BO5501 Operations and Project Management Solved

AMAZON

ABSTRACT:

Amazon is one of the well-known companies that had a wide range of customers from all over the world. In this report, a brief explanation about an organization and its workflow are discussed to analyze the working operations taken by the operational manager.   Although the Company’s goal is to be the perfect place to purchase, search and find any good or service that is available on the internet. The delivery system of products analyzed and explained with authenticated sources for exact knowledge of the reader. By analyzing the operations the implications associated with that are explained in well-defined format for better understanding of the reader.

INTRODUCTION:

Amazon is a forward-thinking and growing business. Amazon is a Seattle-based American international technology company that specializes in e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Five of the American information technology industry, alongside Google, Apple, Microsoft, and Facebook. The company has been called “one of the world’s most strong economic and cultural powers.” Any company’s marketing principles are developed and enhanced in large part by digital marketing. It allows us to meet regular goals by driving traffic to the official website through social media platforms.

Amazon has described the foregoing as primary performance points in its business strategy. First and foremost, a prominent brand name venue. Then offering clients fantastic pricing and a better shopping experience. After that, there’s a lot of revenue potential. Finally, realizing size or scope economies.

Amazon was founded in July 1995. Thus opened to the general public in 1997. After that,  Bezos was said to be among the few people who knew the true potential of E-commerce as well as the whole internet shopping industry. Bezos’ vision for Amazon introduced two comprehensive concepts into E-commerce: developing the world’s biggest customer-centric business and designing an ecosystem where shoppers could effortlessly purchase virtually everything they desired. Since 1995, the vision has become enormously realized.

INFRASTRUCTURE AND SERVICES INVOLVED:

Amazon’s marketing strategy revolves around serving customers across retail websites with an emphasis on variety, price, and comfort. To save money on shop occupancy, Amazon only deals with consumers via its website. The pages, which are very simple to access, list dozens of exclusive items offered by Amazon and third-party vendors. Amazon is indeed a marketplace as well as an online retailer. It takes advantage of third-party vendors to generate implicit network effects. Amazon is most people’s go-to online store because of its large variety, low prices, and ease. Having a top-of-mind understanding allows Amazon the amount it needs to successfully implement its operating plan, resulting in low costs. Amazon’s brand recognition also prevents online entrants from having enough traction to compete.

Amazon’s business strategy revolves around achieving a sufficient amount per fulfillment center and analyzing data. The launch of Prime subscription lowers the barrier to buying, leading to more orders per user and increasing Amazon’s volume. The large volume in each geographic region justifies the investment in a distribution center. Putting factories near to clients enables same-day shipping in certain locations, enhancing the company’s “convenience” pitch. Its technology is tailored to deliver small orders to customers. Amazon currently operates over 90 stores across the United States (Vieira et al, 2019). Meanwhile, Walmart, the largest rival, is investing $1 billion a year to improve the e-commerce platform, even though it only has 5 warehouses. At Amazon’s warehouses, product distribution and order fulfillment are centralized. It will invest in automating processes at its warehouse and lowering labor costs because of its large scale. Since Walmart’s operations are dispersed through thousands of locations, each store does not have the same volume as a large warehouse and therefore cannot be automated. As a result, the Walmart retail network’s order fulfillment operation

Amazon has a $100 million investment in a distribution center. Machines assist Amazon warehouse workers in packing orders as efficiently. Each package’s labeling is performed automatically. Employees also used wander around the center collecting goods for each request, and Amazon used radio frequency equipment to assist them in easily locating items. Amazon developed a patented algorithm to arrange goods in the stores such that products that were frequently ordered together were placed next together. Currently, robots gather objects as they walk along, and workers only need to stay in one spot and move the items gathered by machines into bins. Automated systems allow fast order delivery with a relatively low rate, delivering on the company’s pledge to provide comfort to consumers. In this situation, since the system’s capital and operating costs are smaller than additional costs from staff, Amazon may justify investing in the modernization of the fulfillment center, resulting in reduced expenses for Amazon with lower prices for customers.

It would be remiss, not to mention Amazon’s efforts to improve last-mile distribution infrastructure to maintain their prime customers happy. Amazon has traditionally relied on conventional distribution suppliers to supply the shipments, such as FedEx,  UPS, and Postal services. Those on delivery startups, such as Postmates or Instacart, have recently emerged to lure consumers away from Amazon. It is quietly developing its fleet of vehicles to provide same-day supermarket service to relieve the burden on distribution providers, as they don’t want to rely on someone else’s delivery capabilities, abandon cost flexibility, or lose consumers to new startups.

SERVICE DELIVERY SYSTEM OF AMAZON:

Amazon employs item-to-item similarity measure, which ranges to large data sets and generates high-quality reviews in full detail. This method of filtering compares each one of the recipient’s bought and classified products to related items, then blends the results into a user-friendly recommendation list. Amazon is increasing its drive to own the whole supply chain and eliminate the reliance on firms including FedEx and UPS. The company also owns its cargo ships and passenger planes. According to Morgan Stanley, Amazon is on track to overtake both FedEx and UPS in terms of product volume in the United States, with the organization now shipping 2.5 billion shipments a year relative to FedEx’s 3 billion and UPS’s 4.7 billion. Amazon’s figure has more than nearly doubled year, from around 20% of most of its specific packages to around half today.

