Amazon's Case Study

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1. Explain how Amazon’s corporate strategy affects its supplier selection criteria. Give two examples (30 marks)
Amazon’s mission is simple, yet complex to execute: “To be Earth’s most customer-centric
Company, where people can find and discover anything they want to buy online” To achieve this mission amazon’s focuses on this strategies; customer service, distribution efficiency, and convenience.
Jeff Bezos the Founder and CEO of Amazon believes in the importance of customer satisfaction. This not only increases the customer base but it creates customer loyalty, some customers only buy goods from Amazon because their expectations will be met. They are several supplier selection criteria’s that company’s such as Amazon use; delivery, convenience, cost, quality of safety, service, social responsibility, agility and risk. Amazons main focus is customer service, distribution
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Identify Amazon’s sourcing strategy/ies Strategic sourcing refers to a service solution, sometimes called a strategic partnership, which is specifically customized to meet the client's individual needs. In a production environment, it is often considered one component of supply chain management. This is achieved through building relationships with suppliers, negotiating cost and developing agreements that ultimately help a company grow and become more profitable.
Amazon has negotiated contracts directly with publishers, building large warehouses, and leveraging expertise from newly hired Wal-Mart executives. Amazon has gone into several partnerships to achieve its goals of customer service, distribution efficiency, and convenience. It has partnered with convenience stores and drugstores; the online retailer has employed Amazon Lockers. Similar to a P.O. Box, the store and Amazon can guarantee the package is delivered safely. Not only does this service provide convenience for the consumer, but Amazon has stated that the store delivery service is saving money on some of its shipping
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