Bit413 | Social Networks | Assessment Answer

Amazon has a unique structure that focuses on innovation and fresh ideas so that a huge base of customers can be created. Further, the culture of Amazon is based totally from experimentation. This is the reason Bezos knows to experiment, failures must be effectively accepted. Nevertheless, at Amazon, experimentation has always been occurring throughout and ideas are regularly being presented to Jeff, and for such purpose, a small executive committee has been established to decide which projects must be pursued (Brandt, 2011).

The entire team working in the company is entirely independent of each other that is a positive indicator. The reason is because Jeff believes such independence can assist the teams to utilize whatever resources or technology they require to make the projects successful and do not have to depend on other team’s technology to assist them (Brad, 2013). The convenience of Amazon.com and the introduction of hot new products that the site has been providing has skyrocketed it to the topmost list of most innovative and successful ecommerce businesses (Barnat, 2014). The ecommerce site operates through three segments namely International, North America, and Amazon Web Services. Further, the products include content and merchandise that it buys for resale from sellers and third-party sellers. Amazon also sells and manufactures electronic devices and through its subsidiary (Whole Foods Market Inc.) provides organic, healthy, and staples throughout the stores. The North America Segment comprises of retail sales of products and subscriptions from websites like www.amazon.com, www.amazon.com.mx, etc. There are many other websites that fall under the international segments so that people all around can get involved with the website. Apart from this, services like offering of publishing, databases, digital content, etc has also been done. The websites are designed in a way that enables sale of hundred million products. For such purpose, mobile websites and applications have also been designed to enhance the convenience (Cohn et. al, 2005). Further, electronic device like Kindle e-readers, Amazon Echo, Fire Tablets, etc are also designed to attract many consumers. In addition, amazon prime facility (annual membership) is also present to provide accessibility for infinite streaming of hundreds of television series and movies (Brad, 2013).

Business model

Ecommerce business models comprises of components like market opportunity, value proposition, competitive environment, revenue model, market strategy, competitive advantage, management team, and organizational development. In order to attract customers, Amazon has been doing a lot and for such purpose, it has enlisted pop-store and mom-store owners as partners within its delivery platforms (Rothwell & Kazanas, 2004). Besides, in remote areas wherein few people have internet access, residents can go to the domestic stores and utilize owner’s internet facilities to go through all online goods (Shayndi, 2011). Thereafter, such store owners record the orders, alert the customers, collect the payment, and pass the same to the ecommerce site.

The site has been targeting the upper and middle-class people who have experience in technologies but do not possess ample time to go shopping from physical stores. Considering this, the company has effectively positioned itself as a Go Global Act Local wherein one can purchase anything and get it delivered to distant locations (Alter, 2013). Furthermore, the site has procured several ecommerce start-ups like audible.com, junglee.com, woot, imdb.com, etc for offering high and effective value for the consumers through utilization of present technology of the procured partners at lesser cost (Shayndi, 2011). In relation to revenue model, the company focuses on transaction fees, advertising, sales, subscription charges, etc that allows it to generate maximized return on profits and investments. Furthermore, when it comes to market opportunities, the site always aligns with the trends and thereafter, offers various products and services to the consumers (Alter, 2013). Its strategy includes low prices, discounts, and a broad range of items sold online or through marketplace. In relation to United States, the site sells and holds its own stock of books, toys, and more together with selling of goods from the third-party sellers (Block, 2011).

Lastly, the site also strikes a balance betwixt all the required skills and functions to perform every job. Besides, management team consists of employees at the highest level who ascertains expansion and growth, and the site has the same business model accounting for these key components (Deckers, 2010).

Website

The website of amazon (amazon.com) started as an online bookstore but thereafter, expanded to sell video streaming, mp3 downloads, software, audiobooks, apparel, videogames, electronics, jewellery, etc. The company has separate retail sites for different countries and it also permits international shipping of few of its items to other countries. The company has also invested huge resources for server capacity for the websites specially to handle the additional traffic during festive occasions (Wells et. al, 2015). Besides, the outcomes generated by the search engine are partly ascertained by promotional fees.

Website Content- The site accommodates a search inside the box tool that allows customers to search for the keywords to find their desired item. The site contains details of the seller selling the item with their attained reviews for the products already purchased by consumers. Besides, there are options to filter the products as per the requirements like customer reviews, brand, price, etc so that the customers do not face complications while finding their desired items. The required details of every product are also present in the website so that if a customer is not aware of any item, they become so (Levine & Prietula, 2013). Moreover, the return policies and replacement policies are also prevalent that allows customers to return or replace any item based on their needs.

Hardware infrastructure- Unlike other ecommerce sites, Amazon establishes its hardware infrastructure from commodity parts. Moreover, commodity implies usage of equipment from lesser known manufacturers who do not charge more than their brand name competitors. Besides, for parts wherein commodity provision is not available, the site attains rock-bottom prices (Cokins, 2013). The offering of AWS hardware makes the site’s approach clearer by depicting that brand-name providers of hardware believe that one advantage of paying high prices is that consumers can attain high-quality gear.

