Organizations often use annual or quarterly strategic planning processes. While it’s not necessary to modify the strategy drastically each year, the environment is likely to change. For example, your pillars of strategy might change slightly but the destination remains the same. Consequently, you should be able to adjust the strategy as the situation warrants. Here are some things to consider. Read on to find out what makes an organization successful. You can learn from Reckitt Benckiser’s strategy for your own business.
Lessons from Amazon’s strategy
As a marketer, you should be able to identify opportunities in your industry where you can leverage your expertise and reach new customers. Amazon has broken several rules of strategy that other companies can use to their advantage. By focusing on software and services, the company has developed a strong foundation in technology and has leveraged Google’s strengths. It also builds deep relationships with automobile manufacturers. In this article, I will share some of these lessons from Amazon’s strategy.
The company has a rich history of failures. In 2009, they wiped out unauthorised Kindle books, which cost the company millions of dollars. While this did hurt their reputation, Amazon soon remedied the issue, and the incident was credited with accelerating their growth. While it is true that few brands would like to compete with Amazon at the moment, there are lessons that every ecommerce company can learn from the giant.
When determining a company’s strategy, one should analyze the company’s product lines, marketing plan, and service offerings. The 5S model of strategy identifies five primary areas of focus, reflecting a company’s objective to increase market share and sales. In the short term, Walmart’s aim is to lower prices for Great Value products by at least five percent and maintain its profit margins. It is important to determine how the changes in these areas will affect the company’s long-term goals.
The company’s massive retail operations require a massive distribution system. As of 2021, Walmart had 404 distribution facilities. Of these, 183 were in the United States and two21 were in international markets. They serve an average of 28 stores, generating US$1.2 billion per location. In addition, Walmart uses technology to optimize its supply chain. For example, by reducing the number of empty miles, Walmart can reduce costs by up to 20 percent. And while technology is essential, it is not sufficient for reducing distribution costs to 1% of cost of sales.
The US sales division of Reckitt was struggling with stagnant sales as a result of a number of factors, including access to additional healthcare markets and a focus on lower-value targets. Reckitt sought assistance from Axiom Consulting Partners after receiving a recommendation from a trusted business partner. The consulting firm focused on the sales organization and methodology, as well as long-term goals. It then developed a comprehensive plan based on data science.
The change in Reckitt’s strategy has been accompanied by a change in the company’s brand identity, corporate purpose and corporate philanthropy strategy. A new chief executive, Laxman Narasimhan, was appointed to lead the company’s transformation. Reckitt’s leadership style was a mix of old and new, and Laxman Narasimhan is a millennial.
The company’s strategy consists of investing in technologies and increasing its customer base. This will increase its profits and make it stronger. Bezos’s napkin sketch emphasizes the importance of customer satisfaction, and he wants to provide it. To that end, he is developing ways to meet customers’ needs and desires. This strategy can work wonders for sellers, too. But the question remains: how can one replicate Amazon’s success?
Until recently, physical stores were the antithesis of Amazon. Now, however, they’re a viable last-mile channel for goods. Amazon also sells apparel, home goods, and other private labels. While a long time ago physical stores were the antithesis of Amazon, their rapid growth and diversification have allowed them to grow into umbrella brands. Amazon has several strategies for marketing. Some are traditional, while others encompass digital marketing and other advertising formats.