Amazon.com Case Study
argumentative Essay
1495 words
The objective of this case study is to outline and provide a brief overview of Amazon.com’s (Amazon) mission, strategic direction, core competencies, relied technologies and their future impact of new technologies, and how management and use of consumer data will impact future business.
In addition, we have analyzed Amazon’s strengths, weaknesses, opportunities and threats in a SWOT analysis. Based on this analysis, and research, we have recommend a course of action as to how Amazon should respond to their weaknesses and threats and how best to leverage strengths to take advantage of available opportunities.
Amazon’s Mission and Strategic Direction
Amazon.com, Inc. is an internet retailer headquartered in Seattle, Washington founded by CEO Jeff Bezos. Their mission and strategy is quite simply “to offer Earth’s Biggest Selection and to be Earth’s most customer-centric company, where customers can find and discover anything they may want to buy online and [we] endeavor to offer our customers the lowest possible price.”1 And, if they can’t help they will point the customer to a site that can.
The company accomplishes this by operating six global internet sites: www.amazon.com, www.amazon.ca, www.amazon.de, www.amazon.jp, www.amazon.co.fr and www.amazon.co.uk. Through their zShops, auctions, affiliate program, Merchants@ and Amazon Marketplace programs, Amazon, and their sellers and partners, offer new and used collectibles and products in categories such as apparel and accessories, DVDs, electronics, computers, books, music, videos, cell phones, tools and hardware, the list is almost endless. In order to maintain quality, the company packages and ships all of its merchandise. They also continue to negotiate volume deals with suppliers to meet their goal of lowering prices.
Additionally, Amazon has formed partnerships and alliances with publishers, other on-line retailers, technology providers, either handling their web site operations or linking brick-and-mortar entities to its virtual storefront. As part of their diversification strategy, Amazon recently acquired Internet Movie Database www.imdb.com (IMDb), which is an authoritative source of information on movie and entertainment. This acquisition is one of many Amazon is making expand its product and service offerings. The company is also preparing to sell internet domain names and already ...
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...omers. Possible future partnerships could involve companies like AT&T who is currently developing a “web cents” card for online shopping. This partnership could also lead to technology developments which Amazon already uses to leverage its position. All in all Amazon should do well if it continues to stay true to its mission – the customer.
References:
Amazon.com, “Investor Relations,” “About Amazon.com,” “Annual Report,” “Privacy Notice,”, “Web Services,” www.amazon.com, Online, May 2003, www.amazon.com>
Kaplan, Simon, “The Right Fit,” www.cio.com, Online, May 2003 www.cio.com/archive/120101/fit content.html
Dignan, Larry, “The Day Ahead: Dot-coms grow up, chief execs step out,” www.zdnet.co.uk, Online, May 2003, Fool.com, “Amazon’s CEO Letters,” www.fool.com, Online, May 2003, www.fool.com/server/foolprint.asp?file==/news/foth/2002/foth021119.htm
Bannan, Karen J., “Book Battle,” Media Week,” EBSCOhost, Online, May 2003, Vol. 10 Issue 9, P72, 2p, 5c
Hoovers.com, “Profile,” www.hovers.com, Online, May 2003, www.hoovers.com/premium/profile/3/0,2147, 51493,00.html
Fortune.com, “Amazon: Can Amazon Be Saved?,” www.fortune.com, Online, May 2003, www.fortune.com
In this essay, the author
- Explains that amazon's core competencies are in its ability to effectively use and develop technology to drive site traffic and enhance the customer experience.
- Explains that amazon's data warehouse contains information on people who shop at amazon.com and its sister and affiliate sites and is driven on internally developed software.
- Recommends amazon improve its responsiveness, features, and functionality of their website to maintain its competitive edge.
- Describes amazon.com's investor relations, privacy notice, and web services.
- Explains that the purpose of this case study is to outline and provide a brief overview of amazon.com’s mission, strategic direction, core competencies, relied technologies and their future impact of new technologies.
- Describes amazon.com as an internet retailer headquartered in seattle, washington founded by ceo jeff bezos.
- Explains that amazon's competitiveness lies in its proprietary technology, which is licensed to companies like target to run their e-commerce site.
