Suggest and evaluate one possible strategy for Amazon.com, using the Value Chain methodology.

800 WordsApr 23, 20194 Pages
Suggest and evaluate one possible strategy for Amazon.com, using the Value Chain methodology. According to Webb and Schlemmer (2008) the firm’s infrastructure related to Amazon.com is that they consist of having the utilisation of technology so that they can connect with services in worldwide locations which cut costs and investment. Customer data is stored in warehouses where details can be saved in their data banks, although there has been a case when customer data has been lost so it’s not too reliable (Webb and Schlemmer, 2008). According to the Amazon strategic plan of the value chain, for the Human resources, Amazon grant their employees fringe benefits such as holiday pay, relocation allowances health insurance etc. This means…show more content…
Also the payment systems are functional and reliable. Customers can contact Amazon’s customer service and will get thorough feedback. For outbound logistics, there is a fulfilment centre in the UK that is close to the motorways, which makes it easier for stock that is ordered in being able to be ready to dispatch to the customers. In marketing and sales, if a customer has ordered from Amazon before, Amazon knows what type of products that customer purchases. For example a customer buys a product that is at a low price, so Amazon will suggest similar products that have that same price range. This also applies when the products are at a high price. They also offer free deliveries depending on how much they spend and discounts are available which varies with suggested product mixes. In services, Amazon offer a 30 day returns policy if customers are unhappy or an error has occurred with the product. This makes the company more reliable because if they sort their customers problems efficiently then the customers will remain loyal in the future. Critically reflect upon your learning experience by referring to one SM model as set against modules learning outcomes. The model that is being used is Porter’s Five Forces. It contains the power of suppliers, threat of suppliers, competitive rivalry, threat of new rivalry, and power of buyers. The presentation that I did for the Global forces and the European

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