...experience can also be enjoyed on Dangdang.com, which is the largest online book store in China. However, there are a lot of differences include homepage layout, logistics system, search technique, and special service. After comparing, I think I absolutely choose to use Amazon.com. In terms of homepage layout, there are a lot of discrepancies owing to different styles and positioning of company. Amazon focuses on middle and upscale customers, while Dangdang pander to low and middle-class customers. In addition, Amazon’s main products include books, electronics, kindle(star product), etc. But for Dangdang, even though it started as a online book store, it has been positioned as a online shopping mall since 2010, just like Alibaba Group's Taobao, which is China's largest Internet retail platform. Both of them include numerous goods. Dangdang is not a specialist in a specific field anymore. Because of the reasons I mentioned above, Amazon’s homepage is much more clear and well-organized. This point exerts tremendous positive effects on customers’ satisfaction. In addition, logistics system is crucial for a e-business. Amazon China, formerly Joyo.com is a Chinese shopping website located in Beijing. In 2004, it was acquired by Amazon.com. Why did Amazon choose Joyo.com? Because it has a sophisticated and mature logistic system. Amazon was dedicated to build warehouses all over the world, for example, in China, they build warehouses in Beijing, Shanghai, Guangzhou, and so on. In...
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...segmentation strategies, order sourcing decisions, overall replenishment and fulfillment process flows, intra-warehouse process flows, and transportation policies. This report analyzes the overall Amazon.com supply chain for United States distribution with a specific emphasis on the Media product segment. Amazon.com US Retail Product Segment Books, CDs, and DVDs and magazine subscriptions comprise the media product line at Amazon.com (Amazon.com 2002 Annual Report). Amazon.com began as an online bookseller and its first product line expansions were music and movies. As a result, the Media segment comprises a large percentage of Amazon.com overall revenues. In 2004, Media accounts for 74% of all revenues. Within the US, the Media segment accounts for 67% of all revenues. In dollar terms, the Media segment in the US generated $2.6 billion in revenue in 2004, compared 115 to $3.8 billion generated across all segments in the US (Amazon.com 2004 10-K Report). The pie chart below shows the breakout of revenue percentages by product and service segment. Fig Amazon.com does not provide margin numbers by product segment, so the Media contribution to profit is unknown. JP Morgan estimates that Amazon.com gets 25% gross margins for books and media and 15% for electronics ("US Equity Research: Amazon.com", 2005). Additionally, data regarding important financial metrics such as inventory turnover, free cash flow, and...
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...Subject: E-logistics and International Supply Chain Management. Topic: How to use internet to support logistic activities? Abstract: Now a day’s, many companies are adopting the usage of internet technologies to improve the effectiveness of the logistic activities. This paper aims to investigate the use of internet technologies at Amazon and how it manages its logistic activities. Keywords: Internet, logistic activities, E-logistics, E-commerce. Introduction: Internet connects entities to global market place. It is a computer to computer communication. The use of internet affects the success of the companies and help in developing e-logistic activities. It has a major impact on information exchange of the companies has it acts as a communication channel with which business transactions are made fast. The growing application of Internet-based systems like Enterprise Resource Planning (e-ERP); Maintenance, Repair and Operations (e-MRO); Materials Requirements Planning (e-MRP); Electronic Data Interchange (e-EDI); e-procurement and e-auctions in various parts of the world has shown that the Internet can help to provide efficiency in supply chain activities to improve the competitiveness of the companies involved (Bendoly and Schoenherr (2005); Davila et al.,(2003); Hartley et al.,(2004); Kheng and Al-Hawamdeh (2002); Muffatto and Payaro (2004); Paterson (2005); Presutti (2003); Puschmann and Alt (2005); Singer (2003); and Yang et al.,(2007)). Amazon.com: Amazon was...
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...Amazon.com's New Business Portfolio Being Launched Mark Vasquez Park University Amazon.com's New Business Portfolio Being Launched I. Describe the portfolio of new business services being launched by Amazon.com Amazon has mastered the logistical and technological facets of successfully running itself. Amazon.com has thrived in a highly competitive retail atmosphere. Amazon.com now seeks to expand its enterprises by offering its own resources, retail expertise, business enhancements, technological tools and highly advanced features to other businesses for a price. The incentive for these businesses to purchase Amazon.com’s services is so that they are able to streamline their own processes and become more efficient and ultimately more profitable. Amazon.com seeks to appeal to prospective clients by offering them services that will enable them to operate in a more seamless manner. Essentially Amazon.com is selling various “easy buttons” for the many “chores” of running a business. Outside companies would be able to Amazon.com’s operational systems to efficiently distribute their products, use their warehouse space for storage, calculate and analyze statistical information, store data, and utilize Amazon.com’s platform to access the media. Critics are skeptical of Amazon.com’s expansion plan because the cost of purchasing the technology needed is a significant expense. In addition to this, hiring tech professionals to develop, hone and run these new services is another financial...
