...Amazon Supply Chain Management Student Name Course/Number Date Instructor Amazon Amazon is a Fortunate 500 company which was incorporated in 1994 and went online in year 1995.it has been listed in NASDAQ national Market since 1997.Company objective is to provide it customer product at low cost, convenience and with lot of options to search. It started as book retailer and then extended its product and offerings to other parts of country. Amazon is the largest internet retailer since 2000.Company focus more on innovation due to which it has become market leader in e-commerce segment(Mirow, 2005). Business Strategy of Amazon The business strategy of the company is to make itself the best place for the customers to buy products and to discover new products which will be available online. The business strategy of the company focuses more on providing value to each customer by creating disruptive technology innovation and provides products at the lowest cost to the customer with in specified time. There are various steps company has taken to implement its business strategy like providing better search options, reviews of the customers, recommendations, secure payment services and assuring on time delivery by focusing on availability and transportation (UNSEC, 1998). Supply Chain Strategy of Amazon Amazon followed excellent supply chain strategy .It focused on increasing the number of warehoused and also it established excellent inventory management system to...
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...Amazon case study analysis ---- Jiachuang Sun 1. Review of Amazon’s strategy between 2007 and 2009 Strategic analysis Profiling the business: ➢ Mission: Amazon’s mission is to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible price[1]. ➢ Product/service analysis: Since the establishment of Amazon, new products has been kept adding into the original book category and Amazon has moved further to provide service. There are three product categories in Amazon, media category, electronic and general merchandise category and other category like Amazon web service and Amazon Enterprise Solution. This means you can buy almost everything from Amazon. ➢ Sales and gross profit analysis: The net sales growth of Amazon in year 2007 and 2008 was in average 30% and the total sales in 2008 was $19166m. In the same time, the gross profit grew from $3353m in 2007 to $4270 in 2008. Actually, both the sales and profits grew quickly since 2001 and they seemed to grow at a quicker way. External environment analysis ➢ Opportunities and threats: • Opportunities: to further improve the speed of delivery; international expansion in emerging markets such as China and India; extension of brands into new areas; through acquisitions and partnership to consolidate Amazon’s technological capability...
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...INDUSTRY COMPETITION: Amazon exists in a highly competitive e-commerce industry with tough competitors like Apple, Barnes and Noble, E-Bay. However Amazon has competitive advantage in the following aspects: i) Pioneer Advantage: Amazon established its niche as the first online book seller in the year 1997. Today Amazon is the nation’s biggest book seller and world’s largest online retailer (New York Times, 2012). Amazon has managed to keep up with technology by investing in cloud computing and bringing to market mobile devices like Kindle e-reader. The recently announced Kindle Fire is another strategic differentiator in Amazon product portfolio. Kindle Fire facilitates delivery of Amazon’s services and content to customers, and provides them the mobile-device experience. It has established itself as the leading Android tablet with a 54.4 percent market share (comScore, 2012). ii) Amazon’s main focus on customer satisfaction has ensured their position in the on-line retail market. Amazon is highly invested in providing customers convenience, selection, prices and personalized services (Mirow, 2005). Amazon’s e-commerce platforms with highly granular array of choices and mobile shopping apps, have vastly improved the shopping experience for the customers. According to a recent online retail customer satisfaction survey, Amazon topped the list, outdoing competitors like Apple, eBay, Netflix, Best Buy, Walmart (techcrunch, 2012). iii) Amazon has been experiencing marked...
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...Chryst Abstract This paper will choose two (2) segments of the general environment that would rank highest in Influencing Amazon.com, Inc., and assess how these segments affect the internet retailing industry in which Amazon operates. The paper will also consider the five (5) forces of competition, and choose the two (2) estimated to be the most significant for Amazon. This paper will further evaluate how well Amazon has addressed these two (2) forces in the recent past. Again, the paper will predict what Amazon might do to improve its ability to address these forces in the near future. Next, the paper will evaluate the external threats that affect and opportunities available to Amazon. The paper will also give opinions on how the Amazon should deal with their foremost threat and the greatest opportunity. Finally, this paper will determine the Amazon’s resources, capabilities, and core competencies; analyze their value chain to determine where they can create using the resources, capabilities, and core competencies discussed above. External and Internal Environment All other things being equal, the primary objective of any business is to obtain a larger market share, affect its bottom line, grow, and become successful. To achieve their goals, businesses must deal with their stakeholders which include: customers, suppliers, employees, competitors, shareholders, society and others. Businesses will encounter stiff competition domestically and internationally...
