McKinsey 7S Framework of Amazon 

Amazon is a technology multinational conglomerate brand operating in e-commerce, online advertising, cloud computing, digital streaming, and AI. Jeff Bezos started the e-commerce platform in 1994; and expanded its business portfolio over time. Today, we’ll discuss the McKinsey 7S framework of Amazon as McKinsey 7S model with examples; strategy, structure, system, staff, skills, styles, and shared values as the 7S framework in strategic management.

Technology brand Amazon’s main products and services are as follows;

  • Kindle
  • OS, Tablet, Fire TV
  • Echo
  • Ring
  • Twitch
  • Amazon Robotics
  • AWS
  • MGM
  • Amazon.com

Subsidiaries of Amazon are as follows;

  • Woot
  • Whole Food Market
  • Twitch Interactive
  • Graphics
  • Goodreads
  • Eero LLC
  • Souq.com
  • Phillpack
  • Zoox
  • Zappos
  • Kuiper Systems
  • IMDb

Statistical facts and figures of tech company Amazon are as follows;

  • Amazon’s annual revenue in 2023 was 538.046 billion USD
  • Out of which, the net income of the tech company was 13.072 billion USD
  • Amazon employed Approximately 1684,853 employees to manage its operations
  • The net worth of Amazon was 462.68 billion USD

Top rival companies and competitors of Amazon are as follows;

  • Apple iTunes
  • Tesco
  • Flipkart
  • eBay
  • Alibaba
  • Costco
  • Google Play Store
  • Walmart
  • Otto
  • JD
  • Target

The McKinsey 7S framework of Amazon would analyze strategy, structure, system, staff, skills, styles, and share values as McKinsey 7S Example Company. Here’s Amazon McKinsey 7S framework in strategic management and change management as follows;

McKinsey 7S Framework of Amazon 

Let’s discuss the McKinsey 7S framework of Amazon as McKinsey 7S Example Company or McKinsey 7S model with example; they’re as follows;

Strategy of Amazon

Some of the main elements of Amazon’s organizational strategic approach is one of the key elements of the 7S framework in strategic management in the McKinsey 7S model with example as follows;

I-Cost Leadership

Amazon follows the cost leadership strategic approach. The three key pillars and elements of Amazon’s business strategy are; fast delivery, worldwide reach, and competitive pricing. Some of the key elements that have allowed the e-commerce platform to achieve success in its business strategy are as follows;

  • Regular business diversification
  • Innovative business processes
  • Economies of scale

II-Ecosystem

The business strategy of Amazon focuses on promoting communication among various units as a part of its ecosystem. The leadership values and customer trends play a key role in the development of the company’s strategy. However, some of the key elements of Amazon’s ecosystem are as follows;

  • Featured writers
  • Journalists
  • Analysts
  • Information market of commentators
  • Application developers
  • Publishers
  • Reviewers
  • Writers
  • Merchants

Structure of Amazon

Some of the main elements of Amazon organizational structure as one of the key elements of the 7S framework in change and strategic management in the McKinsey 7S model with example as follows;

I-Organizational Hierarchy

Amazon follows a hierarchical organizational structure. Since the company is very large in size comprising 1.3 million employees, it is highly difficult for the company to follow a divisional or matrix structure as an alternative. However, some of the main features of the company’s corporate structure are as follows;

  • Little turnover rate in senior management positions
  • Stability of the top management
  • Flexible business structure

II-Hybrid Project Group

When it comes to the development of the new product, Amazon depends on the hybrid project group as the main characteristic of the company’s structure. A hybrid project group allows the company to effectively employ competency sharing and knowledge sharing.

System of Amazon

Some of the main elements of Amazon’s organizational systems as some of the key elements of the 7S framework in strategic management and change management in the McKinsey 7S model with example as follows;

I-Multiple Systems

Amazon employs various types of systems in its business environment. The tech brand critically analyzes its various systems regularly with the objective of improving efficiency and gaining a competitive advantage. However, some of the main systems of the company are as follows;

  • Knowledge management systems
  • Business intelligent system
  • Customer relationship management system
  • Transaction processing system
  • Team development and orientation system
  • Employee recruitment and selection system

II-Product Selection

The production of the product selection system falls under the category of private label system and it helps Amazon to achieve its majestic size status. The platform employs a mass volume of customer data and AI to recognize best-selling products; the tech company initiates best-selling products in a very limited time.

Staff of Amazon

Amazon employs people from different backgrounds, ethnicities, and genders and comprises over 1.5 million employees across the globe. The company strongly believes in creating a diverse workforce environment by employing women, disabled, and underrepresented people in the community. However, the diverse workforce helps the company to establish a team that could represent the company better in the global market.

Skills of Amazon

I-Training Programs

Amazon launches various types of training and learning programs for the skill development of its employees. The company conducts training programs for different types of employees at different levels; fresh, experienced, top management, and lower. However, the objective of the training is to improve their skills and expertise, so that they can perform their job better.

Styles of Amazon

The style of Amazon is to develop an innovative and creative workplace culture with changing ideas focusing on developing a safer working environment. Customers are at the core of the company’s business and the company has built a smart and passionate working environment focusing on promoting innovation on their behalf.

Shared Values of Amazon

The vision of Amazon is to become the world’s most customer-focused organization by creating a place; where customers can find everything whatever they want to purchase online. Some of the main shared values of Amazon are as follows;

  • Delivering results
  • Earning trusts
  • Bias for action
  • Thinking big
  • Highest standards
  • Hiring the best
  • Learning and being curious
  • Simplifying and inventing
  • Ownership
  • Customer focused

Conclusion: Amazon McKinsey 7S Framework in Strategic Management |McKinsey 7S Example Company 

After an in-depth study of the McKinsey 7S framework of Amazon; we have realized that Amazon is the world’s leading e-commerce platform. If you are learning about Amazon McKinsey 7S framework in strategic and change management; then you should keep in mind the abovementioned elements; strategy, structure, system, staff, skills, styles, and shared values of McKinsey 7S example company.

References 

  1. https://www.aboutamazon.com/news/workplace/our-workforce-data
  2. https://www.amazon.jobs/en/teams/employee_services
  3. https://www.statista.com/statistics/234488/number-of-amazon-employees/
  4. https://www.aboutamazon.eu/our-workplace/our-employees
  5. https://www.amazon.com/
  6. https://www.linkedin.com/company/amazon/life
  7. https://hiring.amazon.com/why-amazon/culture#/
  8. https://www.aboutamazon.com/workplace
  9. https://www.aboutamazon.com/amazons-workplace-culture
  10. https://www.comparably.com/companies/amazon/mission
  11. https://en.wikipedia.org/wiki/Amazon_(company)
  12. https://strategicanalysishub.com/ansoff-matrix-of-amazon/