Amazon`s use and management of all the data elements used in its customer relationship management system are what keeps the company at the top of its competitors. Amazon provides real value for each specific customer through selection-targeted data that they have managed and used. The success of their recommendation system is based on the usage of a few data elements: what a customer has bought in the past, what items they put into their cart even if they didn’t end up purchasing those products, comments and ratings they have left on purchased products for other buyers, and what other customers have viewed or bought. The data within Amazon’s CRM system also allows customers to purchase the products they want with just one click, as their payment and shipping information, credit card information, and user information are already stored into their system from a previous purchase. Amazon uses Big Data to manage its data to constantly improve their CRM system. Big Data was added to a remote computing service known as Amazon Web Services (AWS), which offers tools to support data collection, data storage, data computation and data sharing. Amazon uses Big Data to access over one billion products in its retail store. All this data is being stored in S3 (Simple Storage Service), which is a simple storage service that can be used to store any amount of data from anywhere and anytime through web services interfaces. The issue of redundant data is solved within this S3 system by a
Three building blocks complement this: Amazon’s feedback system, recommendation system and its buy/sell system. Its recommendation system accounts for 35% of Amazon’s sales as customers are more inclined to buy a product based on the strength of the reviews of other customers. It also brought repeated purchasers that account for 66% of sales. (Salehnejad, 2012)
Amazon has earned a great reputation in customer service for allowing customers to shop without face to face, avoiding talking to a customer’s service representative agent on the phone, everything it done online. Sales clerk does not exist, everything is ordered with a click of the mouse, and arrives extremenely quick in the mail (Cohen, 2009). Amazon at interval has gotten involved with the customers when they can have too. According to Green, H. (2009), “Amazon stands out most markedly from other companies, and helps explain how the company earned the No. 1 spot on Business Week’s customer service ranking this year”( para. 1).
Amazon.com has successfully managed to make its customers to feel that anything they could possibly want could be found on their website. Additionally, its products are marketed at a competitive price. Another important factor is their speedy delivery with their usage of UPS and FedEx (United States) and Royal Mail (United Kingdom). The company also caters for people that prefer online shopping with extra services such as Amazon Prime - a service with a yearly payment, customers are eligible for free next day delivery. Even though Amazon.com is known to be an online seller of most things, it still excels in its original market of book selling. Evidence of such is
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).
The features are consumer-friendly and guide the customer through product listings that rival any major department store. Their website allows the recommendation of future product purchases based on consumer shopping/browsing history saved through their advanced customer relationship management (CRM) system. Amazon’s initial desire was to prevent the average consumer from needing to leave the comfort of their own home to accomplish their normal and continual shopping needs. This desire continues to be the driving-point for Amazon’s foundation.
Amazon focuses on global reach, putting customer first,, and extensive selection of products through its vision which is “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online” (Gregory 2016).
Amazon is using different operating models to provide products and service to customers. There are three distinct models that Amazon.com offers, each with a different supply chain. The three models are Amazon.com as seller, Amazon.com as intermediary, and Amazon.com as full-service e- commerce provider.
In my opinion the this article about how amazon is like the devil's work is false in a lot of ways. I also think that the way the author compares the process of buying things on amazon to something the devil does is totally inaccurate. One reason that this article is false because even though Amazon is here some major stores are still fully in action and not being affected by Amazon. The reason is because on Amazon you have to actually fill out a bunch of things, then wait for your item to be shipped to your house. With stores you see the item right in front of you and you sometimes have the sudden urge to buy it. Also how the writer said that the people would check out the book at a library and then buy it on Amazon is absolute nonsense.
When amazon was founded in 1996, the company began as a small online book retailer but has since transformed into a retailing giant that is able to compete in a highly competitive market. Although amazon competed predominantly with other e-retailers during the information technology boom that took place in the 90s, with an aggressive business and supply chain management strategy, amazon was propelled among the ranks of other industry leaders. Amazon has created a reputation that is characterized by its innovation, supply chain management strategies, and the use of disruptive technologies.
Amazon stated its marketing approach in its 2011 annual report as “we direct customers to our websites primarily through a number of targeted online marketing channels, such as our associated program, sponsored search, portal advertising, email marketing campaigns, and other initiatives.”(Petro, 2017). Being the leader of the ecommerce industry, Amazon maintains that
The objective of this case study is to outline and provide a brief overview of Amazon.com’s (Amazon) mission, strategic direction, core competencies, relied technologies and their future impact of new technologies, and how management and use of consumer data will impact future business.
Retailers have adapted to the online marketplace out of necessity and opportunity. The great recession placed many retail companies in financial hardship and while some failed, others innovated and became some of the largest companies in America such as Amazon. A recent trend is consumers are buying more products online than ever before. As a consumer, I enjoy shopping in the convenience of my home and having the items delivered to my doorstep in 48 hours or less. Global internet access continues to increase, with mobile devices and affordable internet for the home, consumers will continue to shift and buy products online rather than in retail brick and mortar locations. Online sales in the United States have increased over 250% in the last ten years, accomplishing $250.0 billion in 2012 (Tehrani, 2014). Therefore, Amazon is in a solid market position to capitalize on the future trends and booming ecommerce
Organizations like Amazon store realized that attaining long-term customer value through delivery of quality services is the key to their existence. Also, be alert to the customer’s needs and wants, because having a loyal base of satisfied customer brings relevant performance indicators. For example, increase in sales improved profits, and possible higher market share (Shamma & Hassan, 2013).
The most likely scenario is that the IPO will happen seamlessly. As the IPO was
In 2000, Amazon and Toys-R-Us entered into a symbiotic agreement that would benefit both corporate entities. Both companies had recently had unimpressive fiscal years due to differing issues. Toys “R” Us struggled with poor order fulfillment. Although they were equipped with enough merchandise, other issues kept them from being able to get orders to customers in a timely manner; especially during the busy holiday season. Conversely, Amazon was forced to write off $34 million because of a miscalculation in inventory and had orders that could not be honored (Ouchi, 2004). Following these debacles, both organizations felt that joining