Amazons Fulfilment
explanatory Essay
2973 words
Amazons Fulfilment
Is 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).
Amazon is remaining steady to its model and is still providing goods at a low price, and providing their deliveries in the shortest amount of time. Amazon maintains the practice of making sure that every product it sells turns a profit. However, the debate lingers especially with investors who are expecting a return on their investments. The chief executive of Forrester Research George Colony stated in a New York Times article that “At some point, the piper must be paid.” How? “By raising prices. I don’t see any other way” (Streitfeld, 2013).
Almost twenty years ago, an individual named Jeff Bezos had a vision. He saw financial potential with the growth of the internet. He wanted to change the ways of retail commerce in a way that had never been done before. Amazon began as a vision and was born in Jef...
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Streitfeld, D. (2013, October 22). Monstrous sales and roaring stock, but no profit amazon’s dilemma: Company’s stock at a record high, but no significant profit made. The Tech Online Edition, 133(47), 1. Retrieved from http://tech.mit.edu/V133/N47/wire1.html
Tam, D. (2013, November 18). Faulty ps4 consoles spark new amazon exchange process: Hundreds of new ps4 owners discover their consoles broken straight out of the box. Amazon responds with a special replacement deal, according to customers. CNET. Retrieved from http://news.cnet.com/8301-1023_3-57612847-93/faulty-ps4-consoles-spark-new-amazon-exchange-process/
Warsia, Noor. (Designer). (2013, June 7). The Fulfilment by Amazon distribution model [Web Graphic]. Retrieved from http://www.digitalmarket.asia/2013/06/amazon-flows-into-india-ebay-snaps-a-us50-mln-deal-e-commerce-in-apac-to-get-fillip/
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.
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- Amazon Case Analysisanalytical essayAmazon.com Case Analysis Internal & External Matrix, Matrix Analysis and TOWS Summary, and Quantitative Strategic Planning Matrix Executive Summary This case analysis serves the purpose to provide an analytical framework to evaluate Amazon.com from an internal and external perspective, and to provide strategic direction based upon the internal and external evaluation. The case will begin with an introduction to Amazon.com. Introduction/Background Jeffrey Bezos, formerly a senior vice president for D. E. Shaw & Company, founded Amazon.com in 1994. D. E. Shaw is a Wall Street-based investment bank, and Mr. Bezos was assigned to find good Internet companies in which to invest. During the summer of 1994, he stumbled across a Web site that showed the number of Internet users was growing by 2,300 percent per month.
In this essay, the author
- Explains that the case analysis provides an analytical framework to evaluate amazon.com from an internal and external perspective.
- Explains that a mission statement should address nine essential components: customers, products or services, markets, technology, concern for survival, growth, and profitability, philosophy, self-concept, public image and employees.
- Analyzes how amazon's mission statement addresses the nine essential components of a good mission.
- Explains that the first step in external evaluation is to perform an external factor evaluation (efe) matrix, which describes the external opportunities and threats facing amazon.
- Explains that amazon is responding to existing opportunities and threats in its industry better than the average competitor, as indicated by a efe matrix score of 3.10.
- Explains that amazon's cpm score of 2.55 indicates that it performs slightly worse than its competitor group. market share, consumer loyalty, and financial position are the most important success factors.
- Explains that amazon benefits from centralized costs that can be leveraged across multiple markets. however, the strategy of international expansion does have some weaknesses.
- Describes how jeffrey bezos, formerly a senior vice president for d. e. shaw & company, founded amazon.com in 1994.
- Argues that the growing number of bankruptcies among pure-play e-commerce companies should enhance the competitive position of companies, such as amazon, longer term.
- Explains that amazon's sales growth is exceptional and its turnover ratios are excellent compared to its competitor group, but its net profit margin is atrocious.
- Argues that the ife score of 2.60 demonstrates that amazon has a strong internal position.
- Evaluates amazon's hybrid strategy of product development and joint venture. amazon has entered into two deals with toys "r" us and borders group.
- Cites kotha, suresh, bartlett, phillip, and david, fred. "amazon.com, inc.-2000." business case from strategic management concepts and cases.
- Quotes reamer, scott, smith, allyson, patel, jeetil j., and mccluskey, neil. "amazon.com: our delicate bullishness rests on platform monetization."
- Cites lund, brian, gross, michael, leichter, stephanie, and eads, stefani. "why amazon's board is part of the problem."
4446 wordsRead More - Amazonanalytical essayWould Amazon.com achieve its aggressive goal of becoming cash flow positive by the end of 2001?
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.
- 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.
802 wordsRead More - Amazon Business Advantageanalytical essayThe most obvious technological advance that helped Amazon, and the one that launched the company, was the internet (Parnell, 2014). Jeff Bezos knew that he wanted to open an online business and decided to start with a bookstore due to low pricing and an existing worldwide demand (”Amazon.com, Inc. History”, n.d.). After deciding on a model, he chose Seattle as a home for his business due to its proximity to high tech workers and a large book distributor. The website opened with a database of more than one million titles, whereas many competitors only stocked 2,000, and the orders went directly to wholesalers. Amazon quickly expanded their database to 1.5 million books and started offering deep discounts which attracted many new customers.
In this essay, the author
- Explains how jeff bezos decided to open an online business in seattle due to its proximity to high tech workers and a large book distributor. amazon quickly expanded their database to 1.5 million books and offered deep discounts.
- Explains how amazon came up with the idea of associates which generated a unique form of advertising. bezos proved that his market share driven approach could lead to profits.
- Explains that amazon started selling books below wholesale cost to build a name brand and customer base for the kindle, but publishers colluded with apple to raise e-book prices.
