|Founded||July 5, 1994; 26 years ago|
Bellevue, Washington, U.S.
|Headquarters||Seattle, Washington U.S|
|Products||Echo, Fire Tablet, Fire TV, Fire OS, Kindle|
|Services||Amazon.com, Amazon Alexa, Amazon Appstore, Amazon Music, Amazon Prime, Amazon Prime Video, Amazon Web Services|
As you already know, that Amazon is the largest e-commerce company in the world!
But,What some of you might not know, is the amazon started as an online book retailer,in 1995.
By founder Jeff Bezos, in his home in Washington USA.
What started as a small online book website soon became one of the biggest retailers in the world.
For better understanding i will divided this case study in four parts and they are-
- How Amazon become the everything store after starting as an online bookseller?
- What features of amazon’s supply chain, management face challenges in the global scenario?
- Can e-commerce ever truly replace the in-person shopping experience?
- What are amazon’s implications in the retail industry?
1. How Amazon become the everything store after starting as an online bookseller?
Amazon has now become one of the biggest inspirat.
And an epitome of exemplary success for business owners around the world.
Jeff envisioned since the beginning at amazon world become a place where everything would be available.
However, the initial foundation was cleverly built, by selling books online.
As it had significant appeal amongst customers, And was easy to ship.
Jeff initially wanted to give a magical name to the company.
And chose the world ‘cadabra‘.
Which was quickly dropped.
Due to its similarity with the word “cadaver’.
And then the name ‘Amazon’ was chosen,
After the largest river in the world.
Which can even be seen in the early logo of the company.
The research and development of amazon has placed a crucial in its success.
Amazon spent a total of $35.931 Billion on their research and development division in 2019
Amazon web services, alexa, prime pantry,Amazon fresh, prime now and prime music.
all they are some of the significant innovations that have helped Amazon climb to its success.
On June 18th, 2014 amazon launched its first own smartphone called ‘The fire phone’.
The device was aimed at integrating various media streaming options.
However, the venture failed miserably and resulted in a whopping $180 million loss.
In augest 2014, Amazon acquired twitch for a staggering $970 million.
The integration of this video live streaming website, to the game production division enhanced the amazon web services.
One thing amozon focused on since the begining was,
Ensuring that its supply chain management was best in class,
Amazon has profited over $100 billion in the last 20 years.
owing to its excellent supply chain management.
In the initial period of the company, Jeff bezos had no concept of “work-life-balance”
And employees would work tirelessly for months, to ensure that each met its schedule.
Employees would even sleep in their cars.
And then come to work again in the morning because of the large number of orders.
Jeff has his way of dealing with escalations from dis-satisfied consumers.
Customers can directly send an email to the CEO,
Who will then forward it ;as is; to the person in charge with an addition of a question mark’?’.
When an amazon employee receives this question mark ‘?’ from the CEO himself,
They have only got a few hours to rectify whatever issue there is.
and come up with a though explanation of the problem.
Now, this explanation will be analysed by a series of managers and supervisors
Before reaching Jeff bezos himself.
this is the bezos way of addressing customer escalation,
And symbol is now known as the ‘bezos question mark’ among the amazon employees.
Through the integration of innovative solutions,
Amazon has ensured to maintain the fastest delivery in the industry,
Putting the competitors under immense pressure.
The introduction of the Amazon prime delivery services another breakthrough in the industry
As it promises within two days.
Amazon’s strategy of outsourcing inventory management to third-party services
Providers and in-sourcing logistics was yet another clever move by the company.
Amazon has acquired significant position among the customers and the market.
Through up to date it services, intact networking of the warehouse, multifaceted inventory management, and effective transportation services.
Amazon is set to introduce the amazon prime air service to its arsenal.
It is a drone – based delivery system, which plans to deliver orders under 5 pounds.
To customers under 30 minutes within a proximity of 10 miles.
This will put amazon way ahead of the league of its competitors.
2. What features of amazon’s supply chain, Management face challenges in the global scenario?
The supply chain management is the core of this amazon case study.
The supply chain team of amazon undergoes continuous morning and scrutiny to prevent any sort of customer dissatisfaction.
However, the company has been facing some challenges in its international business section.
As compared to the national sales across the USA.
Amazon’s presence currently span across 58 countries and reaches a population of 1.2 billion people.
Even so, Amazon is having trouble competing with other delivery abroad and penetrating new markets.
