Assignment Questions

Session 1: Amazon.com Case Study Questions

  1. What is Amazon’s business and what factors are critical to its success? [list or table]

Amazon’s Businesses

Critical Success Factors

Amazon’s business is concerned with selling a wide range of items ranging from books to home appliances. The book selling is the best business undertaking being facilitated by this company.

The company has stocked numerous books of all natures and genres thus facilitating customer choice and variety. The books are delivered at the shortest periods at low or no costs.

Cloud computing services being extended to companies and clients that deal with iTunes as well as helping Netflix

The company is relying on its data management techniques to undertake such services thus enhancing its profitability to a level that is beyond the scope of the competitors.

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  1. What challenges did Amazon face when it first entered the marketplace? [list]

    1. .High capital requirements where the funder had to solicit it from various sources to ensure that the company remains in operation.

    2. .There was huge trading losses incurred initially before the company managed to establish itself to the current situation.

    3. . There was massive competition in the industry at the onset since there were many players who were utilizing the same tactics as Amazon to reach to the buyers. Amazon was forced to computerize it’s services to get the global appeal that it enjoys currently.

    4. .There was limited space due to low stock turnover thus forcing the management to look for additional space to facilitate the storage of enough books that meet the demand.

  1. What information is required by Amazon to transact, to manage, and to innovate? [table]

Level of Information Processing

Information Needs

transacting

The management has to know the details of the order placed by the buyer as well as the physical address to facilitate prompt delivery of the orders.

management and control

The management needs to know the ordering patterns of the customers for them to plan on how to stock the required products to avoid shortages. This depends on the shppping history as well as the demand forecasts facilitated by the revlevenat departments.

innovation and corporate learning

Innovative and corporate learning are provided by the environment as well as the research and development segment of the firm. The research team has to go a step further to study the trends and come up with recommendations regarding the kind of things to be executed by the management.

  1. What are the challenges associated with running a fulfillment center versus the warehouse for a brick and mortar store chain (hint: consider Amazon’s critical success factors)? [table]

Fulfillment Center Operations

Warehouse Operations

  1. High dependency on data generated via the website.

1. Space is a huge challenge for such an arrangement thus making it rather expensive.

  1. High costs associated with data storage and maintenance due to heavy use of computerized mechanisms.

2. There is need for security personnel, which eventually leads to the increases in the operating costs of the organization.

3. Low stock turnover may lead to space limits, which may deny the organization an opportunity of storing variety of products.

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