Amazon.com Supply Chain Management (2018) Harvard Case Solution & Analysis

Amazon.com Supply Chain Management (2018) Case Study Solution

Amazon’s Dominance in E-Commerce

It would be not exaggerate to state that the e-commerce has been taking a bigger share of the retail sales and it is recommended that the company should take larger cut of that share. It is expected that the e-commerce would most likely reaching 12.4 percent of retail by the year 2020 (Akbar pour, 2019). It is important for the company to capture the ecommerce sales by significant margin. Since, the company has nearly fifty percent of all the ecommerce trade, the company need to strive for achieving the leading position in the e-commerce and dominates the ecommerce. By doing so, the company would be able to astronomical growth. The exhibit A shows the amazon’s and its competitor’s dominance in the e-commerce (Desjardins, 2018).

It is significantly important for the company to beat the increasing competition from the online retailer and reducing cost of transportation, facility cost, inventory cost and information cost is one of the challenge for amazon which would be address by carrying the high demand title in inventory.

Notably, amazon is the founder run organization similar to other Silicon Valley companies Alphabet, Netflix and face book. One of the greater advantage of buying the amazon stock is the willingness, ability and desire of company to disrupt the wide range of industries. The powerful platform, culture, long term approach and resultant insights provide competitive advantage to amazon (Divine, 2018). Another reason of buying amazon stock is that the market capitalization of the company is $571 billion making its stock the 4th largest on the S&P 500 Index. Also, the company always emphasize on delighting its customer base and attract new customers. The cloud computing service business, amazon web service (AWS), the company use its cash flows in expanding the infrastructure of e-commerce and to expand its footprint into new markets(Mc Kenna, 2018).

Recommendation and Conclusion

The continuous improvement in the process is recommended along with the focus on bargaining with suppliers. The continuous investment in the technology would allow the company to build capability and capacity. The management of the company should be committed to decrease cost and increase profitability. Also, the company should integrate the flow of information with the speed and quality of the physical delivery.

In addition to this, the company needs to cooperate with the partners in order to develop the multi-tier inventory system to provide unlimited products. It should develop effective distribution network so that it would be able to deliver the products in timely manner. This in turn would reflect the company’s high responsiveness to its customer base. The supply chain strategy of the company should be cost effective and responsive. Moreover, to gain the competitive edge over the competitors the company should respond to wide range of demand, meet high service level as well as fulfils the orders in short lead time. The company should implement the supplier performance metrics to improve the third party supplier performance. The company should store the fast moving products in its own warehouses and divide slow moving products among Meta sellers and third party sellers.

The company should establish strong partnership with telecommunication providers. It should acquire strategic airport spaces in the strategic location, further collaborate with public sectors. The ultimate aim of the company is to improve the distribution network through holistic approach. The company should ensure that the supply chain system merges operational excellence with the multi functional and data driven decision making and strong analytical capability.

Exhibit A

 

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