...A Strategy to Disrupt the Model For High Street Retailing – a Walmart Case Study Traditional high street retailers are suffering from the continuing decline of sales share to online retailers. Last year in UK, the amount spent by average users shopping online outpaced the amount spent in high street stores for the first time. According to the prediction from the UK retailing report, high street sales share in UK will decline to 33% whereas online sales share will pick up the momentum to hit 21.5% by 2018 or at the end of the decade. This has forced the traditional high street retail giant Walmart to reconsider the long-term strategy of retailing in the future. One of the strongest advantages of Walmart is its prevalence of brick-and-mortar stores across the globe. The huge number of stores means Walmart can provide instant products access and same day delivery to a far bigger portion of the population. Customers can also have first hand experience before they buy the products. However, the situation of the dooming in-store retail sales share inevitably prompts Walmart to ask the critical question: What critical experience does online retailing provide that in-store retailing lacks? By understanding the shopping behaviors of normal consumers and comparing it to the experience that online retailing provides, the high stake decision makers should have a throughout understanding on the criteria leading to the success of online retailing. More importantly, the secret...
Words: 1380 - Pages: 6
...available at the time to the right place and at the right price (Kamal 2007). Amazon is one of the companies that have best supply chain practices in order to respond high level of responsiveness for the customers. Thereby, this paper explains about Amazon Company, analysis of Amazon’s supply chain, recommendations and barriers to implement will be discussed. Company background Amazon is an American commerce company based in Seattle, Washington, USA. The company used to be only a bookstore, but now it diversified into difference type of products. The goal of Amazon is to provide one stop shop experience where the customer can find everything on Amazon as earth’s biggest selection (Warman 2012). Amazon operates as a pure internet retailers that does not have retail store at all while the delivery will be done through Amazon’s networks of distribution centres. This operation makes the company is able to provide wider range of goods and lower cost of products with high quality. Moreover, it is also increase customer satisfaction as it supports customer convenience. An effective supply chain strategy makes the company is able to respond high level of responsiveness. Amazon balances between cost of distributions and level of services by having the efficient distribution centres and multi-tier inventory networks. However, there is a competition from substitution brands that provided the same service as Amazon, which are eBay and Walmart. Currently, eฺBay is pushing shipping fee to...
Words: 2715 - Pages: 11
...Amazon E-Commerce Joel Christensen DeVry University Author Note This research is being submitted on February 16, 2014, for Professor Sharon Carnes N505 Essentials of Telecom Abstract The author analyzes Amazon.com and its role in the e-commerce world. He begins with a brief overview of the history of the Amazon.com start up followed by the current information of the company. The second section describes the characteristics of the company as it is today. The third section discusses three strategies that Amazon currently practices. The fourth section contains a look at the weaknesses and growth opportunities that are facing Amazon.com. The fifth section is an analysis of the company’s telecommunications structure and some of the unique offerings that Amazon has as a result of their creative initiative in the telecommunication field. Finally, the author provides some recommendations for the Amazon.com company and the CEO from the perspective of a consumer and someone in the technology field. Table of Contents Introduction 4 History of the Company 4 Characteristics of Amazon 5 Current Strategies 6 Weaknesses and Growth Opportunities 7 Telecommunication Analysis 9 Recommendation 11 Conclusion 12 References 13 Amazon.com is one of the leading e-commerce websites in the United States today. I personally know of several families who use Amazon not only for their music and entertainment, but also to complete the majority of their family grocery shopping...
