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McKinsey 7S Model Factor Analysis of Amazon Inc.

Amazon McKinsey 7S Factor Analysis

Amazon McKinsey 7S model illustrates the ways in which seven elements of businesses can be united to increase effectiveness. McKinsey 7S model stresses the presence of strong links between elements. Specifically, it argues that a change in one element causes changes in others. Shared values are positioned at the core of Amazon McKinsey 7S model, since shared values guide employee behavior with implications in their performance.

Hard Elements

Strategy: Amazon adheres to cost leadership business strategy. The largest internet retailer in the world has been able to sustain this strategy thanks to economies of scale, innovation of various business processes and a constant business diversification. Moreover, Amazon business strategy places a great emphasis on encouraging communication between various components of its ecosystem. These elements of Amazon ecosystem include merchants, writers, reviewers, publishers, apps developers, and the information market of commentators, analysts, journalists and feature writers (Dudoyskiy, 2017).

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