In an effort to show dedication to its workforce and support of a broader movement promoting higher minimum wages, Amazon announced that it
In an effort to show dedication to its workforce and support of a broader movement promoting higher minimum wages, Amazon announced that it will be raising the minimum wage of all of its workers to $15 per hour. In light of the fact that most of its competitors have not followed such a policy, this could result in Amazon losing some of its price advantage relative to certain competitors. But Amazon hopes to set a trend by showing that its employees matter first and that compensating employees at higher rates results in higher levels of commitment, productivity, and ultimately, better customer service. Amazon hopes that the public will also value this move as something that is fundamentally the right thing to do for its employees. If this is the case, customers may be willing to pay a price premium to shop Amazon over other competitors. Nonetheless, may shoppers may not know or simply not care about how much organizations pay their employees and may simply shop price, thus possibly favoring competitors.
On balance and strategically, do you think that this is a good or bad move by Amazon? Why?
Answer preview for In an effort to show dedication to its workforce and support of a broader movement promoting higher minimum wages, Amazon announced that it
APA
180 Words