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...1. Case 1-2: Amazon.com: The Brink of Bankruptcy 1.1. How did the Amazon.com business model evolve from the company’s launch in 1995 to early 2001? 2.1.1. Product-Market Enhancements: Amazon.com launched as an online bookstore in a garage by Jeff Bezos in 1995. In order to be close to one of the largest book distributors he chose Seattle as the location. In 1996, they focused on enhancing its product and service offerings and capabilities. Amazon.com offered powerful search capabilities as well as recommendation center. In addition, and to enhance the online shopping experience they created shopping carts, 1-Click shopping, wish lists and greeting cards. By early 1997, the company went public and their revenues increased by $ 16 million. 2.1.2. Product Expansions: In1998, the company expanded to new products. Thus, Amazon.com enters the online music and video business. By late 1998, the firm expanded into selling toy, kitchen, and home stores. In 1999 the firm expanded marketplace business model with equity partnerships with leading online retailers. 2.1.3. Market Expansions: Between 1998 and 1999, the company expanded into international markets and entered Europe. Thus, they sold products in over160 countries by early 2001. Amazon.com had expanded from online bookstore into an online superstore. 2.1.4. Business Explorations: In 1999, Amazon.com launched new business models including Z- stores and auctions. Thus, the firm provided the software and service but...
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...Business Information Systems BIS/219 August 17, 2010 Xuan Yu In this team paper we will be discussing the strategies of Amazon.com to see whether the Internet icon is moving away from being the number one leader online. We will be showing different areas to see if Amazon.com is using the right strategy to compete with Google and Microsoft. We find the different issues concerning the database and data management with Amazon.com. Finally we will be discussing the uses of e-business and e-commerce for the B2B and B2c. As of January 2010, Amazon.com was considered the largest online retailer in the United States. Amazon was launched in 1995 by its founder Jeff Benzo. Benzo’s original idea was to create an online bookstore. Compared to traditional bookstores or even mail-order systems, an online retailer could carry a far greater quantity of books for sale. Just like most businesses, even the traditional bookstores, Amazon expanded its business past just books and began adding an array of items; ultimately making its way to selling almost anything possible. Stockholders of Amazon.com, knew the turn over would be a rather slow process with the gradual growth of online sales, but none-the-less they would expect a profit. It took Amazon until its fourth year to produce any revenue and finally to hold its ground as an online retailer. This slow progress made Amazon move away from its original concept...
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...| Electronic Commerce | HOW AMAZON.COM FULFILLS ORDERS (CHAPTER 11, P580) 1. Executive summary With the brick – and – mortar or e – commerce (EC) companies, when they provide to customers goods and services, the problems of “How to fulfill orders?” always are difficult things that caused headaches for managers. As we known, order fulfillment is a main EC support service along with security, payments, infrastructure and technology. So, in this paper, we will see how the world’s largest e – tailer like Amazon resolve its problems related to enhancement productivity of order fulfillment. 2. Case summary The Problem With traditional retailing, the problem is not enough delivery destinations to ship large quantities of goods. With e – tailing, the maintaining an inventory of items is necessary to fill customer’s needs immediately, so this leads to the problem of maintaining and shipping products cost. When Amazon.com launched in 1995, it was a book online retailing with “virtual retailing” business model, it operated as an intermediary; it took order from customers and received payments, and then let others fill the orders. However, this model would not work for the large e – tailer. The Solution Firstly, Amazon changed their business model from no warehouse, no inventory, and no shipments to handling its own inventory and logistics. They spent $2 billion to build warehouse and outsourced the shipment to UPS and USPS. Secondly, to fulfill many millions of orders...
