CASE STUDY AMAZON.
AMAZON
COMPANY
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Table of Content GROUP 1
Background Amazon customer service
Line of business The process Teaching notes
Business model Supply chain strategy Summary
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About Us
Sun Ny
Ái Vi
Quốc Bảo
Quang Huy
Anh Thọ
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Background
Amazon was started in 1994 by Jeff Bezos as an e-commerce
corporation. With $149.2 billion in net sales in 2022, it's the top US e-
retailer. Amazon has 300+ million active consumer accounts globally. In
2023, Amazon.com is a top 13 visited website. They sell various
consumer items online, including books, electronics, apparel, and food.
Amazon now offers logistics services like Amazon Go, Prime, and Flex.
They also provide virtual products like streaming, e-books, gift cards,
cloud storage, and web services. Mechanical Turk is their crowdsourcing
labor site.
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LINES OF BUSINESS
How Amazon revolutionized online shopping with
Online
its vast product catalog and efficient delivery
retail
systems.
How AWS offers a comprehensive suite of cloud
Internet
Services computing services to individuals, businesses, and
government organizations
Kindle How the Kindle platform has transformed the way
Ecosystem people consume books and other digital content
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Online Retail
Started as an online bookstore in 1995 and became
the largest e-commerce retailer globally
Sells many products online, such as electronics, clothing, home
goods, and books
Offers features and services like customer reviews, personalized
recommendations, and convenient payment options
Internet Services GROUP 1
Launched in 2006 as a division of Amazon that
provides cloud infrastructure and solutions
Offers services like storage, computing power, database
management, machine learning, and more
Has gained widespread adoption globally and is a preferred
choice for various industries
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Kindle Ecosystem
Introduced the Kindle e-reader in
2007, revolutionizing the digital
reading experience
Includes a wide range of Provides features like adjustable
digital content, such as e- lighting, long battery life, and
books, audiobooks, and access to a vast library of digital
magazines content
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Amazon Prime
A subscription-based service that offers benefits like
free shipping, streaming services, and exclusive
Additional
deals
Amazon Echo and Alexa
Smart speakers and virtual assistant technology that allow
Products and users to control their smart homes, play music, get weather
updates, and perform tasks using voice commands
Services
Amazon Fresh and Whole Foods
Grocery delivery and pickup services that offer fresh
and organic products to customers
Amazon Studios and Prime Video
Film and television production and distribution
services that create original and exclusive content
for Prime members
Business
model
4 types:
Value model
Technological model
Distribution model
Financial model
www.reallygreatsite.com
Value model
Value is defined as a model heavily stressing
on things, people and connection. Amazon
build their value by :
a.Wide range product
b. Reasonable price
c. Customers experiment
Technological model
APPLIED MODERN TECHNOLOGY ON SEVERAL
PARTS OF THE COMPANY SUCH AS
Supply chain management
E-commerce platform
Recommendation engine
Cloud computing
www.reallygreatsite.com
Distribution model
Third-party sellers
Market places
Global delivery infrastructure
Fulfillment network
Financial model
Cloud service
Product sale
Third-party fee
Subscription service
CUSTOMER SERVICE
Amazon approaches the customer segment in the form of
Online
Amazon must compete with regard to product availability,
product range, timeliness, and shipping and handling to return.
Identify five factors affecting shopping patterns in online stores
is essential:
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CUSTOMER SERVICE
ACCESSIBILITY
Such as time/space flexibility, product and brand availability
Continuously expand
A wide range the market and
optimize costs to meet
of product the diverse shopping
needs of customers
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CUSTOMER SERVICE
SEARCHING
Focusing on user-friendly aspects of the site
Amazon's website The service
has relatively fast provides two
page speeds thanks
global static public
to the use of the AWS
IP addresses
global accelerator
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CUSTOMER SERVICE
SEARCHING
Focusing on user-friendly aspects of the site
Be able to react more
Amazon's website has quickly to changing
The service provides two
relatively fast page speeds customer needs, which
global static public IP
thanks to the use of the AWS allows the company to
addresses
global accelerator forecast its numbers more
accurately
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CUSTOMER SERVICE
REVIEWING
Comprising product information, classification
When evaluating product
information on Amazon,
customers rely on a variety of Customer "Best Sellers"
sources such as product
descriptions, customer
Review category
reviews, ratings, and images
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CUSTOMER SERVICE
TRANSACTIONS
Amazon Pay Paypal
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CUSTOMER SERVICE
OWNERSHIP
On-time Quality
delivery Assurance
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PRICE ADJUSTMENT STRATEGY
STRATEGY 1
Repricing
STRATEGY 2
Stable pricing with different rates
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PRICE ADJUSTMENT STRATEGY
STRATEGY 3
Value-based pricing
E. SUPPLY CHAIN STRATEGY
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INVENTORY MANAGEMENT
Amazon warehouses are so technologically advanced
Delivery is usually done through other intermediaries
Amazon has used a distribution network model
Amazon also uses advanced warehouse management principles and sophisticated IT capabilities to
reduce shipping center costs
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LOGISTIC BEHIND
Warehousing
Delivering
Fulfillment
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Warehousing
110 facilities globally, including 64 in the United States
Wide range of products such as home items, footwear,
apparel, literature, gadgets , ETC...
