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Amazon.com from start-up to 2004
Amazon.com from start-up to 2004
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Amazon.com: Is the Job Really Worth It?
Christina R. Vandiver
Amazon.com
Information Systems for Managers
WJ Patterson
Summer 2014
August 27th, 2014 Abstract
The purpose of this paper is to analyze and report on potential positive and negative influences, and uses of Information Technology that could affect Amazon.com over the next 3-5 years. This paper will discuss the problems found that can be fixed with IT, and the opportunities that can be taken advantage of with IT. I will provide justification for the problems listed, opportunities, and future IT predictions.
Amazon.com: Is the Job Really Worth It?
DESCRIPTION OF AMAZON.COM
Amazon.com opened for business on July 16, 1995. The company then consisted of a few people packing and
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The first thing that they need to do is concentrate on safety. No matter what the job is, safety should always come first. If you can't complete the job within the laws of physics, then the job should not be completed. The next thing Amazon.com should do is a case study. Are the complaints only coming from certain warehouses, or are these complaints coming from all sites across the world? Are they only coming from within the United States? Once they are able to pin point the location, then they need to send a team of the best Human Resource representatives out to the problem child locations, and start talking to the associates. If they are able to find out exactly what the root cause of the issue, then they will have a better chance of fixing it. Whether it is working conditions, pay, etc. everything is fixable. If they issue is money, which I can almost guarantee it is, Amazon.com will have to look into trying to pay their associates competitive wages. It's hard for someone to work for a multi-billion dollar company and make less than someone working for a company who may only make a million dollars every other year. It makes the employees feel like they are being taken advantage of, and that's not going to go over well with people. As I've said many times before, you have to spend money to make money, and if Amazon is all …show more content…
(n.d.). About Amazon. Retrieved July 23, 2014, from Amazon.com: http://www.amazon.com/Careers-Homepage/b?ie=UTF8&node=239364011
MorningStar. (2014, July 30). Amazon.com Inc Industry Peers. Retrieved July 30, 2014, from MorningStar: http://financials.morningstar.com/competitors/industry-peer.action?t=AMZN
Muu, J. K. (2014, July 15). Amazon Fire Phone: The New 3D Smartphone That's Causing Chills to Other Smarthphone Companies. Retrieved August 7, 2014, from Hallels.com: http://www.hallels.com/articles/2460/20140715/amazon-fire-phone-new-3d-smartphone-smartphone-companies.htm
Satariano, A. (2014, June 14). Amazon Worker Issues Mount Amid Labor Department Scrutiny. Retrieved August 4, 2014, from Bloomberg.com: http://www.bloomberg.com/news/2014-06-14/amazon-worker-issues-mount-amid-labor-department-scrutiny.html
Smith, K. (2013, March 27). 10 Mind-Blowing Facts About Amazon.com. Retrieved July 23, 2014, from Business Insider: http://www.businessinsider.com/10-mind-blowing-facts-about-amazoncom-2013-3?op=1
Webley, K. (2010, July 16). A Brief History of Online Shopping. Retrieved July 20, 2014, from Time:
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...
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”).
Jeff Bezo’s began Amazon in his garage in July 1995 with three Sun workstations setting on wooden doors for tables and extension cords running from everywhere (Academy of Achievement, 2010). Right from the beginning he was a visionary leaving his well paying job as a senior vice president with D. E. Shaw to begin Amazon.com (Academy of Achievement, 2010). Being the visionary that he is he saw an opportunity prompted by the huge growth rate of internet use in a single year and ran with it never looking back. Jeff realized that the internet had “no real commerce to speak of” so he began researching possible businesses (Academy of Achievement, 2010). “After reviewing 20 mail order businesses and deciding which could be conducted more efficiently over the internet than by traditional means he decided on books” (Academy of Achievement, 2010). He thought books were perfect because attempting to send huge catalogs for all the available books would be expensive and cumbersome, but an online resource database that was easy to navigate would provide customers with easy access and a single point from which to shop. “In 30 days, with no press, Amazon had sold books in all 50 states and 45 foreign countries, obviously by the success of Amazon he was right (Academy of Achievement, 2010). In a case study written by Javad Kargar called “Amazon.com in 2003” he stated that “Amazon's online store was a big hit, with about $5 million in the first year of operations” (2004). This huge success so quickly would have confirmed for Jeff that his idea was viable and drove him to continue to strive for more. Jeff Bezo’s charismatic-visionary leadership is the key to his and Amazon’s success.
Amazon is the biggest online store in the world; since its creation in 1995, Amazon has adopted improvements throughout its processes changing considerately. This reports describes the changes adopted by Amazon. In addition, this report generates a diagnosis of each step and makes a deep analysis of the decision makings by amazon based on three specific topic; 1) when Amazon managed inventory internally; 2) when Amazon decided to outsource inventory management and lastly when amazon decided to sell products of competing retailers on its site.
Amazon’s macro-environment is made up of six external factors: political, economic, environmental, technological, social, and legal conditions. These factors are important because they shape how the company operates and you must know each piece to be able to compete within the retail and eCommerce industry. An evolving political factor are the efforts the government has made toward punishing offenders of cyber-crime. This kind of thief wasn’t walking into your store, but hacking into your computer. This type of crime wasn’t possible before the internet. The government has started to take these crimes more serious as technology evolves. Technology is a factor that Amazon.com must invest heavily in. They are reliant on having top of the line technology to survive against cyber-crime and to stay relevant in the tech world. ECommerce is everywhere now and competition is very high. This brings in legal conditions; Amazon must know what laws exist in which countries because they are a
Launched by Jeff Bezos, the Amazon.com website started in 1995 and is today considered as one of the most prominent retail website on the internet with a record turnover of US$ 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).
In conclusion, Amazon has embraced innovation. The company has not had worries with the use of innovation. They use innovations as measurements and end up with flourishing business ideas. They experiment, learn through outcomes and try new ways of doing things. They have put the customer as their first priority. Everything that the company does gears towards attracting customers through quality of services, availability of products, assurance of delivery and addressing customer feedbacks. These factors have helped the company become a multinational and a multimillion company where customers flock everyday.
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
Amazonrobotics.com has its own robotics division where the focus is towards the delivery of products smarter and faster, in a way that creates a more reliable customer experience. This creates a challenge for HR. Amazon must determine if fulfillment center employees should be transferred to other departments; laid off, fired, or be trained to run the Kiva system. In this last scenario, they will need to be trained if this is the case, although I fathom to guess there will be less employees needed since the robots themselves are autonomous. Also, these may be specific skills which may require a higher education level which HRD cannot train current employees. These are real issues that HRD faces in their developmental activities and creates new challenges for
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.
Technological factors. This is very important factor for Amazon therefore the success of the business depends on that. Amazon has to face a lot of technological challenges and to find a way to be ahead of the competitors.
When Amazon.com first began in 1995, as strictly a book retailer, Bezos knew he had discovered an excellent company. After all, a physical bookstore cannot stock anywhere close to the number of books Amazon can offer online. Within a year, the company had a customer base of approximately 340,000 consumers and daily site visits were huge as well. But Bezos wanted to expand the company to offer music and DVDs, because he realized there was little or no barrier of entry. In the next years Amazon would emerge as a marketplace, expanding the company globally offering products from toys to kitchenware. Because of the relatively cheap prices Amazon was offering and also the growing number of online shoppers, the company was doing tremendous amounts of sales and creating profits.
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
Amazon’s also tried to spearhead the industry by introducing the customer-pleasing traits in terms of the technology, order fulfillment and retailing strategies categori...