Amazon's Financial Analysis Of The Company Value Chain Of Amazon

analytical Essay

2149 words

Company Value Chain One of Amazon’s main focuses is to create value for it’s customers. To do this, their number one strategy is to exceeding customer’s expectations. Amazon does a lot of little things very well. These little things are often overlooked by other retailers and, as a result, create customer loyalty for Amazon. Amazon does a lot of things very well, such as personalized emails, self-service support, and easy and smart usability. Most of the emails received from retailers are immediately deleted or thrown in the junk file, but Amazon 's emails are catered specifically to the accounts user. Through your account they have access to items that you have viewed and send you recommendations based on your history. Also, if you leave …show more content…

As stated in the 2015 Annual Report released on April 6th, 2016, Amazon was the fastest company to ever reach annual sales of over $100 billion. As seen in the chart below, Amazon has had a growth of over $100 billion in sales over the course of the last 11 years According to the MorningStar financial reports the forecast of growth of earnings for Amazon over the next five years is around 25% annually and the forecasted growth for the next ten years is around 28.84% Amazon’s current ratio for the latest quarter was 1.06. This number represents the ability to pay short and long term obligations by showing the amount of current assets by the amount of current liabilities. For the most recent quarter, it can be determined that Amazon has an equivalent of 1.06 assets for every liability. The quick ratio for the company gives a better idea of the amount of liquid assets that the company holds - this includes cash, cash equivalents, short-term investments, and current receivables. In Amazon’s case, the quick ratio is 0.74 which means that there is .74 quick assets for each liability. These numbers definitely have room to grow upon and will increase with either a larger amount of quick and current assets or a smaller number of

In this essay, the author

Explains that amazon's number one strategy is to exceed customer expectations. amazon does a lot of little things very well and creates customer loyalty for amazon.
Explains that amazon does a lot of things very well, such as personalized emails, self-service support, and easy and smart usability.
Explains that the company's culture regulates employees' behavior and output controls. they emphasize customer obsession, ownership, learning and simplify, frugality, drive deep, and insist on the highest standards.

Explains that amazon's number one strategy is to exceed customer expectations. amazon does a lot of little things very well and creates customer loyalty for amazon.
Explains that amazon does a lot of things very well, such as personalized emails, self-service support, and easy and smart usability.
Explains that the company's culture regulates employees' behavior and output controls. they emphasize customer obsession, ownership, learning and simplify, frugality, drive deep, and insist on the highest standards.
Explains that the principles and norms instilled throughout the company have significantly increased their exercising control over their functions and performance.
Analyzes how amazon's ceo, jeff bezo, doesn't see anything wrong with the company’s culture and how it operates. employees complain about unmanageable pressures, insensitive management, lack of benefit, and no work-life balance.
Explains that amazon's company structure is competitive and strict for the average employee, making the intense environment not fit for fair-minded employees. this allows a more efficient and effective control system and focuses amazon to constantly improve within the market.
Explains amazon's high-volume recruitment process that sorts through candidates for the best, brightest, and most committed. the company has expanded overseas but work expectations remain the same.
Compares walmart's earnings per share and its inventory turnover rates, comparing the two companies.
Explains that amazon prime is the driving force behind their customer base.
Analyzes how amazon's financial performance has been consistent and stable over the last 11 years.
Opines that amazon is one of the best online retailers in the world in a rapidly growing market.

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Swot Analysis Of Amazon
explanatory essay
Competition- Amazon has many competitors they are up against. They have the retail market competitors like Wal-Mart and Target, the online competitors like Ebay, and then various other businesses depending on the product category. For Jeff Bezos, he wants the business to focus on the customer (Bishop, 2013). While other businesses are distracted with trying to get ahead of Amazon, Amazon is focused on the customer and not the competition.
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 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.
- Explains that amazon is a site where millions of products are for sale and other retailers can also sell goods on amazon’s website. other businesses like wal-mart and sears want to allow others to sell on their websites.
