Amazon Web services Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

INTRODUCTION:

Amazon Web services (AWS) isa set of propriety web based services owned by Amazon.com. Amazon.com is the world’s largest online retailer. AWS was founded in 1994 as an online retailer of books, but later on AWS started a broad array of products and services which ranges from simple storage to sophisticated database services that constitutes cloud computing software offered by Amazon.AWS is aninternet web based service which enables the business to grow in the computer technology that competing with one of the leading technology companies such as Microsoft, IBM and Google Inc.These companies are the competitive threats to Amazon, but the company believes that they havethe necessary skills, assets, quality employees and successfulmanagement team in cloud computingto havea competitive edge on these companies.AWS invested billions of dollars in web infrastructure in order to support its massive retail business. Recently, Virtualization has become a wide range of accepted ways to increase reliability of IT enterprise and reducing the operating cost, in addition to increase the profits and growth of the company.

In 2002, Amazon decided to initiate product data in developer-friendly format to third party affiliates such as an Associates group API, which leads to generate sales from other sites. The portion of revenue generated paid back to affiliates, they can also earn commissions from 5% to 8%. The executives of Amazon realized that the purpose of starting up more companies or affiliates would be benefited more on focusing the customer’s problems, satisfying their needs and then worrying about day to day back end technology operations.AWS is becoming more and more popular with time period, due to its cost-effective advantages. Furthermore, the investments of the AWS improved Amazon’s core businesses by introducing value added product and services.

SWOT ANALYSIS:

STRENGTHS:

Global Brand:

Amazon web services isalargeglobal brand. A brand well respected for its prices and customer convenience. The company has an ability to mobilize, leadthe commuting, voice of the community and bring the people together like a global village. Amazon has a brand reputation of greatercustomer services.

Quality Services and products:

Amazonprovides only best quality products and services to its customers, they know how to satisfy the customer’s needs, by gathering the feedback from customers on the amazon web portal.The services and products are liable, convenient, offers lowest and fasted shipping cost, lowest prices of the products with additional services for the wide selection of goods. AWS provides massive storage space and tested platforms, providing scalable and sure operations.

Amazon Web services Case Solution

Advantage over competitors:

Amazon has an advantage over competitors in the online market because they were the first to market and have more experience in this field. Amazon has 99% of uptime guarantee on the S3 services because they had experiences related S3 in the past and learned, much to bring an effective service and being able to offer a guarantee to the users. To design and build such huge cloud infrastructure, the competitors need a large amount of money, resources and time to bring up such infrastructure.

Strong management team:

The management team of AWS provides developers and their company with successful tools. The team of Amazon is dedicated towards their task, they work vigorously to earn and keep customers' trust by providing best services. Their team thinks about the long term, theydo notsacrifice the long termforthe short term. Employees that work as a team cab bring more innovation, invention and always find the way to simplify the task.

Cost Effective Quality:

The purpose of cost leadership strategy is to provide their customers the products and services at low cost than their competitors do. There are many competitors of the Amazon, that giving tough competition to the company, for Amazon it is necessary to succeed with the cost effective strategy. This will generate economies of scale forAmazon and benefits of the low costs of displaying those products on its online marketplace.The mindset of the customers is changing on dailybasisas they want the product which satisfiestheir needs and wants in low cost. The company also has a competitive edge on the reduction of labor cost.

Strategic Acquisition:

Amazon is successful in acquiring new firms to bring new and increase its products, services, skills, assets, and capabilities to the business. This is the reason that Amazon isnow offering the cloud services by introducing cloud computing software, has developed its information management (IM) and customer relationship management (CRM) skills. The company institutionalize strategy to stay in the competition.............................

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