Amazon.com Inc.’s mission and vision statements influence the multinational technology and e-commerce business toward long-term growth and success. This success is attributed to stringent measures to ensure that the vision and mission statements are fulfilled. In theory, the corporate vision statement provides organizational direction toward a desired future condition of the business, while the corporate mission statement presents business goals and guides strategic management in the company. Based on this business analysis case, Amazon’s mission statement focuses on customer satisfaction. For example, the company emphasizes target customers’ satisfaction in accessing a wide array of products in the e-commerce market. The width of the product mix available from the company is a business strength identified in the SWOT analysis of Amazon.com Inc. In relation, the company’s vision statement shows a target future of global leadership in human resource management and workplace safety in the online retail industry and beyond.
Amazon.com’s corporate mission and vision statements are fundamental to developing strategies to support the company’s competitive advantages against firms like Google, eBay, Apple, Walmart, and Costco Wholesale. These competitors create the strong force of competitive rivalry evaluated in the Porter’s Five Forces analysis of Amazon.com Inc. The company’s corporate vision and mission statements also influence the operations of its subsidiaries, such as Whole Foods Market. Considering the variety of its products, which include online retail services, digital content distribution, cloud computing services, and computer software and hardware, Amazon.com Inc. aligns its vision statement with its mission statement to unify its diverse operations in various industries.
Amazon.com’s Corporate Mission Statement
Amazon’s corporate mission is “to be Earth’s most customer-centric company.” This mission statement promises attractive e-commerce services to satisfy target customers’ needs. The company’s focus on customers implies a set of variables based on what customers require and expect from the technology and online service business. The following characteristics are some of the most prominent factors associated with Amazon’s corporate mission statement:
- Lowest prices
- Best selection of goods and services
- Convenience in e-commerce
- Global industry leadership
The “lowest prices” variable based on the mission statement guides the pricing strategies included in Amazon.com Inc.’s marketing mix or 4P. Low prices are a selling point that makes the company’s e-commerce website and services attractive. A corresponding strategic objective is to reduce operational costs to enable the business to minimize prices. Amazon’s corporate mission statement also points to having the best product mix and selection to satisfy customers. For example, the wide selection of products on the company’s website and mobile app is a factor that attracts shoppers. Moreover, Amazon.com Inc.’s corporate mission emphasizes convenience, such as in accessing the company’s products via the Internet. This characteristic is a response to consumers’ use of “convenience” as a criterion when evaluating the quality and attractiveness of online retail services. The inclusion of “Earth” means that Amazon’s corporate mission statement pushes the multinational business to become a leader in customer satisfaction relative to all firms in the global market.
Amazon.com’s Corporate Vision Statement
Amazon’s corporate vision is “to become Earth’s Best Employer and Earth’s Safest Place to Work.” This vision statement underscores the aim of becoming the best e-commerce company in the world, with emphasis on human resources and workplace safety. The following characteristics are identified in Amazon’s corporate vision statement:
- Global reach
- Best employer
- Safest workplace
The “global reach” component of Amazon.com Inc.’s vision statement is all about international leadership in the market. For example, in stating the “Earth” as the market, the company shows that it aims to continue expanding globally. A corresponding strategic objective is international expansion through market penetration and market development, which are included in Amazon.com Inc.’s generic strategy and intensive growth strategies. The employee-centeredness in Amazon’s corporate vision statement shows that the company considers employees as among the most important stakeholders in the online retail business. This consideration agrees with Amazon.com Inc.’s corporate social responsibility strategy for its stakeholders. In relation, the corporate vision’s emphasis on workplace safety indicates continuing efforts to address the e-commerce firm’s workers’ needs. These efforts contribute to business growth and to making Amazon’s services more attractive to workers and, in turn, more attractive to target consumers based on corporate or brand image.
Evaluation of Amazon’s Corporate Vision and Corporate Mission
Amazon.com’s mission statement satisfies only a few of the conventional characteristics of ideal mission statements. For example, the company includes target customers and market (customers in the global market), and basic business aims (industry leadership and customer satisfaction) in the corporate mission. However, the company does not include technology and the nature of the business and its operations. In this regard, it is recommended that Amazon add details in its corporate mission to give employees and investors a better idea of what the company is all about. This recommendation should make the corporate mission statement more comprehensive, especially in representing the company’s businesses, such as online retail services, cloud-based computing services, digital content delivery, software and hardware, and brick-and-mortar retail (Amazon Go and Amazon Style).
Similar to the corporate mission, Amazon.com’s vision statement satisfies only a few of the ideal characteristics of vision statements. The e-commerce firm’s corporate vision is one-sided, in that it focuses on workers only, without details about the long-term strategic targets of the business with regard to customers, products, industry, and market. Amazon’s corporate vision statement needs a holistic description of the target future condition of the e-commerce and technology corporation. An appropriate recommendation is to improve the corporate vision by including how the company’s product mix (e-commerce service, cloud computing service, consumer electronics and other merchandise, etc.) relates to being the best employer and being the safest place to work. Additional details about long-term industry positioning could also make Amazon’s vision statement more relevant to the business and its investors. Such improvements to the corporate vision could strengthen it in clearly guiding the technology firm’s long-term strategic planning.
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