- Opines that with amazon's investments in future projects and low profit margins, it would be smart to find new sources of revenue.
- Opines that amazon will continue to grow and help the economy with more stores and jobs in the us and around the world.
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Technological Amazon, Inc.: The Business Concept Of Amazon
analytical essay
is a global company that offers internet retail shopping services. Amazon was an online book retailer established 21 years ago during the 1994s, and has grown exponentially in sales and size as the years have gone by. Jeffrey P. Bezos started it in July 1994 and has led to its success. It was possible because of the strategies Amazon used. Emerging of online banking on the internet gave rise to the idea of online shopping. To become a competitive firm strong strategies are to be made. Amazon positions itself as a low-cost retailer and offers a wide range of products and services via online which is unique in the internet retail business. Amazon competes healthily and preserves its competitive advantages as it constantly upgrades itself in the dynamic market. It also shows that Amazon can continue to grow and achieve it mission and vision of being "earth's most customer centric
In this essay, the author
- Explains that strategic management is a business concept that consists of decision-making, analysis and actions an entity undertakes with an aim of creating and maintaining an upper hand.
- Explains that technology has important effects on business operations. it has tangible and intangible benefits that will help you make profits and create the outcomes your customers demand.
- Explains that amazon is a global company that offers internet retail shopping services. it was established in 1994 and has grown exponentially in sales and size.
- Explains that strategic management is a business concept that consists of decision-making, analysis and actions an entity undertakes with an aim of creating and maintaining an upper hand.
- Explains that technology has important effects on business operations. it has tangible and intangible benefits that will help you make profits and create the outcomes your customers demand.
- Explains that amazon is a global company that offers internet retail shopping services. it was established in 1994 and has grown exponentially in sales and size.
- Explains that amazon operates using a hybrid strategy which is the combination of two of the three strategies; cost leadership, differentiation and focus.
- Explains that amazon has found ways to reduce cost by using practices that are both efficient and effective or by employing a different technology.
- Analyzes how amazon used corporate strategies to grow through focusing on customer experiences. technology advancement helped amazon revolutionize the book industry.
- Explains how technology helped amazon in seeing products more effectively make the e-commerce business more efficient. everyone in the us preferred using amazon because of its user-friendly function.
- Explains that amazon founded a gap in the market; book stores (no matter their size) and uses technology to promote itself.
- Explains that amazon's most important stakeholder is its customers and they are really enjoying what amazon is providing them. however, there is one group of stakeholders who are not enjoying the dominance of amazon in the market; the hard cover books retailers.
- Analyzes how amazon's vision, mission, objectives, and corporate culture show how it carries its operations.
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Theories Of Ethics Of Amazon
explanatory essay
Amazon is one of the largest brands in the world, reporting $23.18 billion in sales last quarter. They operate with a customer-first mentality. This is clear in their mission statement, which is as follows: “We seek to be Earth’s most customer-centric company for four primary customer sets: consumers, sellers, enterprises, and content creators (Amazon).” Amazon’s CEO, Jeff Bezos seeks to bring the highest quality products and most efficient services to their customers. According to critics of Amazon, Bezos’ goals have lent themselves to a
In this essay, the author
- Explains the purpose of this paper, which is to determine which of the four ethical theories amazon claims to be using as a guide to their social responsibility practices.
- Explains that amazon is one of the largest brands in the world, reporting $23.18 billion in sales last quarter. they operate with a customer-first mentality.
- Explains that amazon's social responsibility revolves around communities and the environment. they have provided $50 million in grants to fight climate change since the summer of 2014.
- Explains the purpose of this paper, which is to determine which of the four ethical theories amazon claims to be using as a guide to their social responsibility practices.
- Explains that amazon is one of the largest brands in the world, reporting $23.18 billion in sales last quarter. they operate with a customer-first mentality.
- Explains that amazon's social responsibility revolves around communities and the environment. they have provided $50 million in grants to fight climate change since the summer of 2014.
- Explains that utilitarianism is a theory that evaluates the consequences of the action in question.