- Explains amazon's proprietary technology transforms the online shopping experience into the easiest and most enjoyable experience online. the site conveys to the customers they can have it their way, all day.
- Analyzes international issues such as export and import restrictions, tariffs and other trade barriers, fluctuations in currency rates, political instability, longer payment cycles, adverse tax consequences, seasonal reductions of business activity, and difficulties in staffing and managing foreign operations.
- Cites dignan, larry, fool.com, "amazon’s ceo letters," and karen j.
Related
- analytical
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- Analyzes how amazon's vision, mission, objectives, and corporate culture show how it carries its operations.
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In this essay, the author
- Explains that amazon began in 1995, founded by jeff bezos in 1994 in seattle, washington. they sold their first book, fluid concepts and creative analogies, by douglas hofstadter, in july 1995.
- Explains bezos' vision and mission statement for amazon, which is to be the "top revenue maker in online retail worldwide."
- Explains that amazon's initial strategy for company growth was focused on mergers and acquisitions of various companies starting in 1998 and is still in effect.
- Explains that amazon invested in subsidiaries and produced their own products such as the kindle e-reader in 2007 and the introduction of amazon prime in 2005.
- Explains that amazon has faced a number of challenges, mostly lawsuits and controversies. barnes & noble's first lawsuit was settled out of court in 1997, and walmart’s theft of trade secrets in 1998.
- Narrates amazon's controversies, including boycotts, poor work conditions, and taxes. amazon has toughed it out despite all these setbacks.
716 wordsRead More - Amazon's Respect for the Value Chainanalytical essayValue Chain Analysis Technology has played a huge role in how companies today conduct business with their consumers. Over the past few decades there has been a shift in business models and strategies because of the emerging innovation in technology. One of these innovation are e-commerce, businesses that use e-commerce can now see a major difference in sales and revenue. Amazon has taken the idea of e-commerce and turned it into a successful and profitable business. Amazon Company developed a brilliant strategy for emerging into an already competitive market.
In this essay, the author
- Explains that amazon's demand chain is a series of events that lead to completing customer satisfaction or customer delight.
- Explains that amazon.com is an e-commerce site that offers its customers a wide variety of products and services, including accessories, shoes, health and beauty products, and electronics.
- Explains that amazon.com has been able to offer consumers a wide variety of different products. this has created an advantage over traditional retailers due to limited warehouse and shelving space.
- Explains that the company has made its objective to keep the focus on how to enhance and utilize innovation and creativity to increase the value of consumers.
- Analyzes how the amazon company has a strong focus on their supply chain and how it operates, which translate into more focused marketing plans. they have made major steps in the book industry.
- Explains that having a competitive advantage means that you have met an unmet standard that hasn't been met by any other competitor.
- Explains that customer delight is important to amazon because it is the backbone of the business.
- Explains that amazon has respected their value chain and created a means of delivering time after time.
- Explains that technology has played a huge role in how companies conduct business with their consumers. amazon took the idea of e-commerce and turned it into an already competitive market.
- Explains how amazon's easy-to-use site and selection process has helped them become a favorite among consumers. technology in its self and information technology is big part of the company value drivers.
- Analyzes how amazon.com caters to a large amount of customer's needs based on the growing needs of their consumers. the overall shopping experience that they provide their customers becomes the main objective.
1772 wordsRead More - Amazons Fulfilmentexplanatory essayIs Amazon a bubble waiting to burst? The following discussions in this research paper will explore several key issues from its birth to its debatable future. Amazon is not a stranger to arguments revolving around questions of its longevity and success. When the systemic bubble of 1999 arrived Amazon’s corporate goal was to get big, to do it fast, and to establish a hold of new markets before any other competitor. During this time frame Amazon began branching out and selling anything and everything. With the burst of the internet bubble in 2000 and 2001, Amazon changed its goal from growth to aggressively making profits in all areas of their business. In 2001, Amazon’s founder and CEO stated in a Wall Street Journal article “We’ll ferociously manage the products we carry so that we sell only products that are profitable. The thirty-pound box of nails isn’t long for our world” (Elmer-DeWitt, 2001).
In this essay, the author
- Explains amazon's "fulfilment by amazon" model, which allows asian and american sellers to send their products to amazons fulfillment centers in various locations throughout the u.s. and global markets.
