People nowadays prefer to buy online rather than at physical stores since they may find a wider range of products at lower costs in one location. As a result, e-commerce firms are growing at a rapid pace throughout the world and are fiercely competitive. Companies may use internal resources to enhance their organizational management approach and acquire a lasting competitive edge (Cardenas, 2017). In this article, I’d want to look at a case study of Amazon, an online retail business. I’ll also go through its operational tactics. In addition, I will examine Amazon’s difficulties and potential answers to those challenges.
Amazon is an example of a disruptive innovator. It began as an online bookstore and has now expanded to include music, DVDs, CDs, software, video games, home goods, cuisine, toys, and cloud computing (Fleerackers, 2010). It earned a competitive edge in each market since customer satisfaction is its top concern. Amazon, for example, offers free same-day delivery for orders placed by its prime users. As a result, Amazon takes a market-oriented strategy, and its mission statement declares unequivocally that consumers may customise what they want with low-cost products.
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Furthermore, Amazon generates money by investing in its own brands (Dennis, 2018). Amazon, for example, makes use of information technology by creating the kindle, which is an electronic book reader (Fleerackers, 2010). Organizational sustainability is dependent on the interdependence of information systems and companies (Laudon & Laudon, 2007). Organizations utilize Porter’s five forces model (competition rivalry, risks from new entrants and alternative goods, supplier and customer bargaining power) to identify industry structure strengths and weaknesses (Kroenke, 2007).
Similarly, Amazon employs Porter’s five forces model to fight with its competing brands, such as WalMart, using the power of massive accessibility of substitutes, top quality consumer information, and cheap switching costs (Greenspan, 2019). For example, Amazon used to rely on third-party delivery services; however, Amazon altered its approach last decade and created its own delivery method to preserve revenue and focus on customer satisfaction (Feinberg, 2018). Amazon’s major activities, according to the value chain business model, include incoming shipping, administration, delivery of products and services, promotion, and customer relationship management. Amazon offers a fulfillment by Amazon (FBA) service to its sellers in order to streamline the selling process. Sellers may keep their items at Amazon’s warehouses, and Amazon will ship them to consumers when they are requested (Dudovskiy, 2020).
Amazon has opened Amazon Go shops in the belief that it can meet customers’ expectations of physical retail experiences while also breaking into the fashion industry (Schaverien, 2018). Amazon Go shops use artificial intelligence and machine learning algorithms to observe customers and what they buy (Bandoim, 2019). Moreover. With cashier-less technology in Amazon Go shops, Amazon wants its consumers to have a better shopping experience. As a consequence, in the technological environment, consumers will not need to carry cash, and there will be no long lines for check out: nonetheless, Amazon gives cash choices when purchasers wish to claim in cash
However, owing to the nature of laws and regulations, Amazon has a significant influence on pushback from China and Singapore. Amazon provides fulfillment services for domestic merchants in India, but it cannot sell its items under the new e-commerce laws. As a result, data from their merchants is important for Amazon to satisfy the needs of its consumers. Furthermore, customer experiences are the best value, and Amazon will pursue this policy despite opposition from India. Alibaba, a local e-commerce company that dominates the Chinese market, is Amazon’s main opponent. As a result, Amazon needs to obtain a competitive advantage against Alibaba in the Asian market.
Amazons Information Management System
The information management system (IMS) of a firm assists in the collection, processing, and integration of data with the organization’s proper activities. Amazon’s IMS consists of two major components: information management for the company’s business goals and customer relationship management (CRM) (Imran, 2014). SAS (Smart Analysis Approach) and SOA (Service Oriented Architecture) are used to handle information. The main strength of the company’s technology is Linux. The SAS system reduces and identifies fraud within the system by analyzing its users’ behavioral pat
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