

References

Amazon. (n.d.). Mission Statement. Retrieved from https://www.amazon.jobs/en/working/working-amazon

Best Buy. (n.d.). 2018 Annual Report. Retrieved from http://s2.q4cdn.com/785564492/files/doc_financials/2018/annual/Annual-Report.pdf

Feiner, L. (2019). Amazon is the most valuable public company in the world after passing Microsoft. Retrieved from https://www.cnbc.com/2019/01/07/amazon-passes-microsoft-market-value-becomes-largest.html

Mourdoukoutas, P. (2019). Best Buy Is Still In Business -- And Thriving. Retrieved from https://www.forbes.com/sites/panosmourdoukoutas/2019/03/02/best-buy-is-still-in-business-and-thriving/#267e19906774

Target. (n.d.). 2018 Annual Report. Retrieved from https://corporate.target.com/_media/TargetCorp/annualreports/2018/pdfs/2018-Target-Annual-Report.pdf

Wal-Mart. (n.d.). 2018 Annual Report. Retrieved from https://s2.q4cdn.com/056532643/files/doc_financials/2018/annual/WMT-2018_Annual-Report.pdf