Amazon Harvard Case Solution & Analysis

Amazon Case Study Solution 

Summary

The brand is the one of the largest online retailer and market leader in the electronic commerce. It has good relation with their suppliers which is a competitive advantage for the company. Electronic commerce is one of the emerging markets where entry and exit for any business are quite easy which means that it is a very competitive market. The reason for the success of the company is that it provides a large variety of products, security in a transactions which satisfies their customer for online payment, efficiency in the delivery system. The important thing for the company is their supply chain because it helps them to meet their customers’ requirements by delivering their product on time. The market in highly competitive, so the company always try to motivate their customers by providing superior value, so the customers gets attracted. Innovation is also a factor for the success of the company, the company always look for the change in their services with them to differentiate themselves from their competitors.

The company started its operation in the mid of 1994, before that the internet was used for the defense purpose or some different activity but due to the technology change, the local people of United States started using the internet which helped the company to enter in the online retailing business. Initially, the company started their business through selling a single product, and gradually they started expanding their products like they started online book selling and then they enter the online grocery store, electronics store, video games and other products. Amazon started moving geographically to further expand their business from the United States to Germany, Canada, France and other countries. Amazon brings the online payment services for the security of the online payment.

Amazon Harvard Case Solution & Analysis

Background

Amazon is one of the largest E-commerce stores in the world. Amazon started their business from United States in 1994 by selling the books through internet. Jeff Bezos is the founder of the Amazon, he began his career from engineering and then introduce first online retail website in the United States. Initially, Amazon selling books through using electronic commerce then they  sold different things like CDs, game, and electronic items which helped them to increase their profit.

Now they provide their services and operate in different countries like Australia, China, France, Europe, and India, the reason for the geographical expansion was to increase the business of the company.While geographic expansion they faced the challenges like language barrier because the website was developed for the people of the United States. It was in the English language so they came up with the idea to introduce a website in the different country according to the customers requirement based on their national language, they introduced a Germanic language for Germans, French for the people of France. But it was not limited to the website, the customer care also, because if the customer speaks in German he can face an issue, in order to accommodate this issue Amazon hired translators for their international customers to respond to any query they have and replying them in the same language.

The electronic commerce is very competitive and emerging. Continuous improvement and innovation plays an important role to set competitive advantage this is the reason Amazon encourages innovation in their culture, they always try to bring some innovation in the services. After book retailer store in 1999, Amazon decided to introduce online auction service for the customer so the customer can bargain on the product but it didn’t work on the expectation of the Amazon. Then they moved to another idea to fixed price, in the same year they come up withz Shop, which was opposite to Amazon auction. In 2000,the company came up with anew idea and introduced a new service which not only helps the customer to buy new product through the internet but also sells their used/old CDs and games.

In 2007, Amazon launched an entire online grocery store with the name of the Amazon Fresh Now, customer would order groceries online by using Amazon Fresh from their homes and request any suitable time for the delivery of those groceries, but it was limited to some areas only in United Sates. Amazon also acquired different sites for the household products and many different locations.

Introduction/Situation

Amazon provides services in bulk and free shipment, which helps the customer to purchase the products in bulk, saving the shipment cost. Amazon also introduced the Prime service which helped the customer to become the member of the Amazon and receive free shipment in two days. Amazon was charging for the Prime service annually.

Amazon Prime was limited to few countries like initially they offered their services in Germany, Japan, and UK then afterwards when they see the positive response they started operating in Italy, France, and India. Other than this Amazon Food delivery in London, same day delivery system for some large or metropolitan cities by a strategic alliance with the other firms like DHL.

The target market of the Amazon is upper and lower class because they believe that people have less time to go to the superstore or any physical store to buy their grocery or machinery and they are technology friendly making it easier to order through Amazon. Amazon maintained a good relationship with their customers by keeping their data through information management, and they have huge capacity to store all types of data...............

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