The Amazon Company’s Strategic Alternatives


Every organization that thinks about successful long-term development should consider how to achieve it. For this purpose, a company strategy is developed, containing the main points on achieving the goals. Strategic alternatives are a set of options for the organization’s development to accomplish several aims in all their diversity (Bang et al., 2016). Each strategic alternative provides the company with various opportunities and is characterized by different costs and results, ultimately determining the need for strategic choices. Amazon was taken as an example to explore this topic in more detail: the strategic alternatives were examined, the recommended one was identified, and the methods for its implementation were indicated.

Strategic Alternatives and Recommended Strategy

Strategic Alternatives

There are various strategic alternatives for the business and growth of the company. There are four main ones: market penetration, market development, product development, diversification (Loredana, 2017). Using a market penetration strategy, a company continues to work with existing products in existing markets. The essence of the process is to expand the presence and sales of the company’s existing goods in the market as quickly as possible. Amazon is already one of the leaders in electronic commerce in the world. Accordingly, this strategy would not be relevant to the organization at this time. The market development strategy is a comprehensive growth policy and invites the company to explore new markets for existing products or services. The company is constantly expanding its horizons: one of Amazon’s greatest strengths is its ability to market its goods on other platforms.

The product development strategy involves selling new products in existing markets to existing consumers. Amazon offers hundreds of thousands of items, from books to music CDs, electronics, and sporting goods (, Inc., 2021). The strategy of diversified growth involves the development of new products for new markets. Amazon’s attention is focused on customer demands, not on building a confrontation with competitors. Thus, they do not exclude the possibility of risk but instead, support innovation.

Recommended Strategy

Therefore, the organization faces four main strategic alternatives. Although there are many options for each, management needs to choose the overall strategy that will be most effective. However, in today’s changing business environment, it is essential to combine different business development policies, as the strength of one method can reinforce the weakness of another. Accordingly, since Amazon is a multi-structured and multi-functional company, an important point would be to consider a combined strategy: it should include the main aspects of each alternative.


When implementing a combined company management strategy, it is crucial to understand that all its elements should not only be competently and promptly used but also adapted. Efficiency can be achieved if truthful and accurate information is collected, the necessary data is extracted, and reliable processing is carried out. With a data-driven listening approach, a company can understand what customers want and automatically lead the business to create and innovate according to client needs. Based on the available information sets, certain choices of strategic decisions can be formed.


The organization’s top management regularly faces situations where one needs to make different decisions. The process of their resolution will be greatly facilitated if there is a carefully developed and prepared strategy. At the same time, constant experimentation with the risk of general disapproval led Amazon to what it is today. The company has used its diversification strategy wisely while applying the tools of the others on time. Amazon’s growth to today’s scale vividly illustrates how the right combination of methods can lead to colossal success.

References, Inc. (2021). Amazon. Web.

Bang, V. V., Joshi, S. L., & Singh, M. C. (2016). Marketing strategy in emerging markets: A conceptual framework. Journal of Strategic Marketing, 24(2), 104-117. Web.

Loredana, E. M. (2017). The use of Ansoff matrix in the field of business. Annals-Economy Series, 2, 141-149. Web.

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