I. Amazon Business Process
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.
There are multiple ways which Amazon makes the Business Process easier, faster, and more accessible to all of its customers.
Firstly, Amazon utilizes Amazon Web Services (AWS) to put their website in the cloud to optimize the speed of using the website. This greatly optimizes speed for both internal use, and also for customer use. Even customers wanting to rent the servers from the AWS can and they do find using this service is faster and much cheaper than setting up their own servers.
Secondly, according to Bezos, 53% of all Amazon’s shipped products weight five pounds or less, and therefore, Amazon is planning on launching the delivery drone which can carry such weight within 10 miles of their Fulfilment Centers (FCs), and should greatly increase customer satisfaction because of a great decrease in delivery time (30 minutes delivery time) (Amazon Web Services 2012).
Thirdly, Amazon’s automated recommendations formula helps customers decide what to buy. By utilizing Amazon’s IT, they were able to create the “item-to-item collaboration filtering”, which customizes each Amazon’s customer website in accordance to the customers tastes and preferences, which in other words: Amazon’s homepage is tailored to a customer based on certain criteria such as: 1) What the customer bought, and other customers who bought similar products in addition to that product. 2) What the customer viewed, and what similar products are viewed and purchased. 3) This allows filtering of unwanted items, which results in easier and fa...
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...ssion, they have four primary customer sets, which are: consumers, sellers, enterprises, and content creators. To elaborate, thinking long-term about customer centricity/focused and willingness to invent on their behalf is generally what Amazon does, and therefore, Bezos explains that Amazon maximizes the rate of experimentation, and simultaneously reducing the cost of experimentation, for a product that sells is a successful product, which is the result of conducting many experiments (HRH 2013).
In addition to offering a wide range of products, Amazon also offers certain services to specific customers to tailor to their needs, such as the Amazon Web Services (AWS) whereas enterprises and content creators can rest Amazon’s servers (10 cents per hour per server). This gives the customers great flexibility to be able to terminate the contact whenever they please.
History”, n.d.). But the unbelievable pace at which Amazon added new products and new customers proved to be a formidable barrier for any competitors. Within the first 10 years Amazon accomplished an unbelievable feat; it had 49 million customers and 6.9 billion dollars in revenue, and it had done so by selling some products at a loss to build market share (Rivlin, 2005). At times it was difficult leveraging so much capital to grow market share, but Jeff Bezos’ focus on the customer and long term growth of the company proved to be the real reason Amazon didn’t fall prey to the .com bust like so many other internet
Amazon.com’s US operation business model is based on “sell all, carry few”. Amazon offers consumers a wide selection of products while keeping inventories at low levels. A major interest for Amazon in the US is optimization of netwo...
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.
Amazon is best known for their kindle, fast shipping, and selling various products (Smith). With Amazon being such a large corporation, professionalism, academics, character, and engagement are crucial parts of the success of the company. Professionalism: Amazon has grown to become the largest internet-based retailer in the world by total sales. It began as primarily an online bookstore and soon began to sell more and more electronics and then over time began to sell pretty much anything. In 1998, Amazon earned about $0.6 billion, which held steady growth from 1998-2006 (“Amazon.com”).
In addition to Amazon great physical networking presence with all of their warehouses they also have a great delivery network that allows businesses to sell their goods through Amazon. Having many warehouses spread out helps getting products delivered quicker and cheaper than many smaller businesses can. Smaller businesses sell their goods via consignment with Amazon. Selling their goods using Amazons delivery and website services helps keep cost for small businesses down despite the fees paid to
Launched by Jeff Bezos, the Amazon.com website started in 1995 and is today considered as one of the most prominent retail website on the internet with a record turnover of US$ 14.87 billion in 2007. Jeff Bezos’s intention was to create an internet based company with the most dedicated product portfolio on the internet where customers could find anything they might want. Amazon’s success is based on technology, services and products (Jens et al., 2003).
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,
Amazon has recorded a magnificent success in its business throughout the years that it has been in operation. It has attracted almost all people to use it when necessary. Amazon has built its success in business methodically and slowly. Amazon has made much success because of its ability to read market trends and diversify its operations. It started as an online book selling company. However, it changed its operations and started selling other products. Currently, many large retail shops use Amazon to host and power their websites, for instance, sears and virgin megastores. Amazon now attracts over fifty million visitors in a period of one month. Amazon has tried to make their services fit each individual user. It has based its services on the end user. It has shipping discounts, customer product reviews and a credit card with bonuses. It also has prime membership, product forums and 1-click ordering system among other services. The company has tried to make a remarkable experience for customers and visitors (Thomas, 2006).
Amazon.com creates value for its customers by offering customers broad array of products to select from through their website and ensuring timely delivery of products to exhibit high level of commitment towards their business and customers
Amazon is the world’s largest retailer online. Founded in 1994 it has started as an online bookstore but soon expends its catalog with software, video games, electronics, furniture, food, toys etc.
Jeffrey Bezos, the founder and current CEO of Amazon.com, initially started the company as an online bookstore in 1994. Within several months, Amazon spread its operation to all 50 states and abroad. Presently, customers from over 45 countries buy at Amazon. Over a short period of time, the company expanded sales to electronics, video games, software, CDs, DVDs, MP3 downloads, food, furniture, apparel, jewelry, and toys. Today, the company even produces its own products such as the Kindle series. Also, Amazon.com is one of the major providers of cloud computing services. Currently, the company is the largest global online retailer responsible for 20% of online retail market share.
Amazon.com, as an e-commerce website has emerged as a leader in the e-business world. Originally, the company began as a website that sold books at discount prices, now Amazon.com has evolved into a marketplace for the world. Jeff Bezos, the founder and CEO, has changed the business model of the company many times. He is focused on expanding the selection of goods and services offered on the website, in an attempt to please customers. However, he is having trouble managing the priorities of his gigantic company, he should give the existing categories priority and worry about expansion at a later time.
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 2002 Annual Report, Amazon has made numerous attempts so that they will remain ahead among its competitors in the industry. Among those efforts includes store personalization that cater for each customer, show customer reviews on its offering products and wide selection to the customer by placing used products next to the new products.
The SWOT analysis will help Amazon to continue its strengths, improve shortcomings, take advantage of opportunities and develop measures to deal with threats. In other word, this will help Amazon prepare adequate solutions to maintain the leading position. Through CRM, Amazon focuses on being loyal to their customers, when they are loyal to them, they figure that in return their customers would recommend others and continue to shop with them and make future purchases. Amazon makes sure that the infrastructure is taken care of so that the retention is there. When the retention is there they will continue to grow and expand their product lines so their customers will not have to take their business elsewhere. To make sure that the customer satisfaction is taken care of they live by Sic Core Values to make things happen to make sure that everything stays in order. Amazon has maintained the mission of always taking care of the customer. They currently account for tremendous distribution systems that in some way be accounted for the success the company has since it ads real value to the service they have offered. In addition to CRM and other technologies the SWOT shows a variety of ways to overcome challenges, and add value to the company. In my opinion Amazon truly values their customers and are always working on ways to improve their products and