Group F3_CLC - Marketing Expenses, Perceptual Map, and Organizational Chart Analysis

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CLC - Marketing Expenses, Perceptual Map, and Organizational Chart Analysis Reyna Barns, Kaiana Lewis, Raul Osete, Martha Sandoval Colangelo College of Business - Grand Canyon University MGT-660: Strategic Management February 7, 2024

Comparative Data Table and Analysis Amazon’s consistent rise in marketing expenditures, as depicted in the comparative data table, suggests a strategic approach aimed at sustaining or expanding its market dominance. The substantial increase from $22,008 million in 2020 to $42,238 million in 2022 signals a commitment to aggressive advertising, promotional campaigns, or potential entry into new markets. This upward trajectory aligns with Amazon’s pursuit of maintaining a competitive edge and solidifying its position as a global e-commerce and technology giant (Bezos, 2020). To discern the implications, Amazon should scrutinize the return on investment (ROI) associated with these escalating expenditures. Assessing the impact of marketing initiatives on customer acquisition, retention, and overall revenue growth is crucial for ensuring that the

increased spending translates into tangible business outcomes. Striking the right balance between investment and returns will be pivotal in optimizing marketing st rategies (Bezos, 2020). Furthermore, a comparative analysis with key competitors such as Target and Walmart provide contextual insights. While Amazon’s spending has surged, Target’s relatively steady increase and Walmart’s fluctuating figures, including a notable decrease in 2020, underscore diverse approaches in the retail landscape. Amazon can leverage this information to fine-tune its marketing strategies, drawing inspiration from successful practices or identifying potential areas for improvement. In summary, Amazon’s escalating marketing expenditures reflect a proactive stance, necessitating a meticulous evaluation of ROI and a nuanced understanding of competitors’ strategies to ensure sustained growth and competitive advantage in the dynamic market. Perceptual Map and Analysis

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In Steps 4 and 5 of Chapter 7, the focus is on evaluating your brand’s position in the market matrix and assessing its perceived value relative to competitors. Step 4 involves determining if your brand’s location is ideal and offers unique value to consumers. Meanwhile, step 5 emphasizes the need for repositioning your brand if required, aiming to shift consumer perception and gain a competitive advantage over rival brands (David et al., 2020). Perceptual mapping influences Amazon’s marketing strategy by pinpointing market gaps, evaluating competitive positioning, and understanding consumer preferences. This tool guides Amazon in emphasizing unique features, identifying target audiences, and recognizing opportunities for brand repositioning. By leveraging perceptual mapping insights, Amazon strategically aligns its marketing messages, ensuring it stays competitive and responsive to evolving consumer perceptions in the dynamic market landscape (David et al., 2020).

The Existing Amazon's Top Executives and Organizational Chart

Proposed Organizational Chart Overview of specific changes, associated costs, and recommendations The proposed restructure introduces a divisional format with seven distinct segments. Notable changes include the creation of the position “CEO of Amazon Devices and Services,” occupied by Tobias Stube. Each division, such as Amazon Web Services and Digital Content and Entertainment, now has its CEO. The top executive chart remains anchored by Executive Chair Jefferey P. Bezos and CEO Andy Jassy, with key executives distributed across the new divisions, reflecting a more specialized and focused leadership approach. Notably, the introduction of Tobias Stube as CEO of Amazon Devices and Services represents a pivotal addition to the top leadership team.

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The proposed organizational hierarchy shift signifies a departure from a consolidated structure to a more segmented framework, introducing seven distinct divisions. The associated costs of this transformation include an estimated $3 million for communication and training programs to facilitate a smooth adaptation to the revised structure. Additionally, potential adjustments to executive compensation might incur an estimated $5 million, while technological infrastructure upgrades could involve an initial investment of approximately $2 million. The impact of this change is anticipated to enhance operational efficiency, align leadership more closely with specific business segments, and potentially boost strategic decision-making within each division. To navigate this transition effectively, it is recommended to implement a robust communication plan, emphasizing the benefits and goals of the new structure. A comprehensive change management strategy should guide employees through the transition, ensuring support and addressing concerns structure (Sartori et al., 2018). Continuous evaluation of the impact on operational efficiency, employee satisfaction, and strategic alignment is crucial, allowing for adjustments as needed. Investment in leadership development programs is advised, with an estimated cost of $1.5 million, to equip executives in each division for effective leadership. By involving employees in the process and seeking their input, Amazon can strategically navigate the proposed changes, minimizing disruption and maximizing the potential benefits of the revised hierarchy stru cture (Sartori et al., 2018).

References Amazon’s 10-K Report (n.d.) Retrieved from https://s2.q4cdn.com/299287126/files/doc_financials/2023/ar/Amazon-2022-Annual- Report.pdf David, F. R., David, F. R., & David, M. E. (2020). Strategic management concepts and cases: A competitive advantage approach (17th ed.). New York, NY: Pearson Education. Bezos, J. (2020, December 21). How Amazon thinks about competition . Harvard Business Review. https://hbr.org/2020/12/how-amazon-thinks-about-competition Sartori, R., Costantini, A., Ceschi, A., & Tommasi, F. (2018). How Do You Manage Change in Organizations? Training, Development, Innovation, and Their Relationships. Frontiers in Psychology , 9 (313). NCBI. https://doi.org/10.3389/fpsyg.2018.00313 Strategy Club. Retrieved from https://www.strategyclub.com/ Target’s 10-K Report (n.d.) Retrieved from https://corporate.target.com/getmedia/0817b557-7676-440b-a85d-3f48954ff919/2022- Target-Annual-Report.pdf The Org. Retrieved from https://theorg.com/org/amazon Walmart Corporate 2020 Annual Report (n.d.) https://corporate.walmart.com/content/dam/corporate/documents/press-center/walmart- reeases-2020-annual-report-and-proxy-statement/2020-walmart-annual-report.pdf