REPORT 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 ……………………
Business-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.
• Amazon Supplier Relationships Subject it to a Number of Risks. We have significant suppliers, including licensors, and in some cases, limited or single-sources of supply, that are important to our sourcing, services, manufacturing, and any related on-going servicing of merchandise and content. We do not have long-term arrangements with most of our suppliers to guarantee availability of merchandise, content, components, or services, particular payment terms, or the extension of credit limits. If our current suppliers were to stop selling or licensing merchandise, content, components, or services to us on acceptable terms, or delay delivery, including as a result of one or more supplier bankruptcies due to poor economic conditions, as a result
To recap it all, we can clearly see that Amazon has respected their value chain and by doing so created a means of delivering time after time. Demand chain and supply chain relates to how a company can gain maintain and understand how to keep their competitive advantage for a specific period in time. We have learned that amazon has brilliantly placed themselves in a position that would anchor their consumer’s future buying decisions. With the proper information, correct management and direction and support companies should follow the way this company has set themselves up to become pioneers in the e-commerce business. This inspirational company took a strategic idea and waited for the best time to act and therefore created a lasting memory on the e-commerce business industry.
Team,
As some of you may know, Amazon has recently become a client of Deloitte. Amazon is a company that sells merchandise, produce and other goods through Amazon.com. They have also expanded into the same day delivery industry through its new venture, Amazon Prime. Recently, Amazon has been looking to focus more on growing its business outside of the United States.
In addition to Amazon great physical networking presence with all of their warehouses they also have a great delivery network that allows businesses to sell their goods through Amazon. Having many warehouses spread out helps getting products delivered quicker and cheaper than many smaller businesses can. Smaller businesses sell their goods via consignment with Amazon. Selling their goods using Amazons delivery and website services helps keep cost for small businesses down despite the fees paid to
One 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
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.
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.
A major strength of Amazon.com is that the company offers a wide variety of products and services. Amazon distributes only the best quality services and products. “It is reliable, convenient, offers one of the lowest and fastest shipping, the minimum price, and many free added features with its services and has an ample selection of goods. Amazon has a brand reputation for impeccable customer service” (Jurevicius, 2013). One of the more popular features that Amazon offers is its prime shipping. “Amazon.com Prime was launched in 2006. For a rate of $79 a year, customers have access to unlimited free two day shipping and upgraded overnight shipping for $3.99 on qualified items purchased from Amazon.com’s storefronts” (Charles W.L. Hill, 2008). Amazon.com customers are now able to receive their products in a fraction of the time it would normally take for their items to arrive.