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...1. Introduction Amazon.com, Inc. (AMZN) is an e-commerce company founded in 1994 by Jeff Bezos, a former vice-president of a Wall Street firm and also a graduate from Princeton University. The company is currently the largest online retailer in the US and also the world’s biggest retailer by market value. Under the leadership of Jeff Bezos, the company that started as a website that sold only books, Amazon.com would eventually grow to become a retailer that sells over 200 million products, categorised into 35 departments. The company is now seen as one of the most innovative and valuable brands in the world. (Forbes, 2015) 2. Measurement of Amazon.com Success For a business, the best way of measuring success would be to analyse the company’s financial status. Profitability might be the most important measurement of corporate success as it greatly affects the organisation’s competiveness and continuance of the organisation. But in this age of doing business, companies can no longer measure themselves based only on financial perspective. For this report, we will take a more qualitative view and also track the company’s non-financial measures such as brand image, market share, customer satisfaction and employee satisfaction to better analyse the success of Amazon.com. 2.1 The Balanced Scorecard Balanced scorecard methodology is an analysis technique designed to translate an organization's mission statement and overall business strategy into specific, quantifiable goals...
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...Amazon.com the Hidden Empire Three digital engines to reshape and dominate retail Amazon.com: a digital shop around the corner… … and a digital colossus. Did you know: all these companies belong to Amazon… Did you know: Amazon is also… AmazonBasics Amazon-branded electronic products AmazonFresh sells and delivers groceries in Seattle AmazonStudios online social movie studio Amazon WarehouseDeals offers discounts on refurbished products Did you know: Amazon has had one of the fastest growths in the Internet’s history… Revenues reached within first 5 years $2,8 bn $1,5 bn $0,4 bn eBay Google Amazon Amazon and eBay results from 1995 to 2000, Google from 1998 to 2003. Even though Zynga and Groupon appear to have an even quicker growth, they haven‟t been compared because 1- sales have not been officially disclosed 2- they haven‟t reach their fifth year Did you know: Amazon Web Services drives these companies… Did you know: Amazon.com is a giant… Y/Y growth for Q1 2011 +38% Market cap $90 bn Customers 137 m 3 × growth of 2 × market cap 2 × # customers E-commerce market Employees 33,700 Annual revenue $34 bn Internet traffic rank 16th Retail brand 1st Paid out $1.2 bn 15 × more than 16% more than before before to buy Source: Amazon.com, Alexa, Brandz. Market capitalization as of April 2011. Why? A vision… From 1994, Jeff Bezos knew he could create a retail website that would not have the limitations...
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...Blackboard: 1. The Institutional Yes: An Interview with Jeff Bezos 2. “Amid the Gloom, an E-Commerce War” New York Times, October 12, 2008 Assignment Questions: 1. Consider the challenges facing the company. As a member of the Amazon.com board of directors in early 2001, what actions would you take? 3 pts. I would not have partnered with the dot-com retailers because they didn’t need topartner with another dot-com realtor it was a good move to partner with companys that need the partnership. 2. Do you agree with the decision to pursue the Toys “R” Us deal? Why did the company do the deal? Should they do more deals like this? What impact does the Toys “R” US deal have on Amazon.com’s business model in early 2000? What is the present status of relationship between Toys “R” Us and Amazon.com? Provide your comments. 5 pts. The deal with Toys “R” Us were brought upon as a result of Amazon.com reevaluating its business model due to the dot-com crash and declaring bankruptcy. They made a decision not to partner with anymore dot-com retailers but to lean towards the traditional retailers. I do agree with the decision that was made to pursue the deal with Toys “R” Us because it brought expansion to Amazon.com’s business model as a logistics services provider. The objective was helping traditional retailers that desired to develop its online retailing systems capabilities while upgrading and enabling its distribution and nourishing skills that enabled its end-to-end visibility...
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...Amazon Evolution BIS 219 June 24, 2012 Ursula B. Woodruff Being the global leader, Amazon.com is at the top of the ranks in e-commerce. This organization has not only enlarged its international websites, but had expanded their network worldwide of customer service and fulfillment service center (Amazon.com, 2009). Amazon.com was established in 1995 and has expanded into an international Fortune 500 cooperation with distribution locations in France, Germany, Japan, China, Canada, and the United Kingdom (Amazon.com, 2009). In an effort to sustain success in the business, the company took full advantage of innovative technology. Arising to be the method in managing business and shopping society uses the internet daily to complete such tasks. Also to maintain a thriving organization Amazon decided to broaden their services from retail online to offering services online in an extraordinary way. Online, customers have the choice and opportunity to view and purchase a broader selection of service and products. There is rivalry in every business. Google is an online search engine that allows customers the opportunity to utilize its online services. Google owns many other websites that are all well known. Leading the way for information in the technology field, Microsoft was founded in 1975. Although other online business such Google and Microsoft are in stiff competition with Amazon, the company is still considered the leading retailer online. When Amazon took the initiative...