Their international sales were only up by 9% in the first quarter of 2019.
Whereas it was an impressive 19% in the previous quarter.
This can be attributed to the political shifts and the competition faced by amazon overseas.
As countries like china and our country (INDIA) both have tremendous prospects for e-commerce.
Amazon could expect significant profit returns from these countries.
However, amazon has faced competition in china from companies like Alibaba and JD.com
Which are one of the most significant e-commerce companies there.
Whereas the new laws in India which favors the domestic companies present a problem in front of amazon.
Besides, Amazon also faces a threat as Walmart recently acquired, flipchart,
Which is one of the biggest e-commerce platforms in India.
One of the key factors behind this decrease in amazon’s drop in international sales-
Is excessive emphasis on the topographical context.
The core of amazon’s supply chain is to cover closer geographical areas.
When expanding to global proximities,
Amazon’s services experience difficulty in moving beyond the local areas
Because of its dependency on small retailers.
3. Can e-commerce ever truly replace the in-person shopping experience?
Amazon focuses on small sellers and manufacture by linking them to a vast client base and their fulfilment program.
The small business can utilize the services provided by amazon
And exhibit their products on a larger platform to attract more customers.
Amazon also provides its ‘fulfilment by amazon’ services,
Under which they take care of the packaging,, warehousing and shipping operations.
Now, this brings us back to the question
‘Can e-commerce ever truly replace the in-person shopping experience?’
well, on the one hand, where, online shopping and e-commerce website bring a world of options to your fingertips
They also deprive you of the emotion you go through while you look for the iteam which truly satisfies your chexklist.
Where online shopping most of the time requires you to pay the shipping and delivery charges.
This sum of money would be comparable to that you would spend on gas and parking while going to the store.
There’s no denying that a particular factor of personal preference comes into play here,
Is also definitive proof that e- commerce and online shopping has made our lives much-much simpler.
But even the major e-commerce giants understand the appeal of a traditional store.
This is why amazon has started with its very own pop-up store.
For pushing its kindle device into the market by bringing the gap between online shopping and traditional shopping.
Therefore, it can be concluded that there is less probability
That e-commerce will ever truly replace the in-person shopping experience.
However, it has still had a significant effect on it,
As more and more people are opting to order their products of choice from the comfort of their homes.
To tackle this obstacle, traditional retail store owners must look for an omni-channel strategy.
To address the changing expectations of the consumers and address both variables.
4. What are amazon’s implications in the retail industry?
In addition to the advantages provided by the e-commerce industry to the customers,
Online shopping has significantly changed the whole retail scenario.
Amazon, in particular, has had a drastic effect on the brick and mortar stores.
Through their attractive services, such as fast shipping, free returns, low price, discounts, ease of access, and other impressive services like prime etc.
Amazon had increased customer expectations.
This had made it tough for traditional retailers to compete with them.
These changes and implications have been termed as the ‘Amazon Effect’
This amazon effect has caused all of its completion to come up with new ways to keep their market share and increased revenue.
There have been several instances that showcase the changing competitive landscape due to amazon effect.
For example sears, a famous American department store chain, ignored the changes in expectations of the customers, with the rise of amazon,
And suffered a significant loss.
In contrast, one other American retail store, Kroger food and drugs sensed the shifts and adopted innovative changes in its operations.
Such as including technological infrastructure an omni- channel prese with customers purchase history.
and thus following in the footsteps of amazon to offer its customers, personalized shopping services.
Even the retail giants such as Walmart had introduced a two- day delivery service on purchase above 35$ to keep up with Amazon.
besides, Amazon has booted the pace of innovation in the retail industry.
As supply chain management and the logistics are the strongest qualities of amazon.
Many companies are now looking to enhance their software- based shipping services,
In addition to brining focus on driving sales through mobile
Users and applications, and incorporating AI-based cloud computing services to compete with amazon’s Alexa and web services.
Amazon’s unique supply chain strategies and continues technological innovations have already changed the way supply chain management works.
Their acquisition of whole foods is another bold declaration of its move into brick and mortar, further emphasizing the convergence of traditional retail and e-commerce strategies.
Amazon is already far out of reach of most of its competitors.
With impending advances in robotics, drones, and other autonomous vehicles, one can only guess what the future holds for Amazon.
So here is a Question for you What you learn from this blog Comment Down below.
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