Amazon’s latest one-day Prime delivery program, which officially launched last year and aims to expand to more countries and goods as time goes by, is a significant contributor to this. “Prime’s move from one to two days has been well received by customers, who have already bought billions of goods for free one-day delivery this year. Through an earnings report in October, Jeff Bezos stated of one-day Prime delivery, “It’s a huge investment, and that it’s the best long-term choice for consumers.” A call for clarification on Amazon’s package amount was not immediately returned. It’s not all about delivering more products to more buyers at faster speeds with Amazon(Majed et al,2018). It’s also about controlling everything from the creation of a package at an Amazon warehouse to last-mile shipment to a customer’s house, which has proven particularly problematic for commerce firms.

Amazon has invested billions to FedEx and UPS out over years in an attempt to have the box to someone’s house. This is also why the firm is now avoiding those arrangements, not only with package providers, as well as with companies that ship goods by air and sea. Amazon unveiled the Prime Air brand in 2016, which includes both its in-progress distribution drone project and its transport plane fleet, and the company has gradually added planes to its ships over years. Amazon and FedEx terminated their land delivery and air freight deals sooner this year. Also, use UPS, but the Amazon Flex program, which is a type of on-demand contract network close to Uber and grocery distribution firms like DoorDash, has been developing out a system of its delivery people. Thanks to one-day Prime delivery and the overall growth of its store business in the US, Amazon said that it invested 50 percent mostly on fulfillment in the three months lasting June to September, totaling $9.6 billion. However, if it means Amazon can manage the whole distribution chain from beginning to end, it’s a worthy investment.

CUSTOMER CENTRICITY:

Customer-centric included telling people what they needed and categorizing their responses. Figuring out just how their requirements will be met providing it to them at the end of the process. That, as per Bezos, is the conventional way of doing it. Customer-centric is a concept used to describe a company’s approach to its customers, Also, Customercentricity also refers to novelty on behalf of consumers (Tiasanty & Sitio, 2019). As per Amazon, creativity entails locating and supplying what consumers don’t realize they want. Since they created the ultimate user service, Amazon became the biggest and successful store in the world today. Although customers purchase goods online, they predict three things: Wide Selection: Customers still look to seek the product they’re looking for, but this product must, of course, be available.

The web’s personalization aspect is the third interpretation. Amazon updated their shop to accommodate each customer by introducing a “your store service” to meet this third sense of customer-centric. This was how the vision became a reality. Amazon’s popularity is primarily due to the cutting-edge technology and activities, all of which were promoted by Jeff Bezos, the company’s CEO. This cutting-edge technology was a significant gamble for the e-commerce behemoth, but it paid off handsomely. In 2017, about 22 million Echoes units were sold. Amazon places a premium on providing convenient, well-chosen items at the lowest possible price. The Amazon Effect has been shown to affect a slew of shifts in the shopping industry. Among the consequences are increased price versatility and standardized shopping in conventional brick-and-mortar stores. Pass-through inflation has decreased as a result of increased price stability and standardized pricing. Despite detractors’ claims that every company’s customer-centricity is just like any other business, Amazon’s customer base has grown over time. Although Amazon started as a bookstore, the business planned to be a one-stop-shop for consumers to purchase something online. Amazon moved\sits attention to quite a new category of products, which includes kitchenware,\stools, and auctions.

IMPLICATIONS:

In addition to taxation rules, Amazon.com is currently subject to general market laws and legislation or rules concerning the expansion of online trade. Expansion of a company’s services delivery center network, for example, could result in increased revenue and other tax liabilities. Regulatory authorities can enact specific rules and laws regulating global retail and the Web. Costing, copyrights, taxes, consumer protection, material, delivery, and functionality, as well as the quality of services and goods, can all be covered by these regulations. Amazon.com has received backlash from a variety of outlets, with the ethics of some corporate practices and strategies being called into question. Amazon has been accused of anti-competitive and anti-competitive practises, as well as of mistreating employees and customers

Changes in consumer rights legislation can also impose extra costs on businesses doing online business. Such rules or laws could stifle the growth of the Internet as well as other internet services. As a result, demand for Amazon’s goods and services could decline, while Amazon’s price of doing business rises. Furthermore, existing rules covering topics such as sales and other taxes, land rights, libel, including individual rights do not seem to extend to the Websites. digital trade. Disdainful of such issues’ resolution could hurt Amazon’s company.

  • Amazon’s existence could be jeopardized due to the uncertain future in shopping and the rise of rivals with competing business approaches.
  • About the fact that Barnes & Noble appears to be lagging behind Amazon in terms of revenue and earnings, only time will tell how long this will be the case.