- Explains the fba model, which helps the seller reach more customers. the order is filled by sales channels using inventory stored at fulfillment centers where inventory is strategically placed for easy and quick delivery.
- Explains that amazon's tracking information and customer service are two of the greatest perks for sellers.
- Explains that jeff bezos created amazon as a market place where people could buy consumer goods online. it worked on jit methods to expand its retail monopoly.
- Explains that amazon's corporate goal was to get big, to do it fast, and to establish a hold of new markets before any other competitor.
- Explains that amazon is caught in a precarious state because of its pioneer way of thinking, which puts it ahead of our current laws.
- Analyzes how amazon moved into the asian market even though it took 18 years to come into india. the launch into japan was probably the least successful for amazon.
- Explains that amazon's e-procurement strategy is impressively developed. amazon has an online fulfilment resource for all sellers, which guides them through their processes.
- Explains that customer service is an aspect of business that can make or break the reputation of many brands. bezos keeps a public email address so customers can reach him with complaints about amazon's service.
- Explains that amazon offers multiple ways for customers to get in touch with any help they may need in a way that fits the customer’s communication preference.
- Explains how amazon makes refunds and exchanges as simple as possible to convince customers to stick with online shopping.
- Explains that amazon invests in a group called "competitive intelligence", whose primary goal is to find any process that can be changed to increase its competitive advantage.
- Explains that amazon wins in online customer service, while netflix sinks like a stone.
2973 wordsRead More - Swot Analysis Of Amazonexplanatory essayCustomer Centric- Amazon’s focus is to be the “Earth’s Most Customer-Centric Company” (Thompson, 2016, para. 3). This has always been the focus of Jeff Bezos from day 1. Since Amazon is an online shopping site, they can provide personalized recommendations based off of what customers buy. There is always a review system that helps customers to make the right purchasing decisions. Being customer-centric is one of Amazon’s biggest strengths because it’s what helps it to be successful.
In this essay, the author
- Explains that amazon's customer-centric focus has always been the focus of jeff bezos from day 1. amazon provides personalized recommendations based off of what customers buy.
- Explains that amazon has a low cost structure business model, where they provide their customers with products at the lowest price possible.
- Explains amazon has sold 480 million products in the us and over 1 billion products sold internationally. there are many departments that items are grouped into along with clothing, electronics, home, grocery, baby, and so many more.
- Explains that jeff bezos has always felt that amazon is always working to build something important and always investing money in projects for the long term.
- Opines that amazon's customer convenience is one of the best when it comes to customer experience.
- Explains that amazon has a lack of profitability from having such low-profit margins. amazon says this is their strategy and it is used to deter the entry of new businesses into the market.
- Explains that amazon's focus was on selling books online, and they have now moved onto difference ventures. while branching out helps the company grow, they may be doing too much and losing their strategic advantage.
- Explains that amazon is branching out into international ventures but is late in their timing. they just recently got amazon up and running in india which seems 5 years late compared to india competitors.
- Explains that amazon's international operations expose risks. government regulations, lower levels of internet use, economic conditions, language and cultural differences, and different employee/employer relationships expose the company to risk and potential failure.
- Opines that amazon will eventually deliver their own packages — they partner with usps, ups, and fed-ex, which is a weakness because they cannot control the whole process.
- Explains that amazon's big opportunity would be to open physical stores and have a presence outside of the digital world. they are working towards convenience stores with curb site pick-ups.
- Explains that amazon has the opportunity to expand into the global market more than they have already. they are looking into adding more warehouses and delivery stations all across europe along with more support for cloud-computing.
- Explains that amazon creates products based on what the customer wants. they have created great things like the kindle, fire tv, and the echo.
- Explains that amazon has fulfillment centers spread across the country in 27 states and also all around the world and has the opportunity to expand by opening more fulfillment center and optimizing those centers.
- Opines that amazon could save money on the shipping cost and pay outside companies to deliver their packages. they could take the chance on a bigger venture and come out successful.
- Explains that amazon is a company that is, for the most part, located online and can have significant online security risks.
- Explains that amazon has many competitors and jeff bezos wants the business to focus on the customer and not the competition.
