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Amazon case study solution
Amazon case study paper
Amazon case study analysis
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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 …………………………………………………………. 1 Introduction …………………………………………………………………. 2 Managing Inventory Internally ……………………………………………………. 2 Outsourced Inventory Management ....…………………………………………… 4 Amazon platform for selling retailer’s products ………………………………….. 5 Conclusion ………………………………………………………………………….. 6 Reference List …………………………………………………………………... 7 Report Amazon Case Study Executive Summary Amazon is the biggest online store in the world; since its creation in 1995, Amazon has adopted improvements throughout its processes changing considerately. This reports describes the changes adopted by Amazon. In addition, this report generates a diagnosis of each step and makes a deep analysis of the decision makings by amazon based on three specific topic; 1) when Amazon managed inventory internally; 2) when Amazon decided to outsource inventory management and lastly when amazon decided to sell products of competing retailers on its site. Introduction Since the creation of Amazon in 1995, it has been a reference of adopting a successful strategy which has preserved over time; being the largest online store in the world nowadays. In addition, i... ... middle of paper ... ...obtain benefits. Conclusions 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. file://uniwa.uwa.edu.au/userhome/Students4/21404684/Downloads/516-512-1-PB.pdf http://www.skipmcgrath.com/articles/drop-ship-order-fulfillment.shtml Reference List
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”).
Amazon 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.”
Four years after resigning from New York Investment Bank, Bezos began to establish a company that he had a vision to sell books. He bought and programmed computer software, then opened the company initially in his garage. Jeff Bezos sold his first book via the web in July 1995. When naming the company, he thought about the major river in South America and named it Amazon. By 2000, Amazon became a famous e-commerce website. In 1998, Jeff Bezos decided to diversify the company and sell many other products such as CDs (Encyclopedia Britannica, 2012). Before the next century arrived, other internet stores established to become competitors of Amazon. However, today, Amazon is a top name on the internet that is reputable to sell any type of merchandise on the internet. This paper will further discuss Jeff Bezos and his successful company, Amazon.com by analyzing Bezos’ leadership style, philosophy, the type of company Amazon is, and how this company fits ...
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,
Short Corporate history review: Everything started in 1994 when Jeff Bezos founded the biggest online bookseller called Amazon. The company started its activity for the first time in 1995 in Seattle, United States.The company is well known for its continuous innovation. They are customer oriented because they have adapted the latest technology to the customer needs. (Schneider, 2014) In few time the company has reached a large number of downloads and its first success was recorded in 1999.The name of the world’s largest online retailer come from the biggest river in the world, Amazon. This choice was based on a simply reason, to give the idea of the biggest company in the world. (Benedictus, 2013)
Amazon.com objectives and strategies are well thought out, with a lot of empathy involved along with forecasted futures. Their strategy of offering their customers the following are great deals, such as...
The launch of Amazon.com in July of 1995 was the creation of a new and bold way of doing business on the Internet. Amazon.com forced the traditional physical world brick and mortar retailer in the book industry to change the way they target the industry's consumers and then epitomized Business-2-Consumer e-retailing. Although, Amazon.com started as an online bookstore, according to eRetailNews , they have since spread its wings into other industries such as music, DVD, toys, videos etc...
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 was a venture into an emerging market of internet and had to face hidden and unexpected hurdles in order to survive and excel in the market. Therefore, Amazon.com kept modifying its strategies with their focus on enhancing customer experience of online shopping and to delivery exceptional services with complete convenience to their customers. One of the major strategic decisions was to compromise on cost saving stragegy when Amazon.com started to maintain its own warehouses in different countries in order to ensure timely and accurate delivery to their customers
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.
An alternative option available to Amazon.com is to provide customers with greater value for their money through utilizing a best cost provider strategy. Amazon has the information available to them. They could use their current status of best cost provider through offering products with superior features at a lesser cost than their competitors because they know all the products and retailers intimately. This strategy offers Amazon with the possibility of combining the low cost provider strategy with the differentiation strategy. The difference between a best cost provider strategy and the low cost provider strategy is that the best cost one is aimed at value conscious customers, whereas a low cost one is directed towards the budget conscious sector of the market.
Firstly, Amazon.com employed the cost leadership strategy by offering products and services at lower costs than competitors. The key to making this strategy successful were the economies of scale that allowed the company to offer the largest range of products to its customers.
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.
Amazon has always worked on expansion, efficiency and invention and it is part of their culture. Amazon’s success has caused a lot of lost in profits in the other retailer companies. Amazon unlike most other companies focuses on the needs of its customers and not on its competitors. Based on the culture of Amazon, their behaviors are to be patient to think long term, eagerness to invent and pioneer, customer obsession and operational pride in operational excellence. Amazon is an ambidextrous company, they work excellently on both, improving its existing business and creating an organizational space to invent future business at the same time. They constantly run numerous experiments, they see failure and invention as if they were just twins that cannot be separated. They are always adapting to the latest technology and making it suitable to them and to be more efficient. They are always inventing and testing new things, making it difficult for the companies that tries to compete with them, because of how they tolerate risks to get better and further. As a result Amazon is the fastest company ever to reach $100 billion in an annual
Amazon business strategy build on Customer Relationship Management and Information Management. Amazon uses multi-level e-commerce strategy. Amazon started concentrate on Business-to-Consumer relationships between company and their customers, and Business-to-Business relationships between company and its suppliers but it then moved to incorporate Customer-to-Business transactions as it recognized the value of customer analysis as part of the product detail. It now also helps customer to customer with the provision of the Amazon marketplace which act as an mediator to facilitate consumer to consumer