Placed in areas with high client accessibility and
consumption rates or easy access
Prominent technology
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Delivering
Three major stage
Replenishing Entails order
Delivering
item fulfillment
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Delivering
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Delivering
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Delivering
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Delivering
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Fulfillment
Emitted 44.4 billion tons of carbon into the
atmosphere in 2018 (Amazon, 2019; Shieber, 2019)
Green Fulfillment
Fulfillment by Amazon (FBA)
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Information technology
Amazon's business strategy consists of investing in technology, improving its logistics
applications, boosting its web services through fulfillment capacity, M&A strategy,
logistics R&D activities, experimenting with Fintech, and securing its discoveries
through patents.
"We've changed the automation, the size, the scale many times, and we're still learning and
growing there." - Amazon's CFO, Brian Olsavsky.
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Information technology
Replacing people with AI may appear appealing, but it is also likely to be a mistake.
Amazon's "hands off the wheel" program could serve as an example for how businesses
can use AI to automate repetitive tasks while keeping staff on the payroll by
transferring them to more creative areas where they can offer more value to the firm.
Amazon's anticipatory shipping is another unique strategic technique that it just
trademarked in 2014 that might further reduce delivery and lead time. This
system allows Amazon to deliver products to customers before they even plan to
order.
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Information technology
Amazon is extremely popular because it excels at three things:
1. It delivers the ease of a practically one-stop shopping experience from the
comfort of your own home;
2. It remembers what you bought and when you bought it
3. It recommends additional products based on your purchasing history.
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Information technology
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Information technology
1. Amazon secret plan:
According to a 2013 study to Amazon's
senior management team, the company's
Fulfillment By Amazon service, which
provides warehousing, packaging, and
shipping to independent merchants so
they can sell products on their own
website, should be drastically expanded
globally.
The Dragon Boat project is underway.
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Information technology
2. Swelling Industries:
Amazon's efforts will culminate in the establishment of a new company dubbed
"Amazon's Global Supply Chain." Amazon's new venture will put it at the center of a
logistics industry that includes not only shippers like FedEx and UPS.
Merchants will be able to place orders online or via mobile devices, allowing Amazon to
provide "one-click for seamless international commerce and shipping."
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Information technology
3. Ease and Transparency:
Amazon's huge ambition may be observed in its desire to dominate the cross-border e-
commerce market and force Alibaba out of the shipping partners' game, thereby
monopolizing the whole supply chain.
Amazon has discreetly undertaken a significant scheme that has gone unnoticed. This
plan reflects the company's in-house development of cloud services, which has
progressively expanded into a commercial operation that is today Amazon's fastest-
growing and most profitable segment.
F. TEACHING NOTES
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Q1: Were Amazon’s diversifications through Amazon Go and
Amazon Elements appropriate, given the company’s
resources and capabilities? Were such diversifications risky
strategic moves?
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Q2: Can Amazon reproduce its online retail success in offline
retail segments? Will it be able to become one of the
biggest offline retail payers?
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Q3: As the first mover in its shopping technology, Will
Amazon Go be able to succeed in the long term?
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Q4: Being the first mover "checkout-free" convenience
store, how can Amazon maintain its competitive advantages
in the long term? How can Amazon avoid failures such as a
diaper brand it introduced in 2014 and make Amazon
Elements successful? How should Amazon differentiate the
products it offers via Amazon Elements from the products of
other suppliers on its platforms?
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Q5: Could Amazon’s offline retail marketing concept be
developed globally?
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Q6: Was Jeff Bezos the right person to lead the company in
facing the challenges of new offline retail ventures?
G. REFERENCES
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Thank You