Words: 3484 - Pages: 14
...Amazon.com: Culture of Metrics Why a case study on Amazon? Surely everyone knows about who Amazon are and what they do? Yes, well, that may be true, but this case goes beyond the surface to review some of the ‘insider secrets’ of Amazon’s success. Like eBay, Amazon.com was born in 1995. The name reflected the vision of Jeff Bezos to produce a large-scale phenomenon like the River Amazon. This ambition has proved justified since, just 8 years later, Amazon passed the 5$billion sales mark – it took Wal-Mart 20 years to achieve this. By 2008, Amazon is a global brand with over 76 million active customers accounts and order fulfillment to more than 200 countries. Despite this volume of sales, at 31 December 2007, Amazon employed approximately 17,000 full-time and part-time employees. In September 2007, it launched Amazon MP3, a la carte DRM-free MP3 music downloads, which now includes over 3.1 million songs from more than 270,000 artists. Vision and Strategy In their 2008, SEC filing, Amazon describes the vision of their business as to: Relentlessly focus on customer experience by offering our customers low prices, convenience, and a wide selection of merchandise. The vision is to offer Earth’s biggest selection and to be Earth’s most customer-centric company. Consider how these core marketing messages summarizing the Amazon online value proposition are communicated both on-site and through offline communications. Of course, achieving customer loyalty...
Words: 3893 - Pages: 16
...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...
Words: 605 - Pages: 3
...this publication at: http://www.researchgate.net/publication/261440748 A STUDY ON AMAZON: INFORMATION SYSTEMS, BUSINESS STRATEGIES AND e-CRM ARTICLE · APRIL 2014 READS 9,305 1 AUTHOR: Abdullah Al Imran 1 PUBLICATION 0 CITATIONS SEE PROFILE Available from: Abdullah Al Imran Retrieved on: 29 September 2015 A STUDY ON AMAZON: INFORMATION SYSTEMS, BUSINESS STRATEGIES AND e-CRM MD. ABDULLAH AL IMRAN DEPARTMENT OF COMPUTER SCIENCE & ENGINEERING UNIVERSITY OF LIBERAL ARTS BANGLADESH rasel1292@gmail.com 2014 Table of content Background 3 Part 1- Information Systems utilized for internet activity 3 1. Information System 3 2. Transaction Processing System 4 3. 1-click purchase 4 4. Secure C/debit card payment 4 5. Recommendation System 5 6. Interactive searching System 5 7. Supply Chain Management (SCM) 5 8. Enterprise Resource Management (ERP System) 5 9. Customer Relation Management (CRM) 5 Part 2-Business strategies applied for internet activity 6 1. Smart Innovation Strategy 6 2. Customer Relation Management Strategy 7 3. Jeff Bezos 3 big idea 7 Page-1 A. Limitless inventory 7 B. Customer Care 8 C. High margin, lowest price. 8 4. Marketing and Promotion Strategy 8 5. Associate Program 8 Part 3- eCRM cycle Conducted for internet Activity 9 1. Customer Relationship Management 9 2. Electronic Customer Relationship Management 9 3. How amazon implement CRM 9 4. Customer Selection 10 5. Customer Acquisition 10 A. Customer...
Words: 3521 - Pages: 15
...A summary of Amazon’s business strategy and revenue model I’ve used Amazon in my books for over 10 years now since many companies, from startups and small businesses to large international businesses, can learn from their focus on the customer and the approach of using technology and analysis to improve results. It consistently outperforms other companies in its ACSI customer satisfaction rating too. I aim to keep the case study up-to-date for readers of the books and Smart Insights readers who may be interested. In it we look at Amazon’s background, revenue model and sources for the latest business results. I recommend anyone studying Amazon checks the latest Amazon revenue and business strategies from their SEC filings / Investor relations. The annual filings to give a great summary of eBay business and revenue models. A good summary of the latest business model initiatives is available in this Amazon annual report summary for 2011. For Q4, 2010: * North America segment sales, representing the Company’s U.S. and Canadian sites, were $7.21 billion, up 45% from fourth quarter 2009. * International segment sales, representing the Company’s U.K., German, Japanese, French, Chinese and new Italian sites, were $5.74 billion, up 26% from fourth quarter 2009. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 29%. Amazon has come a long way since it launched in 1995: From: and it’s offices… to it’s...