- Explains that amazon's website set the standard for being customer friendly, classifying the books into areas that made browsing easier, and providing recommendations based upon past purchases.
- Analyzes how mattel's growth in revenue since 1997 has been anemic 1.4% a year and an even more depressing.8% since 2006. the 1998 annual report is almost an exact copy of the 2014 report except for the addition of monster high.
723 wordsRead More - Business Analysis Of Amazonexplanatory essayAmazon is a large well-known business that I decided to write about because it’s a site where many people worldwide and students from Montclair State University (MSU) use to purchase many things such as books and other necessity for their classes. Amazon was the business that I picked rather then other institutions because I wanted to develop and research their company in depth to find out different techniques and discover what Amazon is all about. Especially since it’s a company that many of my friends and family members use every day. “Amazon.com is an American e-commerce company based in Seattle, Washington. Founded in 1994 by Jeff Bezos, and launched in 1995, Amazon.com began as an online bookstore before diversifying its product lines.”
In this essay, the author
- Describes amazon.com as a well-known e-commerce company based in seattle, washington.
- Explains that amazon.com is a profitable business that provides goods and services necessary to an economic system. their natural resource is building sites, technology, software, credit cards interest, and charges on shipments.
- Explains that amazon provides plenty of goods and services at all prices, variations in items, payments, and protection. amazon makes money by taking a small percentage of the sale price of each item that is sold through its website.
- Explains that amazon is a business that sells items from other businesses, and they have an opportunity for customers to make money by selling their own products to establish profit.
- Explains that amazon's current logo was designed to portray a smile from the letters that it has from a to z.
- Explains that amazon.com is one of the largest retailers of goods online. it has 340 million users and 30 million new customers each year.
1076 wordsRead More - Inside Amazonanalytical essayThe year was 1995, when Amazon made its first sale, a book, sold from the Seattle home of founder Jeff Bezos. Eighteen years later Amazon has become an e-commerce giant entering the ranks of a Fortune 100 Company and the world’s largest retailer with sales and revenue topping 61.09 billion in 2012. This achievement is nothing short of astounding considering it’s humble beginnings. While adversaries question Amazon’s continued success following Bezos, “Everything I Know” philosophy will ensure their e-commerce world dominance.
In this essay, the author
- Describes amazon fresh, an online grocer offering home delivery of everything from fresh groceries to local area products in seattle, los angeles, and san francisco.
- Describes amazon fashions, the one-stop shop for design from head-to-tee, which includes everything from heritage brands to contemporary design.
- Analyzes how jeff bezos' "everything i know" philosophy ensures amazon's e-commerce world dominance.
- Describes amazon web services as a pay-as-you-go elastic compute cloud (ec2), which aids in software, networking, databases, and deployment and management.
- Cites jeff bezos' video about amazon and zappos. blandino, s., amazon’s culture: how to shape an enduring organizational culture.
1679 wordsRead More - Swot Analysis Of Amazonexplanatory essayDiversification-moving away from core competence- At the beginning, Amazon’s focus was selling books online and they have now moved onto difference ventures. While branching out helps the company to grow, they may be doing too much and losing their strategic advantage. If they don’t focus in on what made them successful, they could get lost in the shuffle and open themselves up to
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.
- 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.
1745 wordsRead More - Amazon Swot Analysisexplanatory essayAmazon 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.
- 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 - 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 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
1593 wordsRead More - Amazon.com Case Studyargumentative essayThe 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 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.
1495 wordsRead More - Analysis of Amazon.comexplanatory essayAmazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage doubled annually, thus, allowing for the expansion of the industry. Google is launched a year later, in 1998, only to become the most used search engine in the world and an essential partner for the online retailers by helping them tailor their websites to customer’s personal preferences and by advertising. After that, more and more people see the opportunity in the growing industry and enter it. By 2001 there are more than 513 million Internet users globally, which calls for action in terms of creating regulations and laws to protect the users and personal property. In 2003, Apple launches iTunes, and provides a platform for low-cost digital downloads. Another major change is the appearance of social media from 2004, which is one of the biggest influencer on the state of the industry. With the launch of iPhone in 2007, this trend strengthens as people get to enjoy the Internet anywhere they want to. From then on, technological advancements have made it extremely easy and fun to shop online, making it ...
In this essay, the author
- Explains that amazon.com operates in the online retail industry, which is one of the fastest growing globally and outperforming the ordinary retail marketplace.
- Describes amazon as an american international electronic commerce company founded in 1994 and headquartered in seattle, washington. the company has grown and made its way to fortune 100 companies.
- Explains that amazon's primary source of revenues is sales of wide range of products and services. the company is mostly a reseller that offers the products of other companies to customers.
- Describes enright's article, "global e-commerce to reach $1.5 trillion in 2015." internetretailer.
- Explains heller, laura, and yahoo! finance's "the future of online shopping: 10 trends to watch."
- Describes kenney paul, alison, and the wall street journal's 2014 retail industry outlook.
- Explains that the sector's performance is forecast to decelerate, with an anticipated cagr of 14.6% for the five-year period 2012 - 2017, which is expected to drive it to $1,248.7bn by the end of 2017.
- Explains the importance of data mining and social media for online retailers.
- Explains how jeff bezos created a list of 20 products that could be marketed online. he decided to sell books online due to the world-wide demand for literature and low prices.
- Explains that amazon entered the e-book hardware industry in 2007 with the release of the original kindle reader.
- Explains that amazon is the leading online retailer in the world, with a net worth of $170 billion.
- Compares the growth of the online retail industry with that of amazon.
2511 wordsRead More