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Amazon case study

AMAZON CASE STUDY

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Amazon case study

  1. 1. SARIN RAJU CET,TRIVANDRUM AMAZON CASE
  2. 2. LEVEL ANALYSIS 1. PRE-STRUCTURAL LEVEL WORLD’S LARGEST ONLINE STORE 2. UNISTRUCTURAL LEVEL WIDE GEOGRAPHICAL EXPERIENCE-5 INTERNATIONAL STORES-’WHOLE WORLD IS MARKET PLACE’
  3. 3. 3. MULTISTRUCTURAL LEVEL BUYER SALE APPROACH,MULTI-LEVEL E- COMMERCE,MULTIPLE PRODUCTS AND CUSTOMER TRAFFICKING 4. RELATIONAL LEVEL MULTI-TIER INVENTORY MODEL-VERY LOW FIXED COSTS 5. OUT OF BOX LEVERAGED ON THE STRENGTHS OF BRAND VALUE AND BUSINESS MODEL
  4. 4. QUESTIONS AND ANSWERS
  5. 5. 1. Why is Amazon building more warehouses as it grows? How many warehouses should it have and where should they be located? Answer: As it grew, the company added warehouses, allowing it to react more quickly to consumer orders, It is clear that when the no of warehouses increase the response time decrease, and when the no of warehouses decrease the response time increase. So by increasing the no of warehouses and locate them near the customer will improve response time . Amazon has about 50 warehouses, 20 in U.S and rest 30 in Canada, France ,Germany , Italy , United Kingdom , China , and Japan.
  6. 6. 2. What advantages does selling books via the internet provide over a traditional bookstore? Are there any disadvantages to selling via internet? Answer: Now a days world has become global village that’s why there is a need to start business via e-commerce as we know e- business affects customer service elements such as product variety, availability, customer experience, time to market, visibility, and return- ability. Amazon offers a much larger selection of books than a typical bookstore. Offering the same selection at a retail store would require a huge location with correspondingly large amount of inventory. Disadvantages: Response time Transportation cost
  7. 7. 3. Should Amazon stock every product it sells? Answer: No …. It should stock those products which are in higher demand.
  8. 8. 4. What advantages can bricks-and-mortar players derive from setting up an online channel? How should they use the two channels to gain maximum advantage? Answer: The performance of traditional bookstore supply chain can be improved significantly by combining the strength of the retail and online channels. It is important to realize that the benefits of aggregation are most significant for low- demand books whose demand is hard to forecast. The book supply chains should be structured so that retail outlets carry many copies of best sellers for customer purchase and one copy of low demand books to encourage customers to browse and make impulse purchase. Terminals or internet kiosks should be provided so that customers wanting to order low demand books that the bookstore can offer. This approach allows the supply chain to reduce inventories by aggregating low demand books sold online while keeping transportation costs low for best sellers sold at retail store.
  9. 9. 5. What advantages/ disadvantages does the online channel enjoy in sale of shoes/ diapers relative to a retail store? Answer: Advantages: 1. Time to market 2. Flexible pricing, portfolio, promotions 3. low facility cost Disadvantages: 1. Transportation cost 2. Response time 3. IT cost
  10. 10. 6. For what products does the online channel offer the greater advantage relative to retail stores? What characterizes these products? Answer: Online channel offer the greater advantage for those products having large product varieties. For example; Netflix offers a much large selection of movies than any video rental store, offering the same selection at a store would require a huge location with correspondingly large amount of inventory.
  11. 11. AMAZON BASIC SUPPLY CHAIN
  12. 12. Supply chain drivers Facilities: warehousing and order-fulfillment for third-party sellers 49 fulfillment centers across globe United States – 14 spread across 14 states Canada – 2 France – 3 Germany – 7 Italy – 1 United Kingdom – 8 China – 8 Japan – 6
  13. 13. TRANSPORTATION
  14. 14. Transportation rely primarily on national parcel couriers UPS, FedX Own logistics network
  15. 15. INVENTORY
  16. 16. BOOK SHELF OF AMAZON
  17. 17. Inventory
  18. 18. SOURCING
  19. 19. PRICING
  20. 20. Pricing Amazon does make millions of price changes daily HIGH- LOW PRICING HIGH PRICE FLUCTUATIONS
  21. 21. Information Amazon web service: allow partner retailers, the individual sellers and developers to advertise their products through Amazon.com by building their web based applications in a reliable, scalable, and low cost way. Simple storage service: designed to make web- scale computing easier for the business partners and developers by web service interface to keep and receive any data, any time, from anywhere. Smart analytic search: allow detecting and decreasing the examples of fraud in Amazon web site by analyzing the behavioral patterns of fraudsters and designing the predictive scores.
  22. 22. INFORMATION:AMAZON SERVERS
  23. 23. INFORMATION :AMAZON CLOUD STORAGE
  24. 24. STRATEGIC FIT
  25. 25. AMAZON STRTEGY ANALYSIS
  26. 26. Strategic fit Competitive strategy Respond to wide range of demand Fulfill orders in short lead time Meet high service level Supply chain strategy Both cost effective and responsive
  27. 27. Facility: more towards centralization Inventory: high Transportation: Faster Information: high investment
  28. 28. Cyclic view
  29. 29. THANK YOU

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