Words: 4926 - Pages: 20
...Solvency 4. Outlook & Investment Recommendation 1. COMPANY ANALYSIS Amazon has continually been growing; although the company suffered from a $ -241 M net loss at $ 89 B revenue in 2014. Analysis based on latest audited data FY 2014 by EY. REVENUE & NET INCOME Revenues of $ 89 B with a net loss of $ -241 M in 2014 HISTORY Jeffrey Bezos launched Amazon.com in July 1995 SOURCES OF REVENUE Products (online retail with 79% / $ 70,080 M) and services (= 21% / $ 18,908 M) compuDng services, consumer electronics, digital content & adverDsing services DIVERSIFICATION Constant efforts to diversify by acquiring companies/start-ups and supported by high investments in R&D (e.g. IntegraDng the value chain by creaDng digital content provided online) CORPORATE STRATEGY Amazon at a glance ROE BREAKDOWN ROE -2.35% = NI Assets -241 47,332 -1% X Assets Equity 47,332 10,244 Main focus on strong growth above market average to gain market share rapidly since the company’s foundaDon. Focus on expansion esp. in Europe in 2016 (Example: + 2,500 employees, +3 R&D centers and + 10 warehouses in U.K.) 462.07% ESADE MBA - Class of 2017 - Section A - Group 8 3 1. Company Introduction 2. Industry Analysis 3. Financial Analysis - Profitability & Growth Analysis - Cash Flow & Cash Uses - Liquidity & Solvency 4. Outlook & Investment Recommendation ESADE MBA - Class of 2017 - Section...
Words: 1905 - Pages: 8
...AMAZON Team Digby Amazon Case Analysis Team Digby Team Digby very well done! Your covered all the salient issues, and support your positions very Overall, well. Heath Ashford Marshall University MGT 699 Dr. Sollosy 10/12/2014 David Caldwell Guodong Huang Josh Keck Yuyun Zhou 1 Amazon Case Analysis Contents Executive Summary .....................................................................................................................2 Introduction ................................................................................................................................2 Key Issues....................................................................................................................................2 Analysis .......................................................................................................................................3 Available Alternatives..................................................................................................................8 Recommendations ......................................................................................................................9 2 Amazon Case Analysis Executive Summary The purpose of this case analysis is to examine the way Amazon does business and determine areas where the company can improve and respond to emerging challenges. Amazon operates in the online shopping industry, an industry that is characterized by growing consumer acceptability, rapidly...
Words: 3811 - Pages: 16
...largest customer base over 30 million people. Besides selling books, Amazon diversifies itself by selling movies, electronics, toys, and groceries. Amazon also generates some of revenue from other marketing such as online advertising and credit card agreement. Amazon has organized systems in two segments, which are North America and International. Websites are also being individually focused for UK, Germany, France, Japan, Canada, China, and Italy. Other than those countries, Amazon also provides them internationally shipping for some products. Amazon succeeds in its online business, and gains more net incomes than some competitor on ground such as Barnes and Noble, and Borders. Amazon’s e-business strategy is a combination of products. The company started with online books then other products to gain customers in a wide range. However, offering a large product variety, Amazon has still maintained its strong brand. 1. Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently. Amazon plays strategy planning on the growth and diversification which objects to provide a “One Stop Shopping” for its customers. Amazon serves customers through the website focusing on selection, price, and convenience. There are million of unique products across 12 categories to be sold by Amazon and third parties. Amazon also manufactures and sells the Kindle E-book, which so far is the...
Words: 1091 - Pages: 5
...Crafting & Executing Strategy the Quest for Competitive Advantage The Amazon Company Table of Contents * Introduction……………………………………………P.3 * Background Information………………………………P.3 * Senior Management……………………………………P.8 * Competitors……………………………………………P.8 * Marketing Strategy……………………………………P.9 * Problems and Issues confronting the Company………P.10 * Recommendation……………………………………..P.10 * SWOT Analysis……………………………………….P.10 * Financial Ratios and Analysis………………………..P.11 Introduction Surviving the dot com boom was a significant accomplishment for Amazon, which helped them claim the title of being the one stop shopping retailer for all. Amazon was introduced to the public in 1995 from Seattle Washington. Some people may remember Amazon as an online bookstore. Over the years, they evolved into the most popular internet retailer in the world and Amazon quickly became the growing trend among consumers, because they are convenient, have a speedy service, low prices and quality. Using third party sources, Amazon has diversified their portfolios and continues to offer consumers new products (LexisNexis, Academic). Reinventing their strategy to adapt to consumers’ growing needs and the source of must have items; Amazon will continue to survive the world of internet retail. Background Information Amazon is the pioneer of online retailing. It started out as an online bookstore, offering a limited amount of selections. They expanded...