Software- The ecommerce site has its software named amazon that is available and accessible in all kinds of devices ranging from smartphones to personal computers to laptop to Mac. Such applications only require registration or signing up of a user and thereafter, they get registered with the site to purchase a wide array of items at lesser prices. Besides, the site has hired the best minds in professionalism and technology to build, innovate, and advertise amazon softwares so that users are guaranteed maximum effectiveness in choosing their products. Moreover, downloading of such software is also free of charge for every individual and one can easily sign up only with the requirement of an internet connection. Nevertheless, if there are bugs or issues in the present software, the site also ensures release of regular updates for the same so that all issues or complications associated to the software gets terminated.

Security issues- At amazon, the team takes privacy and security issues very seriously and customers who have signed up or logged on the website or software can attain the following benefits. Firstly, customers can contact customer service when there are suspicious, unknown, or fraudulent buying of goods, orders, or transactions from credit cards (Barney & Ray, 2015). Further, customers can do the same in case of suspicious change in passwords, potential fraud, etc. Secondly, customers can report security issues by clicking on a separate link that diverts the website in another section wherein AWS (amazon web services) security issues are discussed. Lastly, the customers can also report copyright infringement by clicking on a link provided to report a security issue. Therefore, customers can easily control enhanced access to their data and with the usage of cryptographic techniques, the site can authenticate anyone intending to access the same (Wells et. al, 2015). Overall, the ecommerce site always intends to spend a good time trying to fix and trace all the known security issues so that the vulnerabilities are effectively terminated.

Payments/transaction process- Amazon pay has become an online payment service provided by the site itself wherein customers can add money from their debit cards, credit cards, etc into such wallet and use the same for paying for the items purchased by them (Wells et. al, 2015). Furthermore, Checkout mode is another payment method issued by the site wherein users can just add their products into the cart and thereafter, checkout from the page to select different modes of payment available to them. If the account of users is effectively authenticated, they can also view their payment details and address in the page and thereafter, can use which payment mode and address to use. Besides, they also have the option of adding a fresh address or card to their account and thereafter, authorize their account to complete the process. When the address and mode of payment has been selected, it means that customers have effectively ordered their products and the same will be delivered to them by the site (Houston & Brigham, 2009).

Recommendation

Since amazon has been known for its knowledgeable products, it has functioned on complicated business challenges to innovate and establish effective solutions that enable several businesses including the websites throughout the world. The ecommerce site has been using an effective business model to widen its base of consumers and generate maximum revenue. The model has even provided thee business a strong impetus in enhancing its reach and availability. Overall, the site has required strengths to function its ecommerce domain but if it can enhance its presence in developing markets, there is no looking back then. Furthermore, there has been strict competition from sites like Walmart and Alibaba, and therefore, if the site makes way for enhancing its popularity of brand and market reach, it can outperform any rival. Furthermore, the site has been receiving many negative reviews in relation to cybercrime because this threatens every online ecommerce company. However, if amazon adopts stringent strategies to tackle these issues, it can attain heights with maximum efficiency and income. It is well placed in the market and the only method to attain the best outcome is to stress upon various mechanism that will assist in driving the business to a commendable height.

References

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Barnat, R. (2014) Strategic Management formulation and implementation. Available from: https://www.strategic-control.24xls.com/en205 [Accessed 2 August 2018]

Barney, J. and  Ray, G. (2015) How information technology resources can provide a competitive advantage in customer service. Planning for Information Systems. [online]. 3(2), pp. 444-460. Available from DOI: 10.4236/me.2015.63038 

Block, P. (2011). A consultant by any other name. Flawless consulting: A guide to getting your expertise used. San Francisco, CA: Pfeiffer.

Brad, S. (2013) The Everything Store: Jeff Bezos and the Age of Amazon. New York: Little Brown and Co

Brandt, R. L. (2011) One Click: Jeff Bezos and the Rise of Amazon.com. New York: Portfolio Penguin

Cohn, JM, Khurana R, and Reeves L (2005). Growing talent as if your business depended on it. Harvard Business Review. [online]. 83 (10), 62–70. Retrieved from: https://www.directorinstitute.com.au/sitefiles/Growing%20Talent%20as%20if%20Your%20Business%20Depended%20on%20It.pdf

Cokins, G. (2013) Driving acceptance and adopting of business analytics. Journal of Corporate Accounting and Finance. [online]. 24(2), 69-74. Doi: https://doi.org/10.1002/jcaf.21831

Deckers, L. (2010). Motivation; Biological, Psychological and Environmental. Boston, MA: Pearson

Houston, J.F. and Brigham, E.F. (2009) Fundamentals of Financial Management. Cincinnati, Ohio.

Levine, S. S., and  Prietula, M. J. (2013) Open Collaboration for Innovation: Principles and Performance. Organization Science, Harvard Press

Rothwell, William J., & Kazanas, H. C. (2004). The Strategic Development of Talent. Human Resource Development Press.

Shayndi, R. (2011).  Groupon Launches Anti-Amazon Promotion of Sorts.  Available from: https://blogs.wsj.com/digits/2011/12/20/groupon-launches-anti-amazon-promotion-of-sorts/ [Accessed 2 August 2018]

Wells, J.R. Danskin, W. and Ellsworth, G. (2015) Amazon.com, 2018. Available from: https://www.hbs.edu/faculty/Pages/item.aspx?num=49324# [Accessed 2 August 2018]