RECOMMENDATION:

Many tactics can be used to entice customers to purchase a product; several of the most effective are mentioned below:

Recognize: When you are creating a product, make your customers aware of it so that they will be interested in purchasing it. This is a prerequisite for every commodity to be produced to gain brand recognition. To make consumers aware of your goods, the manufacturer must rely on the right approach and forum.

Create a need for consumers.: When anyone wishes to make good stability in the market, they must first create a demand in the market and demonstrate to the consumer that their lives complete without your product. This can only be accomplished by comparing the product to other goods on the market and demonstrating that it is the most effective and convenient among them. Need to develop  Golden Age for Similarity Computation and enhance the Algorithm with Model Size with inheriting what motivates the User to visit the site.

Simple to use: The product or business you’re starting must be simple to use and use from the customer’s perspective. The user interface should be intuitive and recognizable to the consumer. There should be no protocol that is too complicated for the operator or the client.

Product of high quality: When it comes to gaining consistency in the marketing sector, the first step is to create a high-quality product that can satisfy customers. That if you make a fake product, the buyer would buy it once and tell everyone not to buy it again.

Digital Marketing Plan Skill Requirements:

Data analysis: Most companies have a lot of data to track, and great digital marketers know how to gather and use the data efficiently. The majority of companies will continue to look for people who can not only “read” data, but also know how to use it to improve potential consumer strategies(Shavarani et al, 2019). Experts can depend on prior information about the customer’s preferences.

Design Thinking is a concept that refers to a method of solving challenges from the customer’s viewpoint. When grappling with large-scale complex situations, the approach facilitates human-centered behavior.

Social Media Marketing (SMM): As the name implies, social media marketing is a form of digital marketing that uses different social media platforms to promote and sell products and services. This can be seen on social media marketing sites such as Facebook, Twitter, Linked In, Instagram, among others.

Affiliate marketing is a forum in which one company advertises itself on another company’s website, resulting in traffic going in that direction. For both sides, affiliate marketing is a win-win situation. Your affiliates or referrals can list your website and link back to it. In this way, all companies will benefit from each other’s efforts.

Search Engine Optimisation (SEO) is the process of increasing the volume and quality of traffic to your website through the use of normal web search tools. Assisting a client with the organization is also a plus.

The skills mentioned above are extremely valuable and should be passed on to Impression. These tactics will assist in enticing and persuading social media consumers to buy their goods without having to visit Impression’s official website for its welfare and growth. There are no global limitations of digital marketing. There are several options to expand your company online, rather than just one. Because of the amount of time people spend online and the number of advertising outlets available, the company can attract a large audience.

In this analytical study, we concluded that consumer loyalty is the first rung on the ladder to organizational success, and your firm’s quality product is required to make a mark on the market. Before entering the market, you must have a well-thought-out market strategy in place to ensure your company’s long-term viability. To bring our corporate plans to life and meet the firm’s milestones, we should have devoted support personnel. Digital marketing is crucial in the early stages of every company’s or organization’s growth. This is a digital portal that anybody can use, and if you want to expand your company, simply communicate with consumers via a digital platform and gain access to thousands of customers.

Since nearly everybody is involved on social media sites and it has the most impact on customers, social media marketing is the most common marketing strategy today. Social networking creates a reference map of multiple consumers’ lives, resulting in the generation of product demands. Google ads are used by social media sites such as Facebook, Instagram, Twitter, and many more. We should keep track of employee success and use the Human Resource Management System (HRMS) to monitor employee records. HRMS is software that any company or organization may use to keep track of their employees. It allows all of the firm’s staff to work together on a single platform. All have their IDs, which they use to get their job information. Since the HRMS portal was introduced, officials were able to eliminate needless paperwork, allowing them to function more efficiently and keep a steady eye on the organization’s progress. HRMS stores all order records and keeps track of all activities.

CONCLUSION:

Amazon’s working strategy is explained in a well-defined format. The infrastructure, services, and service delivery system associated with Amazon are defined in explained to analyze the outcome. Then the implications rendered in the organization are mentioned above to create a proper overcome strategy or innovation to help the organization in gaining more profits.

REFERENCES:

Tiasanty, L., & Sitio, A. (2019). Analysis of the Effect of Service Quality, Product Quality, and Brand Image on Customer Satisfaction and Its Implications on Consumer Loyalty Pt. Sharp Electronics Indonesia (Case Study at Karawang Sharp Direct Service Station). International Journal of Engineering Technologies and Management Research, 197-212.

Shavarani, S. M., Mosallaeipour, S., Golabi, M., & İzbirak, G. (2019). A congested capacitated multi-level fuzzy facility location problem: An efficient drone delivery system. Computers & Operations Research108, 57-68.

Vieira, V. A., de Almeida, M. I., Agnihotri, R., & Arunachalam, S. (2019). In pursuit of an effective B2B digital marketing strategy in an emerging market. Journal of the Academy of Marketing Science, 1085-1108.

Majed, S. Z., Nuraddin, S. H., & Hama, S. V. S. (2018). Analyzing the Amazon success strategies. Journal of process management. New Technologies6(4), 65-69.

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