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What Is Amazon’s Business and What Factors Are Critical to Its Success?

Autor:   •  November 6, 2016  •  Case Study  •  1,225 Words (5 Pages)  •  1,654 Views

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Assignment Questions:  

  1. What is Amazon’s business and what factors are critical to its success? [list or table]

Amazon’s Businesses

Critical Success Factors

Online Retailer

Easy to find product catalog

Competitive price

Free-shipping (Prime)/Shipping globally

Operating fulfillment center with huge inventories

Personalize the Web experience for its customers

Excellent customer services & return policies

Innovation

Back-end Fulfillment Services

Back-end fulfillment services for other global retailers

Low inventory cost

Using high technologies

Excellent customer services & return policies

Cloud Computing Services

Cost effective IT services

More convenience for customer to store and share information

Developed own methods & built Web-enabled information systems

Collecting and using information to run the business

Innovation

Supply Chain Management (SCM) systems

Service the eCommerce business needs of other retailers

High efficiency

Large automated & fulfillment centers with huge inventories

Disintermediate the retail process

  1. What challenges did Amazon face when it first entered the marketplace? [list]
  1. Startling by losses and lots of red ink
  2. Facing big & strong competitors
  3. People were not familiar with shopping over the web
  4. Huge infusion of capital needed for fulfillment services
  5. Building its own web-enabled information systems for scratch
  6. Developing new methods of payment
  7. IT acquisitions
  1. What information is required by Amazon to transact, to manage, and to innovate? [table]

Level of Information Processing

Information Needs

Transacting

Customer information

Product information (location)

Payment information

Shipping information

Customer registration

Return requirement

Management and control

Time takes to fill individual orders

The flow & turnover rate of inventory

Time & steps involved in filling individual orders

Worker error rates

Associated cost of operations data

Fulfillment process staffing requirement

Level of customer returns

Employee performance & training

Innovation and corporate learning

Back-end fulfillment services

Enterprise information management

Performance levels of products & supplier

Competitor performance

Supply chain management system

...

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