- Explains the utilitarian's goal to weigh the consequences of any given option and come to the best possible decision for the most involved.
- Explains that deontology is unlike utilitarianism in the sense that it is concerned with the action itself. kant argued that all humans have a duty to one another.
- Explains that the deontologist's goal is to create a balanced world that follows the rule of nature. they believe that people should not be used as means, but as ends themselves.
- Explains that virtue ethics revolves around the holistic character rather than one specific action. aristotle argued that virtue was found between the extremes of each characteristic.
- Explains that ethical behavior comes not from perfection but from the intention to live as virtuously as possible. aristotle would observe the action in question and determine whether it was an ethical one based on how it contributed to the person’s character.
- Explains that care ethics deals with empathy and navigating the complexity of an ethical dilemma. the responsibility to take care of others is important to someone of the ideology. gilligan believed there was "nothing gendered about caring."
- Explains that four ideas are most central to living ethically: moral attention states that someone following care ethics will be attentive to the complexity of the situation. sympathetic understanding requires them to have empathy for the others involved.
- Analyzes how amazon fits into the care ethic and expands to other theories. their corporate culture style could be called aristotelian and utilitarian.
- Explains amazon's commitment to their communities and the environment is a classic example of care ethics. they participate in these activities because they want to do right by society.
- Explains that amazon is concerned about the environment because of the impact their business could have on the world. they strive to reduce their footprint by coming up with innovative solutions.
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Amazon Case Study
analytical essay
Although Amazon has been active trying to find the perfect strategy to make profits, the numbers in its financial statements had not shown the most optimal results. We have discuss that even though its strategies have been right according to supply chain and logistics methodologies and theory, something had been missing to represent this successful strategies into financial results. It is seen that Amazon had spent too long time finding the right strategy which the last might be the one because in the financial statements profits started to come up. Amazon still have a long way to go to mature its strategy and represents it into profits for its shareholders.
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.
- 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.
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Amazon Strengths And Weaknesses
explanatory essay
Amazon has a few downsides, but the company's relentless focus on the customer has built a strong moat around its business. Amazon doesn't make much in profits, but the durable competitive advantages of its business lines are enormous and growing rapidly. Amazon has a very favorable image in the minds of millions of consumers, which paints a very pretty picture for the company's fortunes in the long term. (Faruk, 2013)
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.
- 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.
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Amazon's Financial Comparison: Financial Analysis Of Amazon
opinion essay
Since 1996, when Amazon.com was incorporated it has never offered dividends to its shareholders (Nasdaq, 2015). The company’s dividend policy is not to pay dividends so that it is reinvested by seeking out opportunities and developing new products (Reeves, 2012, p. 17). In addition, the company’s net income has been fluctuating since 2004. According to Market watch (2015), the company’s net income in 2010 was US$1.15 billion, it reduced to US$ 631 million in 2011, it reduced further to US$ 39 million in 2012 before increasing to US$ 274 million in 2013. In 2014 the company’s net income reduced to US$ 241 million. The fluctuations in net income arise from strategic investments that have long-term returns. Stewart, (2014), notes that the high prices of Amazon.com’s shares are due to investors’ positive outlook about the company’s profitability in future. In this regard, the long-term bets have paid off the company resulting to investor confidence. Amazon 's net income for the three months ending in June 2015 was $92 Mil. Its net income for the trailing twelve months (TTM) ending in June 2015 was $-188 Mil (Bezos, 2015). In comparison to three of its top competitors, Amazon has the lowest net income.
In this essay, the author
- Explains that amazon's dividend policy is not to pay dividends so that it is reinvested by seeking out opportunities and developing new products. the fluctuations in net income arise from strategic investments that have long-term returns.
- Compares amazon's gross profit margin and its revenue to determine the percentage of each sales dollar remaining after the company has paid for all of its goods.
- Compares amazon's weighted average cost of capital and its return on invested capital.
- Explains that amazon's dividend policy is not to pay dividends so that it is reinvested by seeking out opportunities and developing new products. the fluctuations in net income arise from strategic investments that have long-term returns.