- Opines that amazon is an online retailer, so there are low barriers of entry. anyone can set up an ecommerce website and start selling their own products.
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1745 wordsRead More - The goal of this report is to analyze the Amazon's e-business strategies and activities. This report also discusses the result of strategies adopted by Amazon and how far it has been successful.
In this essay, the author
- Explains that amazon has adopted various e-business models to increase its customer base and recently set its focus on making profit.
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- Explains amazon's b2b strategy has three variations: cooperative online channel (toysrus), co-opetitive online channels (borders) and click and brick channels. each model is different from the inside in terms of technology, fulfillment processes and customer experience.
- Opines that amazon should not lose the sight of its customers and try to widen its market presence by entering strategic alliances with market leaders.
- Explains that amazon.com and toysrus announce strategic alliance, available from http://phx.corporate-ir.net.
- States that amazon.com and borders group announce strategic alliance, available from http://phx.corporate-ir.net/phoenix.
- Explains that business strategies and activities play a crucial role in the future development of an organization, such as amazon.
- Defines electronic business as the conduct of business on the internet. organizations are taking advantage of the widespread web to buy and sell goods from other companies and recently from individual customers.
- Explains that amazon has been tagged with many labels by its customers and followers because of its changing business model. the company has implemented a restructuring plan to meet its future targets.
- Explains that amazon has a track record of first gaining expertise in the market and then scaling into other areas.
- Explains that amazon and toyrus announced a strategic alliance in 2000, where each company will assume responsibility for specific aspects of the toy and video games and baby products stores.
- Explains that amazon and border announced strategic alliance on apr 11, 2001. amazon will continue to sell books on its own, but will also provide services to border.
- Explains that amazon has struck a deal with electronic retailer circuit city to give the customer advantages of picking up their purchases from hundreds of stores rather than paying for shipment charges. amazon is extending its channel expertise in web retailing to "e-nable" other retailers.
- Explains that amazon's business model has given it a boost in its online business by making strategic alliances with the industry leader and making the life of customer.
1477 wordsRead More - Amazon.com Business-IT Alignment Analysisexplanatory essayBusiness-IT Alignment Analysis It's important to realize that first and foremost Amazon.com is a technology company. Over the past years, Amazon.com grew from an online retailer into a platform on which more than 1 million active retail partners worldwide do business. Behind Amazon.com's successful evolution from retailer to technology platform is its SOA (service-oriented architecture), which broke new technological ground and proved that SOAs can deliver on their promises. Growth is core to Amazon.com's business strategy, and that has had a significant impact on the way they use technology: growth through more categories, a larger selection, more services, more buying customers, more sellers, more merchants, and more developers, increasing the different access methods, and expanding delivery mechanisms. The impact has been on many areas: larger data sets, faster update rates, more requests, more services, tighter SLAs (service-level agreements), more failures, more latency challenges, more service interdependencies, more developers, more documentation, more programs, more servers, more networks, more data centers.
In this essay, the author
- Describes ibm system journal's "strategic alignment: leveraging information technology for transforming organizations."
- Explains that amazon.com is a technology company and its growth has been driven by its soa (service-oriented architecture).
- Explains that amazon.com has selected hp to provide the highly available web infrastructure required to power one of the world's busiest e-commerce sites.
- Explains that amazon.com protects customers' information during transmission by using secure sockets layer (ssl) software, and uses third-party advertising and links to other websites.
1077 wordsRead More - Amazon Case Studyanalytical essayREPORT COVER SHEET Surname: Cadena Alvarado Given name: Mario Alejandro Class: Logistics and Supply Chain Management Lecturer: Min Qiu Word count: Tittle: Report Amazon Case Study Due date 16th of May 2014 DECLARATION I am aware of university policy on Academic conduct (published on Moodle) and I declare that this assignment is my own work entirely and that suitable acknowledgement has been made for any sources of information used in preparing it. I have retained a hard copy for my records. Table of Contents Report Amazon Case Study Executive Summary ……………………
In this essay, the author
- States that they are aware of university policy on academic conduct and declare that this assignment is their own work and that appropriate acknowledgement has been made for any sources of information used in preparing it.
- Explains that amazon has adopted improvements throughout its processes since its creation in 1995. this report provides a diagnosis of each step and analyses the decision makings by amazon based on three specific topics.
