Amazon Strategic Analysis Paper

Amazon is a Fortune 500 e-commerce company based in Seattle, WA. It is one of the top companies that sells the most goods over the internet.

The ability to compete on analytics is made possible by certain qualities some companies possess which allows them to collect and use immense amounts of data in a way that differentiates the success and practices of those companies amongst any other businesses. Davenport and Harris (2007) define analytics as “extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions” (p. 7). Therefore, to be able to compete on analytics, a firm must not only use the data to extrapolate and execute strategies and models in order to drive business, but also to use that data better and smarter than their competitors. This requires forward thinking and continual developments of current analyses and practices. With regard to Davenport and Harris’s criteria and concepts on the ability to compete on analytics, Old Navy LLC’s practices will be analyzed to find whether the company is able to compete, is a competitor, and how it competes, if at all.

Having data is not valuable but using data is. Analytic insights are changing the way corporates strategize and also redefining customer expectations. Analytics is the new differentiator between success and failure in the cut throat e-commerce and internet services based industry. The huge proportions of data generated from the increasing number of smart phones, the social networks and the ever more penetrating internet are automating customer centric marketing and other services. The idea is to predict what a customer may want to buy even before the customer realizes what they need. The techniques to achieve these results are broadly classified as Predictive Analytics.

Amazon.com is the biggest online retailer in the US, with about three times the Internet deals income. Amazon.com was established by Jeff Bezos in 1994 and he propelled it online in 1995. In spite of the fact that they for the most part are a retail location, the organization dispatched Amazon.com Auctions, a web closeout administration, in March 1999. Amazon.com has two distinctive value focuses for offering things on their site. One is called selling Individual, which is for individual merchants who wish to sell under 40 things a month, which cost $0.99 per deal in addition to a referral charge and a variable shutting expense for every item sold. The other alternative is called selling Professionally, which is for expert dealers who hope to offer more the 40 things a month, and has a month to month expense of $39.99 in addition to referral charges and shutting expenses for every media item sold.

The book is all about the things that make one to be a smart consumer of cutting-edge analytics, facilitating to frame the judgement, questioning about the information and the procedure, operating to comprehend the consequences, and using them to progress results for his or her business. Even though it sounds direct, I directly acknowledged it as a deceptively single-minded set of purposes of the book. The writers planned the first half of the book about an analytics outline that entails of six stages: problem acknowledgment, evaluation of previous results, displaying, data assortment and data examination, and outcomes demonstration and action. This planned method to discerning about analytics is one of the most important notions that Davenport

Businesses today have access to significantly more data than any other time in history; however, most businesses are not capturing or using the data effectively. A report by the Aberdeen Group, “The Executive’s Guide to Effective Analytics,” indicates that “44 percent of executives are dissatisfied with the analytic capabilities available to them today, and that they often make critical decisions based on inaccurate or inadequate data” (Forbes, 2014). Luckily, CEO’s are beginning to recognize the need for analytics and more and more businesses are making a shift towards a data-driven business culture.

In the New Science of Winning book, (Davenport & Harris, 2007, p.7) analytics is defined as “the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions.” [1]. To be successful in today’s competition, my current employer, DLL Financial Solutions Partner (DLL), is competing on analytics and fully aligned its core strategies to be supported by extensive statistical and computer based decisions. DLL is a global financial services company with operation in 36 countries, and its main focus is in the commercial equipment finance sector. In the following paragraph, I will explain DLL’s position in the industry and its ability to successfully compete on analytics with regards to its core business functions.

Amazon is an online retailer focused on selection, price and convenience. Incorporated in May 1996, Amazon.com offers programs that allow sellers to sell products on the website and have the fulfillment performed by the seller. In addition to the online marketplace, Amazon also manufactures and sells Kindle devices. Through the different programs offered by Amazon, the company has the edge over their competitors. They are able to secure the lowest price, fastest shipping and offer incentives to the customer, such as Amazon Prime (Amazon, 2014).

