Essay about Value Chain Analysis - Amazon.com

2880 WordsMay 22, 201412 Pages
Value Chain Analysis – Amazon.com Unit 4 Individual Project Assignment GB570: Managing The Value Chain Dr. Craddock Kaplan University January 6, 2012 Value Chain Analysis The purpose of this value chain analysis was to explore the dynamics of Amazon.com in terms of looking at the intricate foundation (value chain) the company has created to serve its millions of satisfied customers. This company operates in the highly competitive industry of e-commerce, which is made up of fast paced marketing, cut-throat pricing, and short attention spans. There are several major success factors to be highlighted in this particular analysis. Again, the primary theme revolves around how…show more content…
Early on, there was no such thing as an “e-reader”, so at the time many people still read hardcover books (and still do today), but could not always find the book that they were looking for in their local bookstore. Amazon.com came along and established relationships with hundreds of bookstores and warehouses all over the country to fill that gap for its customers. As the organization progressed, it realized that customers were also looking for DVDs, music, furniture, office supplies, and a host of other things that can now be found on the Amazon.com website. Even now “The US Kindle store offers over 950,000 books, which includes new releases and 109 of the 111 New York Times best sellers” (Data Monitor, 2011, p. 6). Market Opportunity Analysis Early on, Amazon.com leveraged the power of scalability to access thousands of customers who were new to the internet, but not new to buying things. Jeff Bezos knew that this was going to be a big business and he has said himself that Amazon was started based on a “regret minimization framework". In other words, his ultimate goal was getting the business off the ground to avoid being a late comer to the internet boom. At this time, the average consumer was amazed that they could go on the internet and find information on a wide variety of interests and products, let alone order something and have it come straight to their home.
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