- Compares amazon's gross profit margin and its revenue to determine the percentage of each sales dollar remaining after the company has paid for all of its goods.
- Compares amazon's weighted average cost of capital and its return on invested capital.
- Explains that the operating profit margin of a business is an important factor in analyzing stock because it measures efficiency when it comes to pricing strategy.
- Explains amazon's ebitda per share for the three months ending in june 2015 was $4.16, and its trailing twelve months were $13.00.
- Explains that the net current asset value (ncav) per share is an important financial number to analyze because it can help an investor determine if a company is trading its stock at fair market prices.
- Explains amazon.com launched marketplace for handmade goods on 8th october 2015, aimed at increasing choice for clients and increasing its earnings as a middleman for third handcraft vendors. its financial performance in the last quarter is expected to increase due to the launch of india’s annual festive shopping spree.
- Explains that bezos is involved in making key financial decisions at the company. the company has mr. olsavsky brian as the chief financial officer who works collaboratively with the ceo.
- Opines that amazon's stock has continued to increase over the last five years, which shows promise for future growth. as amazon expands into other markets, it will continue to reach more customers and increase profits.
- Explains that earnings per share (eps) is an important financial factor to consider when analyzing a stock.
- Opines that investing in amazaon.com is not a viable option to take. the company's share prices have increased although there are not dividends earned, but it may not be possible to reverse the trend under bezo’s leadership
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Amazon Uses New Technology to Reinvent Old Business Model
analytical essay
The advent of internet technology has once again changed the way consumers shop and Amazon.com has been at the forefront of that revolution. Shopping malls have lost their appeal for many consumers. People prefer to shop in the comfort of their homes, comparing prices and options. Amazon.com has made it simple and is able to quickly and seamlessly fill orders and deliver products to your door. They seem to be striving to be the go-to “one-stop-shopping” destination for consumers worldwide.
In this essay, the author
- Explains that world is the world's largest online retailer, the largest web-hosting company, and the most serious competitor to netflix in streaming video.
- Analyzes how amazon.com has used industrial automation, home computers, and internet technology to develop an entirely new way of shopping.
- Explains that amazon's deal with the usps for sunday delivery is weird. here’s why.
- Explains that world is the world's largest online retailer, the largest web-hosting company, and the most serious competitor to netflix in streaming video.
- Analyzes how amazon.com has used industrial automation, home computers, and internet technology to develop an entirely new way of shopping.
- Explains that amazon's deal with the usps for sunday delivery is weird. here’s why.
- Explains how sears & roebuck revolutionized the way americans shop in the 1890s. the advent of internet technology has once again changed how consumers shop.
- Explains that amazon.com opened in 1995 to take advantage of what he believed would be huge growth in internet shopping. computerized labeling, printing, and automation have allowed them to develop massive fulfillment centers.
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History Of Amazon. Com
analytical essay
After analyzing Amazon’s management team, risks, products, potential new services, balance sheets and activities, it is clear that despite all the risks the company suffers, their success will remain over the years. Amazon has the objective to be in constant improvement and completely customer centric. In today’s world, the market demands companies determined to serve clients with the best product, the fastest service, unbeatable prices and a personalized and diverse offering of services and products. Therefore, it is a smart investment to buy a share of the company, as Amazon’s structure and business model is entirely made of what is demanded.
In this essay, the author
- Explains that jeff bezos founded amazon.com in 1994 and has remained chairman, president, and chief executive officer of the company since its beginning.
- Explains that amazon's managers proved to be qualified for their positions in the company, including thomas j. szkutak and jeffrey m. blackburn.
- Explains that amazon's primary source of revenue is the sale of a wide range of products and services to customers.
- Explains that jeff bezos founded amazon.com in 1994 and has remained chairman, president, and chief executive officer of the company since its beginning.
- Explains that amazon's managers proved to be qualified for their positions in the company, including thomas j. szkutak and jeffrey m. blackburn.
