Amazon.com, Inc. is under pressure to improve its profitability (in 2014 it earn

Question

Amazon.com, Inc. is under pressure to improve its profitability (in 2014 it earned a net loss of $241m on revenues of $89bn). Amazon is a highly diversified company engaged in online retailing in 14 different countries, audio and video streaming, the production and sale of mobile electronic devices, web hosting and other cloud computing services, and numerous other activities. Of the four main corporate management roles discussed in this chapter—managing the corporate portfolio, managing linkages among businesses, managing individual businesses, and managing change and development—which offers the greatest opportunities for Amazon’s corporate headquarters to create value?

Explanation / Answer

In current situation the “managing linkages among businesses” will provide greatest opportunities for creating value. This involves finding the areas of integration and saving cost and increasing productivity for the company.

            This also involves determining how the existing business can create value for the other businesses of the company. For example, the online business can be combined with the music streaming business allowing it to attract more customers to it.     

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