Amazon Case Study 2

Amazon targets the at-home customer. Amazon makes it convenient for customer to buy anything or Anything, with a capital “A” according to Bezos. Amazon provides convenience to customers all over the world with it services. The services Amazon provides ranges from AmazonFresh which delivers groceries to your home to Amazon Prime that allows you to stream any television show, or movie with any Amazon device. Amazon is a multifaceted online marketplace that is changing the game of selling. The convenience of one-click shopping is powerful and a rapidly growing industry. Amazon is leading in this innovative industry, and has created jobs in the process.

After reading many articles about Cloud Computing I saw the bright future for these types of cloud services. Aside from educating myself on this topic I feel that this could be beneficial to my fellow Computer Technology peers to address their client or employers cloud needs as well as people who are going to start a business and are looking at the options available to address their companies demands.

Amazon.com, Inc., on May 28, 1996, started offering a range of products and services through on-line webpages. This new company began to offer products including merchandise and content that was purchased for resale from multiple vendors and sellers ranging from lots of third-party ways. The Amazon.com business has three different segments within its operating environment: Amazon Web Services, North America, and International make up the operating areas. The North American area for Amazon has segments that focus on the sales from retailers of consumer items or product from sellers through its website Amazon.com.

In statement, Alijabre writes “Cloud Computing can help business shift their focus to developing god business applications that will bring true business value.” To prove his point Alijabre, uses statistical data gathered from one of big leading providers in Cloud Services. “Although cloud computing has been recognized as a way to improve business, not all businesses are the same. So, is cloud computing for all businesses or is it more beneficial for a certain type of business with certain infrastructure already in place?” To make his argument, Alijabre uses Amazon Cloud Service to give us a better idea the use of cloud computing in business, and what can they do to improve it. Amazon has been one of the best providers of cloud services to individuals or to small businesses. “Also, it has more than 79 million active customer accounts around the world, along with around one and a half million active seller accounts.” Undoubtedly, Amazon is the leading source in providing cloud services. Amazon makes it easier for the consumers to access their data online, only thing needed

2. What is the main business model adopted by Amazon? How has this model changed since the business was created? (10 marks)

Cloud computing offers many advantages to both end users and businesses of all sizes. The advantages of cloud

Amazon Web Services is a cloud computing platform which was to provide online services to websites (Rouse, 2014). Amazon is comprised of software development and customer service centers around the world (Rouse, 2014). At Amazon, workers are encouraged to tear apart one another’s ideas in meetings, toil long and late and held to unreasonably high standards (Kantor & Streitfeld, 2015).

Every application in Amazon has a number of dependencies. To ensure the application provides its complete functionality, the dependencies of the application must be executed within a smaller and stringent time. To ensure this, the client engages in a contract with services called as the Service Level Agreement (SLA). SLA can be defined as “a

Amazon strives to provide customers with the best possible online shopping experience by leveraging their powerful and innovative technologies. Part of the company’s competitiveness lies in their proprietary technology, which is licensed to companies like Target to run their e-commerce site. Its patented portal technology allows the customer to customize their on-line experience with personalized home page,

Amazon Web Services (AWS),is an on-demandcomputing platform. .Amazon Web Services’ cloud philosophy, increasingly driven by a belief in building architecture that is cost-aware and designed to optimize economies of scale so it can do volume transactions at thin margins.It enable businesses and developers to use web services to build scalable, sophisticated applications.Amazon Web Services provides a highly reliable, scalable, low-cost infrastructure platform in the cloud.

The company has many strengths. First, Amazon is the world’s leading online retailer. According to the 2016 Annual Report, Amazon had total net sales of US $135, 987 million in 2016. These total net sales include three segments which are North America, International, and AWS. Second, in comparison to many companies, Amazon has a superior logistics and distribution system, which allows the company to actualize improved customer fulfillment. Third, with its prolonged strategic drive on low-cost, differentiation, and focus, Amazon offers a wide range of product at low prices to customers. Fourth, Amazon enjoys global recognition from its customers. As stated earlier, Amazon built a strong brand in very little time. Finally, the

What is the business model for Amazon.com?  How does their business model differ from that of Barnes and Noble or Borders?  How would you value Amazon.com?

Amazon.com is a Fortune 500 company that has revolutionized the retail industry. In recent years, Amazon has faced increased competition in the highly competitive online retail space as competitors invested heavily in their online storefronts and infrastructure. Positioned in a highly fragmented industry, Amazon must find solutions that can sustain its long term profitability and maintain its market share. To that end, Amazon should grow the Amazon Prime membership base and expand on its media and mobile offerings.

Amazon’s core business of selling goods (ranging from books to fresh food and electronics to fashion cloths) through its e-commerce portal has seen exponential growth which necessitated a need for a massive storage and computing infrastructure that is always available and is resistant to failures. After building this, it is intuitive for Amazon to open up the infrastructure and sell it as a commodity. This helps Amazon not only to attract more customers to this new product but also to build new infrastructure thus benefiting its core business.

An estimate shows how it is possible for amazon to become profitable with lowest price. A product on average gets sold in 33 days through amazon.com. On the other side it competitors like best buy took 70 day to sell the product. (FAVERNOVEL)Amazon keeps the best-selling product to its own stock and longer tail items to third party sellers stock. This gives an advantage to the company.