- Explains that amazon's primary source of revenue is the sale of a wide range of products and services to customers.
- Explains that amazon's goal is to provide every possible service. the company launched amazon glacier, a low-cost online file storage web service, and expanded its subscribe & save program.
- Explains that amazon's rapid growth could damage their reputation, limit their growth, and negatively affect their operating results. the service provided from amazon is dependent on commercial agreements, strategic alliances and business relationships.
- Explains amazon's risks on interest rates, foreign currency fluctuations, and changes in the market values of their investments. in 2012, 43% of its revenue came from net sales from international segments.
- Analyzes amazon's management team, risks, products, potential new services, balance sheets, and activities. amazon has the objective to be in constant improvement and completely customer centric.
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Amazon
analytical essay
From 1997 to 2000, Amazon experienced positive growth in net sales, making this upward trend likely to continue on into 2001. While operating expenses in fulfillment, marketing and technology also increased, these expenses were necessary to solidify Amazon’s opportunity for future growth and profitability. In 1998 and 1999, Amazon “spent over $429M to build a state-of-the-art digital business infrastructure and operations that linked nine distribution centers and six customer service centers located across the United States, Europe, and Asia” (Applegate, 2009, para. 1). This strategic expense in technology and restructuring suggests that future operating costs would likely level-off and the company would eventually cross over to begin making a profit.
In this essay, the author
- Analyzes how bezos's aggressive leadership positioned the company for future success based on several key factors.
- Explains that amazon experienced positive growth in net sales from 1997 to 2000, making this upward trend likely to continue into 2001.
- Explains that amazon's partnership with toys "r" us, inc. enabled amazon to use its retailing technology to build and host the online store alongside its state-of-the-art digital distribution and customer service centers.
- Analyzes how bezos's aggressive leadership positioned the company for future success based on several key factors.
- Explains that amazon experienced positive growth in net sales from 1997 to 2000, making this upward trend likely to continue into 2001.
- Explains that amazon's partnership with toys "r" us, inc. enabled amazon to use its retailing technology to build and host the online store alongside its state-of-the-art digital distribution and customer service centers.
- Explains that amazon's digital business structure was an it-based proprietary asset that provided the company with sustainable leverage to guarantee future growth.
- Explains how bezos calmed the pressures from wall street and shareholders and became cash flow positive. amazon proudly announced its first ever profit of $5.1m and a first-ever revenue that passed $1 billion from the fourth quarter to december 31, 2001.
- Explains that amazon employs a business platform comprised of brand, customers, technology, distribution capacity, and deep e-commerce expertise. bezos described this as the "tipping point" that would enable its growth and return to investors.
- Analyzes how the online retail market for amazon's existing products will experience substantial growth from 2000 to 2005. the increasing online revenues also leave room for strong competition.
- Analyzes how amazon's business structure was unique from its beginning, explaining why growth was slow, but had the potential for huge success.
- Explains that amazon has several opportunities and strengths it can call upon to create and sustain value over time. it was ranked by interband as the 48th most valuable brand worldwide.
- Cites applegate, austin, and soule (2009). corporate information strategy and management: text and cases. bloomburg businessweek.
- Cites lashinsky, a. (2012, november 16). amazon's jeff bezos: the ultimate disrupter.
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Amazon.com Business-IT Alignment Analysis
explanatory essay
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. A large part of Amazon.com's technology evolution has been driven to enable this continuing growth, to be ultra-scalable while maintaining availability and performance.
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.
- 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.
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Amazon Business Strategy: Amazon's Competitive Advantage
explanatory essay
Amazon has been able to maintain sustainable competitive advantage based on three operational strategies. These are low cost-leadership, customer differentiation and focus strategies. Low cost-leadership is pursued by Amazon by differentiating itself primarily on the basis of price. By offering low prices to customers Amazon ensures its future success. Partially modifying the costs of lowering prices over time through achieving higher sales volumes, negotiating better terms with suppliers, and achieving better operating efficiencies. Amazon makes sure that it offers the same quality products as other companies at a considerably cheaper price. Another strategy that Amazon has is its fast delivery service and there are many delivery services that one can choose from. With Amazon Prime, there are certain, but many products that have free two-day shipping. Also, with Amazon Prime, there are many offers specifically for people that have Amazon Prime. For example,
In this essay, the author
- Explains that amazon is a reliable online shopping site that provides fast delivery service and good quality for its products. the customer's satisfaction is the most important factor of amazon.