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...are consequences of diversification strategies. It is possible to classify companies according to the type of diversification strategy selected. Unrelated diversifiers are companies that diversify across industry, while related diversifiers are firms that diversify within the industry (Kim, Hwang and Burgers 1989). Companies pursuing related diversification over a period of time have achieved superior performance than companies following an unrelated diversification (Palepu 1985). Amazon has started its business by selling books and music, soon after it incorporated online auctions for airlines tickets and hotel rooms, computer hardware, pet food and pet accessories, electronic cards, toys and consumer electronics. Whereas Amazon has achieved very high volume of sales and gained important market shares in the book industry, the company has never been profitable. As a result, in this essay, in order to determine if Amazon’s decision to diversify so extensively was a wise decision, we will firstly describe the firm business model and the reasons for its success. We will then try to determine if this business model is applicable to Amazon’s diversification strategy as well as the limit of diversification. And finally we will try to evaluate the limit of such strategy in an international context. I Is the business model designed for selling book on internet apply for different category of products? The success of Amazon Business Model In e-tailing, one...
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...then move your family halfway across the country and invest all of your parents’ life savings to start up a new business with merely a 10% chance of success. However, Jeffrey Preston Bezos, later wellknown as “Jeff” Bezos, decided to make the gamble. “I knew that if I failed I wouldn’t regret that, but I knew one thing I would regret is not trying.” With this philosophy in mind, Bezos created Amazon.com in 1995. Initially, Amazon was just an online bookstore. Over the years though, Amazon diversified its merchandizes and began to sell DVDs, videos, MP3 players, video games and electronics, etc. The humble business, which kicked off in Bezos’s garage, has become a giant online retailer today, shipping a vast range of products to customers around the world. The inspiration for Amazon sparked off when Bezos discovered an amazing phenomenon: internet usage was increasing by 2300% a year. This statistic set off an alarm in his head. He began to brainstorm ideas on how to build a business plan around this growing industry. After doing some research, Bezos decided that books would be the best market to begin an ecommerce business in for several reasons. First, unlike clothes that consumers want to try on, or food that could potentially spoil, because books possess a minimally low risk for consumers to buy online before seeing. For this reason, Bezos believe that more people would be willing to order books online than other...
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...LECTURE 1 Fundamental Concepts of Information Systems Learning Objectives Understand the concept of a system and how it relates to information systems Explain major components of an information system Present major types of information systems in the business world Explain how a firm can use IT to gain competitive advantages What is a system? A system Is a set of interrelated components With a clearly defined boundary Working together to achieve a common set of objectives By accepting inputs and producing outputs in a transformation process A computer, an organization Example: What is an Information System? An organized combination of… People Hardware and software Communication networks Data resources Policies and procedures Collects, processes, stores, and disseminates information in an organization This system… Information systems model Components of an IS People Resources End users: the people who use the IS or the information from the IS IS specialists: the people who develop and operate IS All physical devices used in information processing Machines, data media, peripherals All information processing instructions including programs and procedures System software, application software and procedures Hardware Resources Software Resources Components of an IS (cont.) Data Resources Facts about the business transactions...
