Essay about Value Chain Analysis - Amazon.com

Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage

Jeff Bezo’s began Amazon in his garage in July 1995 with three Sun workstations setting on wooden doors for tables and extension cords running from everywhere (Academy of Achievement, 2010). Right from the beginning he was a visionary leaving his well paying job as a senior vice president with D. E. Shaw to begin Amazon.com (Academy of Achievement, 2010). Being the visionary that he is he saw an opportunity prompted by the huge growth rate of internet use in a single year and ran with it never looking back. Jeff realized that the internet had “no real commerce to speak of” so he began researching possible businesses (Academy of Achievement, 2010). “After reviewing 20 mail order businesses and deciding which

Amazon understood firsthand that the competitive advantage of a company originates immediately from how distinctive the organization's resources and competencies are. Amazon is able to both engage in production at a lower cost and generate a superior product at a standard cost. This is accomplished mostly via Amazon's strategy of having a wide variety of goods and competitive pricing. Customers know they can find basic products at slashed prices or high quality goods at standard prices and this is all achieved via the enormous range of products and product brands and types available on their massive marketplace. For example, the depiction displayed in the case study which shows how growth was related directly to: lower cost structure- lower prices customer experience traffic sellers -selection and convenience. While this is a grave oversimplification of the Amazon business model, it demonstrates how many aspects of the strategy reinforced one another.

This paper was conducted as a Discussion Board Post assigned by Professor J. Reinke of: Liberty University, Graduate School of Business, Lynchburg, Virginia 24515.

The value chain, made by Michael Porter, is really important to see how a company structure is created. The value chain is constituted by two parts: support activities (firm infrastructure, human resource management, technology development, procurement) and primary activities (inbound logistic, operations, outbound logistic, marketing and sales, service). (Johnson et al. 2011, p.97-99)

Amazon.com Inc. was initiated by Jeff Bezos in 1994 after realizing the rapid rate at which the internet and websites were growing in popularity among business organizations and individuals. In 1995, the company started operating its website for selling books, videos, compact discs, computer software and computer hardware before being incorporated in1996 as an e-commerce company (Reuters, 2015). Apparently, the company offers may products and services for sale; these products include merchandise for resale products offered by third parties. In this regard the

Amazon.com is a customer centric company. They put more effort in improving their system to make the experience of customer more comfortable so that he keeps on returning to the website. Jeffery Bezos who is the founder of the Amazon.com started this company after seeing the use of internet increasing rapidly.

Sources of information:Bevan J, Dransfield R, Coupland-Smith H, Goymer J and Richards C – BTEC Level 3 National Business StudentBook 1 (Pearson, 2009) ISBN 9781846906343Bevan J, Goymer J, Richards C and Richards N – BTEC Level 3 National Business Student Book 2(Pearson, 2009) ISBN 9781846906350Coupland-Smith H and Mencattelli C – BTEC Level 3 National Business Teaching Resource Pack(Pearson, 2009) ISBN

Value Chain analysis evaluates each step business goes through from inception to finality. The goal is to maximize the value for the total cost. Costco's mission is to provide their members with quality goods and services at the lowest possible prices. The company’s mission, values and strategies suggest Costco uses a broad enterprise strategy which fits in the societal framework. To ensure employee motivation, Costco offers them a unique banquet of benefits. This include; paying health benefits for them, 50% higher wage, employee retention of over 90 percent, and maintaining employees even during recession periods (Costco, 2010). The Company’s strength is its primary value chains which split into two distinct functions: Demand fulfilment and Demand generation. Demand fulfilment includes input logistics, operations, and output logistics. Demand generation involves sales, marketing, and service department which breaks down into sub-tiers. Costco’s support activities include HRM, technology development, firm infrastructure and procurement. Costco’s weaknesses are difficult to pinpoint; one weakness is persistent low operating profit margins. Bigger profits can occur by not paying employee benefits and with demanding higher returns from their suppliers. The problem would be at what cost?  Costco receives cost advantages from value adding major (brand items) activities. However, it continues to experience a challenge

yielding two equal peaks, as observed in some more complex models (Fig. 2A, scenario 2). If two unequal peaks recruit GTPase equally, then the two unequal peaks would simply coexist (Fig. 2A, scenario 3).

One of America’s greatest start-up success stories is Amazon. Jeff Bezos launched the website in 1995 and he is now having revenues of $61 billion. At the start of e-commerce, Amazon was an innovator of delivering supreme customer service, which at that times was very rare. Amazon is an illustration of massive organising skills, the company sells an enormous range of products, all day, every day, for 365 days a year and is able to maintain over 80 warehousing and fulfilment centres.

With the advent of the information technology, specifically the internet, it is said that more and more companies are existing in the online world. The changes in the business market also allows customers to change and become more dependent on online stores and online shopping than go and find something in shopping malls or retail store. One of the existing and considered as the largest and competitive online shopping in the world is Amazon. In this report, the goal is to analyse Amazon based on the case study provided. The analysis includes the discussion of Amazon’s s strategic intent, main resources and capabilities. In addition, this will also include analysis of the resources and capabilities that give

Amazon is a company that sells many open product categories online by allowing customers to take the time to search and shop through the product offerings. Many product categories that are offered on Amazon may include device accessories, kindle devices, beauty, books, electronics, health & personal care, etc. The foremost product category that can offer the greatest advantage compared with a retail store chain is most definitely the books category. Reason to this is that the company has expanded the customer’s online shopping experience by offering such a wide range of physical and electronic books, depending on the preference of the customers. They are able to search for the top-rated selling

Amazon started with Jeff Bezos’ idea on creating a company based around selling on the internet (Int. Directory). In the 1994, Jeff left the Wall Street firm D.E. Shaw, moved to Seattle. There, he created a business plan, from which Amazon was born. Jeff projected a 2,300% of annual web growth over time from selling on the internet. He took the five most profitable products and put them on his stock. At the time, books were a strong suit for Amazon, and where most of their profit came from (Int. Directory). Their competition was Barnes and Noble, who were large retail booksellers dominating the market. By 1995,

With the proliferation of communication and information technology, particularly the Internet, most business organizations have been at the forefront to join the e-commerce platform. Amazon is considered as one of the existing and largest e-business platform in the world. This report outlines Amazon’s strategic intent and key resources and capabilities. In addition, the report will also include an analysis of the company 's assets and capabilities that have provided it a sustainable competitive edge as well as, the recommended future strategy of the giant online organization. Amazon defines its line of business operations based on product and service sales, fulfillment, digital content subscriptions, publishing, and co-branded cards. The company 's line of business is defined as an online store, Internet service provision, and the Kindle ecosystem. This project will explore the truth that has made the online company to be considered as the top online retailer, which mainly focuses on strategy. This report also outlines how inventories play a fundamental role in the organization 's business or corporate strategy. The other issues covered in the report include the approach used by the online company deal with the supply chain and the reason behind fast shipping fast. The paper will outline the finance statute of the company and whether the finance effect will bar the organization from developing in future. In order to achieve the answer to the questions