- Explains that amazon views targeting and segmentation differently from traditional marketers. the most predictive of future purchasing behavior is previous purchasing and shopping behavior.
- Explains how amazon maintains its competitive advantage based on three operational strategies: low cost-leadership, customer differentiation, and focus strategies.
- Explains that amazon is a reliable online shopping site that provides fast delivery service and good quality for its products. the customer's satisfaction is the most important factor of amazon.
- Explains that amazon views targeting and segmentation differently from traditional marketers. the most predictive of future purchasing behavior is previous purchasing and shopping behavior.
- Explains how amazon maintains its competitive advantage based on three operational strategies: low cost-leadership, customer differentiation, and focus strategies.
- Explains that amazon has 55 fulfillment centers located in north america and 53 distribution centers in europe, japan, asia and india.
- Explains that apple is considered the largest competition against amazon because apple products are more popular with the customers than amazon's products. wal-mart is also considered a competitor.
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Amazon's Mission Statement
explanatory essay
Bezos’ vision and mission statement for Amazon is “Our vision is to be earth 's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” For the most part, this vison has been achieved, Amazon is the “top revenue maker in online retail worldwide” and is geared towards giving consumers the ability to find what they want on their marketplace site. In 2014, Amazon’s mission statement was changed “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.” This was due to Amazon’s expansion of their range of consumers from only customers to customers,
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 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.
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Amazon Consumer Behavior Case Study
explanatory essay
Consumer behavior is how a company minimizes uncertainty when offering a goods or service to a customer. This is done through thorough research and marketing strategies developed by the seller. Amazon is a company that does not only practice current trends, but also influence and set them. They are the trendsetters in personalization, escapism, and the ever-important convenience. These are few of the many trends Amazon.com has created benchmarks for in the online sales industry. It is these trends that have taken to being number 13 on Forbes most valuable brands. Once at the top, their prioritization of the consumer over the business has helped them stay at the top. Colin Shaw who writes for Britton said, “Amazon.com puts the customer experience at the top of their short and long-term to-do list.” (http://www.brittonmdg.com/the-britton-blog/amazon-marketing-strategy-unusual-but-successful) Ludwig von Mises closely analyzed the approach Amazon.com is taking many years ago. This customer is king approach is what helps Amazon.com focus on the process rather than the product. Through consumer behavior trends, I believe a company has a higher success rate when this happens. See, if you focus on the process, the result will come. A good process ultimately will generate a well-balanced result. When your focus is on the final product, you lose sight of the process. By
In this essay, the author
- Explains that amazon is a growing and trending brand, giving consumers the unique shopping experience they have always wanted.
- Explains consumer behavior is how a company minimizes uncertainty when offering goods or services to customers through thorough research and marketing strategies developed by the seller.
- Opines that amazon.com is super-personalized. it's able to tell you what you want, and the taste has been taken away from the consumer.
- Explains that amazon is a growing and trending brand, giving consumers the unique shopping experience they have always wanted.
- Explains consumer behavior is how a company minimizes uncertainty when offering goods or services to customers through thorough research and marketing strategies developed by the seller.
- Opines that amazon.com is super-personalized. it's able to tell you what you want, and the taste has been taken away from the consumer.
- Explains that amazon.com is a place where people get addicted to shopping because of the personalization and convenience that it offers.
844 words
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Walmart And Amazon Case Study
explanatory essay
Another part of Amazon’s retail strategy is to serve as the channel for other retailers to sell their products and take a percentage of cut of every purchase. Amazon does not have to maintain inventory on slower-selling products. This strategy has made Amazon a ‘long tail’ leading retailer, expanding its available selection without a corresponding increase in overhead costs.