Words: 3102 - Pages: 13
...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...
Words: 2727 - Pages: 11
...3. Identify the prominent features of the company’s current business and functional strategies, and consider attack strategy from competitor. What would be Best buy strategy to retaliate? In the traditional retail sector, Best Buy has previously largely squeezed other electronics warehouse-superstores out of the business (or left them as a shell of their former self), with the exception of some regional retailers such as HH Gregg, or Fry’s Electronics. In addition to competing with these smaller chains, Best Buy continues to compete in the consumer electronics retail sector with companies such as Staples and Office Depot, which offer a small selection (compared to Best Buy) of competitively priced electronics and accessories. Other competitors, particularly in the areas of laptop computers and televisions, include retailers such as Costco and Wal-Mart (Funding Universe). However, all brick and mortar retailers are facing increasing pressures from online retailers, which given their comparably lower operating costs, can accept much lower profit margins on each item that they sell. Amazon is by far the most formidable player in this market, given that it has assembled a massive global network of highly automated warehouses, acquired successful online retailers like Zappos and Woot!, has struck deals with parcel carriers to offer 2-day and overnight shipping at very low prices, and cultivated a reputation for offering products at low prices with particularly lenient and understanding...
Words: 1204 - Pages: 5
...changing its big-box sales style, however, with changes in technology and the retail environment itself, Best Buy is experiencing a stagnation in sales. This report will review the case study and tactics of Best Buy, and in particular, the strengths of this electronics retailer as well as the threats that have emerged that endanger its financial well-being. From the information provided in this case, defensive and offensive plans of action will be suggested and analyzed in order for Best Buy to remain competitive in this industry. By utilizing both types of these recommendations, Best Buy will be able to lower its expenses, increase its revenues, and maintain its current market share as well as attracting new customers in order to achieve the growth the firm once saw. Issue at Hand In a changing electronics retail environment, how can Best Buy survive financially and remain profitable? Internal Recommendations One aspect of BB’s business that is doing well is the creation of Best Buy Mobile and the ability of consumers to choose between multiple carriers at a single location with an even lower priced subsidized phone. With the advent of technology and availability of internet access on smart phones, the technological landscape is changing and consumers want, or believe they need, a cell phone. More Best Buy Mobile stores should be launched internationally, offering a choice of carriers available in that particular country. The growth potential for mobile phone sales...
Words: 1666 - Pages: 7
...Amazon Inc. SeifAllah Marzouk – Ahmed Fadel – Mohamed Hajaij Introduction Amazon is the global leader in ecommerce. It directly sells a huge range of diverse products. Ranging from books to music to other physical goods and, their specialized asset, Kindle e-book. The company attains their high value-added differentiation by customer-focused information services such as holding online customers’ preferences and providing customization. One of the main competitive advantages of the company is unique bundling of several recourses such as service and distribution. Amazon was initially an online bookseller that directly shipped orders to customers; however, the company grew substantially and soon established a distribution network through which it could ship millions of items to customers all over the world at the lowest costs possible. Operating 10 websites in more than 45 countries now gives Amazon a strategic advantage in its diversity. Amazon was founded in 1994 in the state of Washington DC, USA. It strategically competes internationally by attaining the lowest prices amongst its competitors. With regards to book selling, Amazon’s biggest competitor is Barnes and Noble. While Barnes and Noble enjoys the spoils of selling in the physical world and online, Amazon is stuck in the cyber world (which evidently keeps costs down but doesn’t help with the sales)...
Words: 1297 - Pages: 6
