Covid 19 Pandemic Amazon Performance Term Paper

CASE STUDY 6Case Study 2OverviewThe company selected for this exercise is Amazon. Amazon could, in basic terms, be described as an internet-based company that offers for sale a wide range of products and items to buyers from across the world. Some of the products the company offers for sale are inclusive of, but they are not limited to; consumer electronics, automotive products, sporting tools, watches and jewelry, personal-care items, groceries, beauty products, books and stationery, etc. The company also provides web services. The company, which operates in the online retail industry, was established in the year 1994 and has over time grown to become one of the largest companies in the world in terms of market capitalization and revenues. The present CEO of the enterprise is Andy Jassy (Amazon Annual Report, 2021). Jeff Bezos, who also happens to be the companys founder, presently serves as the executive chairman of the company. The company is headquartered in Seattle. Amazon has a number of competitors in the online retail industry space. These are inclusive of e-bay, Alibaba, and Walmart.Market Capitalization and Stock Price ComparisonTable 1 below captures the market capitalization data for Amazon over a specified time period.DateMarket Capitalization2/3/2020$1,035.48B6/3/2020$1,239.20B11/3/2021$1,712.30BTable 1Table 2 below captures the stock price data for Amazon over a specified time period.DateStock Price2/3/2020$100.21006/3/2020$123.920011/3/2021$169.2000Table 2The COVID-19 pandemic was first designated a global health concern by the World Health Organization on 30th January 2020 (Das, 2022). From this point onwards, most countries deployed various strategies to limit the spread of the disease. These strategies were inclusive of, but they were not limited to; implementation of travel bans, institution of lockdowns, etc. (Das, 2022). Businesses from across the world were affected in diverse ways. However, it should be noted that businesses were not affected in a similar manner by COVID-19 disruptions. Amazon was able to handle the negative impacts of the pandemic relatively well. As a matter of fact, as demonstrated in table 2 above, the companys market capitalization grew significantly during the said period. Market capitalization, as Berk, DeMarzo and Harford (2021) observe, is indicative of the total market value of a firms equity (748). The companys stock price increased from $100.21 at the onset of the pandemic to $169.2000 in early November 2021. This could be attributed to the fact that Amazon essentially became the go-to place for persons from across the world over the two years under consideration as governments sought to limit the spread of the virus by implementing lockdowns and curtailing public gatherings. These measures meant that persons could no longer visit brick-and-mortal establishments for routine shopping.SWOT AnalysisAmazon has a number of strengths and weaknesses that could have an impact on its ability to accomplish its business objectives. The company also faces a number of threats and could pursue a number of opportunities in its…

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…customer interests during this difficult period by partnering with 3M to rein in price gouging (Amazon Staff, 2022).I am of the opinion that the approaches deployed by Amazon were effective. The extension of assistance to customers, the community as well as employees could be seen as the continued fulfillment of the companys responsibility and accountability to key stakeholders. This also benefited the company on the reputational front. The work from home policies adopted by the company secured the wellbeing of the companys employees and key partners ensuring operational continuity during and after the pandemic. By partnering with 3M to prevent price gouging, Amazon further enhanced its capabilities in as far as the advancement of customer interests and enhancement of customer experience are concerned.RecommendationsI would recommend that Amazon puts in place measures to enable all non-essential employees (i.e. some of those who work in its warehouses and headquarters) to work from home. The COVID-19 pandemic demonstrated that a remote work policy is indeed workable and could be beneficial in not only pandemic scenarios, but also instrumental in efforts to rein in costs. The company should also continue embracing innovation on certain fronts, i.e. in relation to service delivery. The relevance of the further implementation of cost-cutting measures cannot also be overstated in efforts to advance a cost-leadership agenda. This could help the company stay afloat during periods of downturn in economic activity as has been…