In this essay, the author
- Explains walmart is cutting on store investments and spending more on e-commerce due to falling store traffic in the us. walmart recently cut guidance for 2015, saying that it expects growth of 2-3% compared to the previous estimates.
- Explains that empty shelves and slow checkout lines are the two major problems impacting customers at under-performing walmart stores. the company is working on improving its inventory efficiency and plans to open more checkouts.
- Explains that wal-mart rolled out savings catcher, which helps shoppers compare prices on merchandise and then pays them the cost differences on a gift card. half of the receipts that the app has processed so far have qualified for refunds.
- Explains walmart is cutting on store investments and spending more on e-commerce due to falling store traffic in the us. walmart recently cut guidance for 2015, saying that it expects growth of 2-3% compared to the previous estimates.
- Explains that empty shelves and slow checkout lines are the two major problems impacting customers at under-performing walmart stores. the company is working on improving its inventory efficiency and plans to open more checkouts.
- Explains that wal-mart rolled out savings catcher, which helps shoppers compare prices on merchandise and then pays them the cost differences on a gift card. half of the receipts that the app has processed so far have qualified for refunds.
- Explains that walmart's customers want more choices, more items, and more assortment. the company will also focus on curating products so customers aren't overwhelmed by the new choices.
- Explains that amazon.com is the largest internet retailer in the world. while amazon sells products at a standard mark-up price, it has established alternate retail strategies by acting as the gateway for other retailers.
- Explains that amazon provides services like amazon prime, which delivers free two-day shipping on retail purchases, on-demand video streaming and a free access to the kindle library, all for an annual fee.
- Explains that amazon has expanded its business into manufacturing and distributing kindle tablets.
- Explains that walmart operates retail stores in various formats around the world and is committed to saving people money.
- Explains that amazon's retail strategy is to serve as the channel for other retailers to sell their products and take a percentage of cut of every purchase.
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Amazon Business Process
explanatory essay
Emphasizing on customer centricity, Amazon optimizes all of their processes to make it easier for the customer to decide and buy the product, and to make it as cheap to the customers’ as possible.
In this essay, the author
- Explains that amazon optimizes all of their processes to make it easier for the customer to decide and buy the product. amazon utilizes amazon web services to put their website in the cloud to optimize the speed of using the website.
- Explains that amazon is planning on launching the delivery drone which can carry such weight within 10 miles of their fulfilment centers (fcs).
- Explains how amazon's automated recommendations formula helps customers decide what to buy. amazon’s homepage is tailored to a customer based on criteria such as what the customer bought, and other customers who bought similar products.
- Explains that amazon optimizes all of their processes to make it easier for the customer to decide and buy the product. amazon utilizes amazon web services to put their website in the cloud to optimize the speed of using the website.
- Explains that amazon is planning on launching the delivery drone which can carry such weight within 10 miles of their fulfilment centers (fcs).
- Explains how amazon's automated recommendations formula helps customers decide what to buy. amazon’s homepage is tailored to a customer based on criteria such as what the customer bought, and other customers who bought similar products.
- Explains amazon's patent "1-click" ordering option, which uses the customer’s previously entered information needed to fulfil the purchase. this saves customers time and hassle of re-entering the information.
- Explains that amazon's employees take kaizen courses, which are japanese for "change for the best" or "improvement" from famous organizations like toyota and other japanese institutes. bezos himself took some customer support classes and dealt with some customers.
- Opines that amazon's innovation strategy is heavily influenced by their vision, which is to be earth’s most customer centric company.
- Explains that bezos believes that incremental innovation, along with willingness to fail, is the key to success. according to amazon's 2013 mission, they have four primary customer sets, which are consumers, sellers, enterprises, and content creators.
- Explains that amazon also offers certain services to specific customers to tailor to their needs. enterprises and content creators can rest amazon’s servers (10 cents per hour per server).
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