Despite the outstanding success in all involved business areas, including online book trading, media, retailing, and IT service, Amazon has several severe flaws hampering its development. The main problems are declining cyber and consumer safety and fake reviews since Amazon continuously faces difficulties in vetting an increasing number of offerings. Thus, the company should design and innovate highly responsive cybersecurity and fake detecting systems to maintain consumers’ loyalty. Concerning corporate strategy, Amazon should focus on new product development, especially in promising IT services and media.
Considering the ongoing COVID-19 pandemic, Amazon continues experiencing substantial product and service delivery issues because of escalating demand. Moreover, the company’s employees begin to encounter workplace safety problems and difficulties to ensure strict adherence to company values. In such challenging circumstances, the management should develop cross-functional teams with definite and clear expertise and objectives without overlapping. This requires delegating responsibility, enhanced communication between groups, incentivizing and training employees, and cutting unnecessary tasks.
Amazon’s most significant risks include surging cybercrime, possible lawsuits and legal controversies, and fierce competition from leading retail brands such as Walmart and eBay. Furthermore, the company has problems with employees’ satisfaction and commitment due to unsafe and demanding working conditions, which worsens its reputation. These issues also expand the roster of enemies and leaving investors who mainly require complying with governmental regulations. Hence, Amazon should shift its focus from the market culture to an adhocracy culture characterized by a dynamic environment where employees are actively engaged in decision making. Moreover, this adhocracy promotes the development of agility and leadership skills, which ultimately results in improved innovation and competitiveness.