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...Technical University Online Abstract: At noon, I share an elevator ride with Auto Edge’s Executive VP, George Wirtz. Ingrid stated that I gave her some good data about relocation. The President could use my help with a presentation that he is making to a crucial group of shareholders. I will discuss the 4 various kinds of market structures. I understand that each market structure is different as related to the number of firms that compete in each one, competition levels, coming into and exiting the economy, the price range of goods, and product variety. I will relate Auto Edge’s market structure to pricing concepts. The demand for goods is related to price sensitivity. This differs. I will align market structures with elasticity of demand structures. A monopoly involves no pressures as related to competition. This can well be related to government regulation. Consumers have no freedom as related to choices. Monopoly is an example of perfect inelasticity. Government regulations are hard to keep without legal restrictions. The post office is a great example of a monopoly. They only deliver envelopes (Hagen, 2014). De Beers is a great example of a monopoly. They offered diamonds very openly. They put a complete lockdown on the whole chain of supply. De Beers put quite a bit of pressure on retailers to just sell their diamonds. The company would buy up all diamonds; so that the diamond supply was limited because of De Beers’ monopoly and ways of doing business...
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...Executive Summary The Manhattan Project Company is a consulting firm that focuses on the comprehensive needs of business organization. We offer a full range of expertise that can assist a company in retaining a competitive advantage against its competitors. We are a staff of five experienced professionals who have successfully helped many organizations plan, create and achieve their objectives. We offer a professional team approach that can bring balance to any organization. The Manhattan Project Company’s consultants specialize in specific areas which include services such as SWOT analysis, sales and marketing, competitive analysis, finance, strategic planning and many others to assist any organization with their needs. We invite business owners and organizations to choose our services and let us show you how we can help you enhance your business. Introduction CanGo’s executive management has contracted with The Manhattan Project Company to provide consulting services in order to understand how to grow its business. We have looked at some areas within the organization and found a few key areas that will assist the company in reaching its goals. SWOT Analysis Strengths: CanGo has turn out to be one of the fastest growing online small business companies. CanGo has different variety of products to offer. They have labeled themselves as “the customer”. By doing this it permits them to keep the question “what do we want” in the front position of the...
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...attract consumer plaudits for innovation. Read on to learn which brands are seen as the most innovative in FMCG, Retail, Finance, Automotive, Technology and Charity, as well as how you can influence how consumers feel about the innovation your brand displays – without relying on products. Incite, the market research consultancy, has produced its Innovation League Table for 2013, revealing who’s got the right formula, as well as how brands can apply new strategies to excel at innovation. Incite surveyed 3,000 UK consumers both unprompted and then based on over 500 popular brands to rank their perceptions of the UK’s most innovative brands. For the first time since its inception, the study also measured the degree of perceived innovation in marketing communications to investigate consumer attitudes towards what makes a brand innovative and how this relates to its overall perception. We know that marketers have the power to drive innovation, but in order to woo consumers, brands need to understand the underlying factors that are perceived to drive innovation in order to apply it to their brand. Is it about inspiring advertising? Making consumers’ lives easier? Being first to market? This report arms marketers with the insight to give their brand the innovative edge over their rivals. Innovation is the biggest lever for differentiation in a landscape where savvy consumers have innumerable choices, but it takes many forms. The findings of this study guide brand marketers through the...
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...successful business model overseas. Tesco reportedly spent a decade preparing for the launch of its Fresh & Easy chain on the West coast of America, with its top executives even spending time living with Californian families to observe the way they lived and ate. Yet six years after it opened, it announced it was pulling out - costing the firm a hefty £1.2bn. Similarly one of the world's best known brands, US giant Starbucks, was forced to close almost three quarters of its shops in Australia just eight years after it opened them, after it struggled to win sales from local competitors. There is also an important aspect that needs to be related to the process of internationalisation: Experience. The process of entering international markets by new ventures provides firms with knowledge that can be used to build additional value by the creation of skills (Barkema & Vermeulen, 1998; Ghoshal, 1987). According to Zahra et al. (2000) “New ventures competing in...
