33 C H A P T E R T W O Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map After studying this chapter, you should be able to . . . 1. Explain how to implement a competitive strategy by using Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis 2. Explain how to implement a competitive strategy by focusing on the execution of goals 3. Explain how to implement a competitive strategy using value-chain analysis 4. Explain how to implement a competitive strategy using the balanced scorecard 5. Explain how to expand the balanced scorecard by integrating sustainability Amazon.com typifies successful competition in the new economy far more than many firms. Some would say that Amazon invented the Internet retailing business model that all other dotcoms are struggling to copy. Amazon understands well the strategy (i.e., business model) of developing and maintaining customer loyalty, which is the key to success in retail e-business, and implements it effectively. Speaking of Jeff Bezos, the founder and CEO of Amazon.com , Robert Hof of Business-Week writes: “Jeff Bezos . . . was one of the few dot-com leaders to understand that sweating the details of Internet technologies would make all the difference. Amazon wasn’t the first store on the Web. But Bezos beat rivals in inventing or rolling out new Internet technologies that made shopping online faster, easier, and more personal than traditional retail. He offered customized recommendations based on other buyers’ purchases, let people buy an item with just one mouse click, and created personalized storefronts for each customer.” 1 The amazing thing about Amazon is that it created such a successful strategy for e-commerce at a time when there was no model to use as a guide. As Hof suggests, Amazon’s success appears to come from its ability to deliver excellent customer service with very low prices. It has differentiated itself through efficient and error-free operating systems that provide…
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