Technology is another segment that will have a major impact on Best Buy in the near future. Predictive analysis, social media, and multichannel retailing are trends that are most important in Best Buy’s general environment. Knowing your customers is a critical part to any industry, and predictive analysis is becoming one of the best ways to accomplish that objective. By correctly using technology to control the high volume and availability of data, companies can understand customers’ wants. A core competency of both Amazon and Netflix predictive analysis; based on previous purchases or views

With “big data” and analytics being a hot topic as of late, drawing headlines like “The Sexiest Job of the 21st Century: Data Analyst” (Morris, 2013), it’s clear that this isn’t just a fad passing through. Data analytics has been around for a while now, but it is finally getting the recognition in deserves by many businesses. More businesses are seeing the value in using their data to make better business decisions, and one method of doing that is through using predictive analytics. According to Teresa Meek, “Predictive analytics can improve retailers’ pricing, inventory control, customer service, and ultimately, their bottom line” (2015). This paper is going to focus on looking at the different types of predictive analytics in relation to the retail industry. After highlighting the techniques and different software available to do predictive analytics, different retail businesses will be examined on how they are currently using predictive analytics as well.

In an uber globalized market of today, companies are faced with challenges in each and every step of their business. Our analytics and research services are geared towards giving those companies that extra edge over the competition. We process and analyze terabytes of data and break down all the fuzz and chatter around it to give our customers meaningful insights about their competition and the market they are engaged in.

Walmart is the biggest retailer in the world and handles more than one million customer transactions every hour and generates more than 2.5 petabytes of data storage (Venkatraman & Brooks, 2012). To put this into perspective, this data is equivalent to 167 times the number of books in America’s Library of Congress (Venkatraman & Brooks, 2012). So how can Wal-Mart use this massive amount of data and what useful information can this data provide? This paper will provide a brief overview of the importance of Business Intelligence (BI) and how the largest retailer in world, Walmart, is using it.

1. Management – Amazon has many corporate controls in place to ensure the integrity of the organization (“Company,” 2011). First, they have a code of business conduct and ethics that lays out the ethical rules that must be complied with (“Company,” 2011). They have a system of internal auditing and controls in place to make sure that the company is not altering financial statements or committing any illegal activity in the financial reporting process (“Company,” 2011). Amazon has an audit committee that is responsible for these types of activities as well as reviewing complaints from within the organization (“Company,” 2011). Organization members are encouraged to anonymously submit instances in which employees are engaging in questionable accounting or auditing matters (“Company,” 2011). The audit committee also helps the board of directors in verifying the accuracy of all financial statements and its compliance with all legal requirements (“Company,” 2011).

With the outrages price of movie tickets, to the nuisance of overpriced drinks and snacks, a majority of consumers are likely to wait for a movie they desire to watch to hit store shelves before seeing it. Amazons new product seeks to eliminate that wait time for viewers who refuse to pay ridiculous prices, or simply have the inability to make it to a theatrical release. The recommended price point for this new service is at $15.00 to rent the movie for a 24-48 hour time span, with the option to purchase it after DVD relase for an additional $10.00. In order for Amazon to gain rights to these titles, Amazon would offer an initial purchase price to the studio, with royalties attached.

Amazon is the big online shopping conglomerate we know today, which is known for their presence in the online shopping scene. They started with Jeff Bezos’ leadership, growing to where they are today. Amazon is a powerful company, however it is not without its problems. The company’s problems regard its strategies with growth, compared to Patagonia, leading them towards unsustainable results (LMPGS). To bring forth my proposal, I will talk about the narrative of Amazon’s start. Also, the definition of sustainability and why it’s relevant to the proposal at hand. Thirdly, a counter-argument will be brought forth on a practice used by companies that counteract sustainability. The proposal to change practices, such as the waste of packages, and the communication with suppliers. Amazon could be made more sustainable by studying other, less growth-oriented companies.