- Analyzes the three biggest changes of amazon's strategy and operations since its creation in 1995.
- Analyzes how amazon spent too long trying to find the perfect strategy to make profits, but the numbers in its financial statements had not shown the most optimal results.
- Analyzes how amazon successfully adopted the right strategy to gain its position into the market.
- Explains why amazon outsourced inventory management was a good decision, citing its strong participation in the market and its ability to negotiate with suppliers.
- Opines that amazon should work with its partners to find a balance where each part manages to obtain benefits.
1751 wordsRead More - Amazon Swot Analysisexplanatory essayAmazon.com is largest online retailer in the world. This online retailer was founded in 1994 by Jeff Bezos and it made its online debut in 1995. Amazon.com got its name from the Amazon River which is one of the largest rivers in the world. Amazon.com is head quartered in Seattle, Washington. Amazon.com markets in 11 countries and ships internationally. The mission statement of the company is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices” (Amazon.com, Inc. or its affiliates, 1996-2014).
In this essay, the author
- Describes amazon.com as the largest online retailer in the world, founded in 1994 by jeff bezos and made its online debut in 1995.
- Explains that amazon.com is reliable, convenient, offers one of the lowest and fastest shipping, the minimum price, and many free added features with its services and an ample selection of goods.
- Explains that amazon.com is a low-cost provider because of its low cost operations and progressively valuable network of fulfillment centers. amazon has more than 2 million seller accounts that make up approximately 40% of the total unit sales.
- Explains that amazon's low profit margins have led to an aerial growth in top-line sales but rendered into low earnings.
- Opines that amazon.com lacks physical presence like retailers like wal-mart and target. amazon has to bolster losses initially to bring that business to scale, before it can accomplish profitability.
- Explains that amazon.com's weakness is that it lacks a physical presence, but this can be an opportunity that the company can capitalize on as well.
- Explains that amazon could benefit by releasing more of its own brand products and services. amazon's branding efforts have been tried and tested with respect to the kindle and amazon’s prime video.
- Explains that amazon's competitors are trying to lower prices, while ebay and wal-mart offer instant gratification. barnes & noble offers physical browsing, coffee and natural socializing.
- Explains that newer corporations are like break-out stars in the retailer market as customers are always on the cusp of trying out new versions of e-commerce.
- Explains that amazon's relentless focus on the customer has built a strong moat around its business.
952 wordsRead More - Amazon Online Payment System Case Studyopinion essayOne of the greatest opportunities for Amazon is an Online Payment System. The online system allows the company to reduce transaction fees and increase ease of use for their customers. Internet sales are increasing at a fast pace. This is a product of increased fuel prices, which make driving to a store less likely, and foreign purchases. This development allows foreign purchases to buy clothing as it becomes more popular abroad. Amazon’s biggest competitors can include retail stores that online stores such as Target, Best Buy, and Walmart among others, these can be considered the most dangerous for them since they have strong market share and can be a direct competitor since they attack the same market. Amazon wish to compete in prices, offering
In this essay, the author
- Explains that amazon's online payment system is a great opportunity for the company to advance its business.
- Explains that amazon's online security is threatened by cyber-attacks and bank fraud. amazon e-commerce business has expanded globally, too many other countries.
- Opines that amazon's intense competition is a continuous threat, as it has many competitors in different industries like wal-mart, ebay or google.
- Argues that amazon should implement the same payout to its merchants as half.com in order to combat this threat.
- Explains that amazon has a medium threat of new entrants to the market.
- Opines that amazon can change its strategies to avoid new entrants by investing in successful start-ups.
- Opines that if amazon acquired living social before they peaked to their full potential, it could have provided its services to larger consumer network. the bargaining power of buyers is fairly low when it is observed in relation to amazon.
- Opines that the only threat that amazon faces when it comes to bargaining power of buyers is the lack of quality control of the products.
- Argues that amazon should require new sellers to have some sort of online-selling experience in order to ensure that the sellers are experienced and the customers are receiving exactly what they are paying for.
- Opines that amazon's swot analysis will help it continue its strengths, improve shortcomings, take advantage of opportunities, and develop measures to deal with threats.
1466 wordsRead More