Amazon
Leading the Way
Leslie
K. Penny
Module
7- Research Library Assignment
Chancellor
University
Abstract
The following essay
provides an in depth look at Amazon.com and how the business is able to provide
for the consumer in a manner that keeps it ahead of the competition. This essay talks about decisions that are
made at Amazon that are common to manufacturing and service firms. It also references Amazon's supply chain and
how Amazon is able to make a profit. Examples
are provided as to how Amazon operations allow it to offer a high-quality
shopping experience and how Amazons operations contribute to high productivity.
Amazon
Leading the Way
If you were to ask random people on a busy sidewalk if
they knew what Amazon was, they would all have an answer. The odds of an individual not knowing what
Amazon is, is slim to none. Everyone
would have their opinions of what they think Amazon.com consists of such as it
is an online mall that gives access for vendors to sell their goods in one
spot; it is a retailer that sells goods that are stocked and shipped; it is a brand
name representing the standard for online shopping where a person can research
the item they are looking for and purchase it at the same site also considered
a destination site. In a nutshell,
Amazon is one stop shop site with products ranging from books to garden
supplies, "couture retailing and feature-film production to Ipad-worthy
table manufacturing, even ultra cheap database software for businesses" (Lashinsky, 2012).
You name it, you can find it on Amazon.com
The CEO of Amazon , Jeff Bezos, and his managers make
important decisions that are common to manufacturing firms as well as service
firms. One of their main visions that
utilizes the advancement of technology is their focus on the customer (Chaffey, 2012). Amazon is relentless in their focus on the
experience of their customers by offering reasonable prices, the convenience of
buying from home with their one click option as well as a large selection of
merchandise (Chaffey, 2012).
In essence Amazon decision making process surround the needs of their
customers.
Amazon outsources products to offer the consumer
variety. The company has a feedback
program which made it "one of the first online retailers to let customers
post online product reviews, which not only boost sales but also contribute to
a sense of community among users" (Griffin, 2012).
Amazon also lets 3P sellers, which is a third party marketplace that
stocks the shelves, creates price competition and frees Amazon's cash to be
invested elsewhere, to use Amazon's fulfillment center (Wingo, 2013) This program "allows 3P sellers access
to the Amazon Prime program which we estimate is 10% of Amazon's customer base
(approx 20m), but they spend 4x the average-so Prime represents about 40% of
the Amazon wallet" (Lashinsky, 2012). Amazon also offers a free shipping program to
its consumers by using funds that would have went towards marketing and instead
puts every dime into lowering shipping costs that would drive more deals (Wingo, 2013)
and uses capacity decisions which "involves choosing the amount of
products, services, or both, that can be produced by the organization (Griffin, 2012).
Bezos isn't your typical sheep business man. He thinks outside the box and does things his
own way ignoring those such as Wall Street who would prefer to have consistent
earnings growth (Lashinsky, 2012). Bezos makes decisions with "clear
thinking and a cohesive vision" (Lashinsky, 2012).
Bezos doesn't mind taking risks and losing money, and surprisingly,
"investors have embraced him, pushing Amazon's stock up 30% so far"
in the year 2012 (Lashinsky, 2012).
Because of Bezos drive and fervent need for customers to have a good
experience, he was named 2012 Businessperson of the year by Fortune (Lashinsky, 2012).
Amazon has a well based operations management offering
quality and productivity that its competition finds hard to beat. Amazon determines its product-service mix
based on the demands of the consumer by adding width, "a measure of how
many different types of products the organization offers" (Handlin,
2013),
adding depth, "the number of distinct items in a product line" (Handlin,
2013),
positioning, which "refers to people's perceptions of a brand, an
individual product or a product mix" and product characteristics,
"the value of an organization's product mix to its customers is often
centered on three product characteristics: quality, functionality and
style" (Handlin, 2013).
To conclude, Amazon, or I should say the CEO and his executives,
make decisions based solely on the happiness of the consumer. If we, as consumers, are not happy then we
take our business elsewhere and if anybody understands that logic better, its
Jeff Bezos. He uses decisions that are
common to manufacturing and service firms as well as his own innovative ideas. Amazon provides a high-quality experience due
to its one stop shopping service, the vast array of merchandise (huge supply
chain) and services and the fact it can ship roughly 10 million products with
same-day, second-day and other fulfillment shipping options. Amazon has an excellent return policy and its
ability to let consumers provide feedback and read others reviews. The list can go on and on, Amazon has that
many pros. And with a man such as Bezos
running the show, it will only grow and find more ways to bring in
customers.
Works Cited
Chaffey, D. (2012, January 16). Smart Insights:
Sharing Advice for Better Marketing. Retrieved February 24, 2013, from
Amazon.com Case Study:
http://www.smartinsights.com/digital-marketing-strategy/online-business-revenue-models/amazon-case-study/
Griffin, R. W. (2012).
Fundamentals of Management. Boston: Houghton Mifflin Company.
Handlin, A. (2013). eHow
Money. Retrieved February 24, 2013, from How a Product Mix can be Used to
Enhance the Value of a Customer Organization: http://www.ehow.com/info_8467116_product-enhance-value-customer-organization.html
Lashinsky, A. (2012,
November 16). Amazon's Jeff Bezos: The Ultimate Disruptor. Retrieved February 24, 2013, from CNN Money:
http://management.fortune.cnn.com/2012/11/16/jeff-bezos-amazon/
Wingo, S. (2013, February 21). ChannelAdvisor Blog. Retrieved February 24, 2013, from
Part III/III: Amazon's Q4 Results: Under the Hood of Amazon's Fulfillment
Center Network: http://www.amazonstrategies.com/
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