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...Running head: FAILURE ANALYSIS AND CHANGE STRATEGY 1 Failure Analysis and Change Strategy LDR-531 January 2014 FAILURE ANALYSIS AND CHANGE STRATEGY 2 Failure Analysis and Change Strategy In today’s business market, for a business to succeed, they have to be open to change, be flexible, be technologically savvy, and be able to re-invent themselves to reflect what is happening in the market at the time. “Over the past decade, policy makers and the public have become progressively more concerned as success in information markets has led to a concentration of market power that allows a few firms to dominate what is increasingly seen as a commodity essential to modern life,” (Wright, 2009). The success of the economy is dependent upon the success of businesses. When a company fails, the economy will be affected by the loss of sales, consumer purchases, income, and spending cuts due to the loss of jobs. When a household has more income, spending increases; but when the income decreases for whatever reason, they will tighten the reins on spending which will results in fewer sales. This paper will analyze some of the things that have led different companies to fail and to succeed, and then how they try to apply the lessons learned to avoid repeating the events and strategies that led to failure. Part 1: Failed Business Analysis – Borders Books Business Failure Analysis Former Executive of Borders, Andi Lobdell (2012) states, “As a former executive of Borders...
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...time due to the recent increase to boost their revenue because of competitive low price by rivals in the retail market. In addition, a tough economic trend in the world and the saturation point coming in the US also let economists expect a more customer slowdown. Although, Wal-Mart tried to target on up-markets with their high-grade products as a new strategy, it was abolished due to individuals with lower incomes did not adapt to their shopping habit. As a result, Wal-Mart set the price leadership strategy, which pursues lower costs in broad target. This grass-roots strategy led the company to the success. Lee Scott, CEO of Wal-Mart, pointed that their decision based on customers’ monetary condition was totally right in the current economy, and they believe that it is still vital to continue in the next spell Another fact is the successful decision on international operation. Wal-Mart has been running this international division in 13 countries and operated expansion of its subsidiaries carefully (walmartstores.com). However, they have also failed in some divisions because of unsatisfactory sales results. As an example of their decision, Wal-Mart ceased their German operation to sale 85 shops to a local competitor (walmart.com), they also closed operations in South Korea in 2006 (walmart.com). On the other hand, remaining divisions are expanding its market share in the country increasingly, such as ASDA, which is the UK operation. According to the survey from Coriolis...
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... Business Strategy II 1. Liu Shu 6509037 Introduction Google and Apple are giants in technology industry. These two companies provide innovate products or service and have unique organizational structure and culture. Under the increasing pressure of cost reduction and local responsiveness caused by globalization development, both Google and Apple are transforming into transnational organizations. This report will critically evaluate the comparative transnational effectiveness of Google and Apple in terms of motivation means and mentalities, layers of competitiveness, across boundaries management and corporation social responsiveness (CSR). 2. Motivations Means and Mentalities Initial incentives of Apple and Google expansion were different because of their distinct business focuses. Apple generates its profits by selling cutting-edge electronic devices, whereas Google even though has its own products such as some newly invented wearable devices, its benefit basically comes from their advertising. Therefore, Google do not have to secure key supply, and access to low-cost market. Nevertheless, seeking boarder market seems to be very important for both of these to enterprises. Moreover, the emerging motivations for Google and Apple are quite similar. After they began to expand, the forces which triggered the expansion in the first place, may turn into secondary when they make emerging global strategies. However...
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...HW1 study guide (will be included in quiz1) 1. As discussed in the chapter opening case, which of the four generic strategies did Verizon employ to combat the competition offered by AT&T? a. low-cost leadership b. focus on market niche c. customer and supplier intimacy d. product differentiation Answer: D 2. According to the ________ definition of organizations, an organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment. a. microeconomic b. macroeconomic c. sociotechnical d. behavioral Answer: A 3. All of the following are major features of organizations that impact the use of information systems EXCEPT for a. business processes. b. environments. c. goals. d. agency costs. Answer: D 4. Business processes are collections of a. informal practices and behaviors. b. formalized and documented practices. c. routines. d. rights and privileges. Answer: C 5. Mintzberg"s classification of organizational structure categorizes the knowledge-based organization where goods and services depend on the expertise and knowledge of professionals as a(n) a. entrepreneurial structure. b. divisionalized bureaucracy. c. professional bureaucracy. d. adhocracy. Answer: C 6. A large bureaucracy existing in a slowly changing environment that produces standard products and is dominated by centralized management making is classified by Mintzberg as a ________ bureaucracy....
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