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...Case Report - Amazon CONTENT 1. Amazon in Brief 2. Amazon’s Five Forces 2.1 Threat of New Entrants 2.2 Bargaining Power of Buyers 2.3 Rivalry Among Existing Competitors 2.4 Bargaining Power of Suppliers 2.5 Threat of Substitute Products or Services 3. Amazon’s Value Chain 4. Conclusion 5. References Case Report - Amazon 1. AMAZON IN BRIEF Amazon.com, an American company, started the journey 1994 in a small garage based in Seattle, Washington. Today, twenty years later Amazon has become the world's largest web retailer with a predicted revenue around $100 billion in 2014. The founder Jeffrey Bezos, a former Wall Street broker, started Amazon.com by selling books online from the garage in Seattle through the website Amazon.com; With a mission to provide everything for everyone. The company is one of the most customer-centric company in the world and every decision taken by Amazon, started with the key question; What is the value for the customer? - to provide the costumer with the best possible experience of Amazon. Jeffrey Bezos did not care about profit or return to the shareholders; the main focus has always been to provide the costumers with the most enjoyable experience. By offering a wide range of products and services to the lowest possible price and a fast and convenient delivery. Over the years, the selection of products and services have expanded enormously from just...
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...Amazon.com Amazon.com, Inc is an American electronic commerce and cloud computing company with headquarters in Seattle, Washington. It is the largest Internet-based retailer in the world by total sales and market capitalization. Some of the key strategies of this organisation is as follows: Cost leadership Amazon leverages economies of scale and economies of learning to make products available at cheaper price. Amazon’s huge bargaining power over its suppliers and it excellent distribution reduces its cost of operation which makes it possible for Amazon to reduce the price of products Differentiation Technologies such 1-click, Recommendations, Wish list differentiates amazon from rest of the competitors, these features make it easy for...
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...View • Financial Analysis Using an Analysis of the Value Chain Amazon Amazon has developed an analysis of the value chain of its Competitive Advantage “own internal operationally better assess how you can add value and sustain competitive advantage have used the value chain model of Michael Porter,"Create and maintain superior performance. " Example of a Strategic Plan Model - Amazon Internal Analysis Tools, Strategic Planning, Strategic Planning Models Primary activities and support activities Primary activities are those needed to produce a product or service to the end customers. These activities generally include: • Inbound Logistics: receiving goods from suppliers, and store and move the good • Operations: Manufacturing or assembly of the product • Outbound Logistics: The shipment of goods to wholesalers, retailers or directly to the final customer • Marketing and Sales: Marketing involves customer needs understanding, communicating those needs, and the promotion of final products. • Service: Involves (eg , handling , complaints , installation, training ) aftermarket Support activities help facilitate or assist the primary activities of production of product. Examples include: • Procurement: purchasing raw materials and other inputs used in operations • Human resource management: recruitment, hiring,...
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...Resources, 2009). It is the largest online electronic retailer in America (Webley, 2010). Amazon was founded in 1995 by Jeffrey Bezos’s (Amazon Global Resources, 2009) . Since Bezos opened the doors of Amazon he has defined and redefined online retailing for the rest of the Internet retail world. When the doors first opened it was from a two car garage in Bellevue, Washington (Amazon Global Resources, 2009). It was nothing more than an online bookstore; the inventory was stored in Bezos’s two car garage. It has now expanded to offer the Earth’s biggest selection of books, CDs, videos, DVDs, electronics, toys, tools, home furnishings and house wares, apparel and kitchen gadgets (Amazon Global Resources, 2009). Customers still rank Amazon.com as the best online Internet retail shopping website (Farfan, 2011). This was based on their internet shopping experiences during the 2011 holiday shopping season (Farfan, 2011). Identifying Amazon’s Mission, Vision Statement and Primary Stakeholders Mission and vision statements are written for the employees and customers. Mission statements can be one sentence or a short paragraph which describes the purpose of the business. It identifies, the companies values and principle business aims. A vision statement can also be a sentence or a short paragraph providing a broad image of the future (Farfan, 2011). Amazon’s vision and mission statement are the same, "Our vision is to be earth's most customer centric company; to build a place...
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