Amazon case study research papers. Amazon Inventory Management Research Paper Example : birchsidestudios.com

Second stage logistic process As show on figure 2, Amazon used to procure items from their distributor and store them in their warehouses. II-Conclusions and Recommendations 1. Amazon will have to offer good customer service to its buyers. However, whereas Amazon was planning to extend this model to all other categories, the company started to encounter some problems Julie et al.

On the one hand is unlikely to be overpowered by any new entrant as the barriers are high, and on the other hand this position provides a solid basis for protection against the loss of market share to direct competitors.

However, Jeff Bezos has seen the potential in doing this, as they have the experience and reputation in managing inventory and logistics, which other e-businesses find that hard to ignore.

Figure 5: Second stage logistic process As show on figure 2, Amazon used to procure items from their distributor and store them in their warehouses. As a result, Amazon is replaceable from one product to another and might lose market share.

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This has been achieved by taking up the Six Sigma approach to its distribution operations and by applying lean manufacturing and Total Quality Management methodologies to its processes. Figure 4: Therefore forward logistics could be considered to be a core activity with the company but is not the case for reverse logistics.

Last one by offering customer reviews and feedback forms on every product provided.

Amazon Inventory Management Research Paper Example : birchsidestudios.com

Denver Post Since Amazon uses drop-shippers as well as their own warehouses, split shipments became problematic. For one thing, customers are given short terms of payment, resulting in utilizing the buyers as a source of fund, whereas suppliers are endowed with long terms of payment cf. R Amazon.

Figure 2but with AmazonStudios and Ama- zonEcho the possibility to increase the number of columns to five is conceivable cf.

The most fundamental benefit of Amazon is the current market positioning, which has been established over decades through a lot of long-term investments. Amazon should see if reverse logistics is considered to be a core activity in the company. We identified that Amazon had different motives for modifying their logistics management when moving from one stage to another.

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On the one hand, it seems easier for companies to enter such markets because of the inside higher ed cover letter entry barriers with the help of the internet. Forbes There are certain factors Amazon will have to take into consideration if an outsourcing strategy is to be chosen Rao, Finally they entered into partnerships with retailers. Entered into partnerships with retailers This led Amazon to enter the fourth stage where they entered into partnerships with other retailers.

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Novet From there, Amazon then decided to enter into partnerships with distributors. Figure 3: Best Practices from eBay 5. This left him with two choices, either improve information system flow throughout the supply chain or build warehouses to manage its own inventory Hof, Part I: Built warehouses to store inventory In this stage the objective of Amazon was to build warehouses and gain better control over their Inventory and increase the range of products while reducing their logistics cost Choen et al.

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Figure 6: They handle products of different shapes and sizes. Thomas State of the art, viewed 27 March;http: Advanced Strategic Management 2. An essential one is the financing structure of the business persisting since the early years.

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Many years back Amazon would have never thought of doing such an activity as having more inventory meant more costs. Amazon has to see if it is a company that handles a large inventory. These factors are as follows: This has resulted in frustration among customers due to difficulties in returning a product to Amazon and the handling of returned products research proposal amazon Amazon was not very efficient.

However, whereas Amazon was planning to extend this model to all other categories, the company started to encounter some problems Julie et al. Another pro, which also results out of former long-term investments is the ability to diversify the strategy rapidly due to a broad product and service portfolio.

Amazon.com: Marching Toward Profitability

Part III: Since Amazon is always trying to centralize the focus on the customer through providing a wide range of products, to a low price, in an adequate delivery time, the strategic position towards their suppliers is often unfavorable. We have answered these questions to see if our recommendation is appropriate for Amazon to consider. After our case study date Amazon has gone on to further increase the variety of products offered and at the same time improving their operations.

Bibliography Abbildung in dieser Leseprobe nicht enthalten 1. Therefore a solution must be developed to tackle this issue. Since this paper refers to the previously mentioned case study abstract essay on art Gary J.

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In February Amazon launched AmazonPrime shipping, which had the goal of a fast delivery of about one million products as an everyday experience. Third stage logistic process Drop-shipment model This model gave greater flexibility in terms of product range. At the same time they have to make a profit.

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However Amazon did face a major problem of managing a large inventory along with high warehouse maintenance costs. For example, Amazon. The process is illustrated in figure 4.

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Amazon now ships to more than countries. This was eating into their profits. By selling products or services, which are privileged to a certain number of manufacturers the negotiation might become complicated. II-Conclusions and Recommendations 1.

He served on the state senate until when he was elected to the United States Senate.

On the other hand, Amazon is one of the biggest players in the world markets with many years of experience, endless resources, tremendous know-how and a high buyer loyalty, which is strengthened by global advertising, an inimitable product differentiation and customer binding advantages through offerings like Amazonprime2.

Figure 3 shows how drop shipment works.

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Therefore it is inevitable there would have been a large number of returns. Business Development 3. They have also started to be a drop shipper where Amazon will handle inventory and shipping for other e-businesses.

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Due to the fact that Amazon offers free return slips and delivery, evaluations of former clients who bought the product, and an A-to-Z research paper on dtmf based home automation for their sales, prospective customers usually prefer not to buy from a small and unknown online store.

That is the reason why Amazon tried to create bonds to their customers via launching services like Amazonprime, which helps the clients to get their goods delivered faster and free of charge, and establishes a bond between the buyers and the company.

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Part II: As a result, the bargaining position of those suppliers is definitely strong. So they key challenge is to be able to deliver both. The main motive behind this move was to improve its logistics efficiency.

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Therefore they have begun to use a global trade management solution to provide customers with more information. Fourth stage logistic process They main benefit of this stage was that Amazon could expand its product categories while cutting cost incurred through shipping and operating their warehouses.

Therefore, shipping costs are lower or in some cases even free. By putting emphasis on the threat of substitute products or services a differentiation between conventional, local shops and other online retail offerings matters.

However, Jeff Bezos has seen the potential in doing this, as they have the experience and reputation in managing inventory and logistics, which other e-businesses find that hard to ignore.

Amazon is dominating the e-commerce sector, but according to eMarketer5 still 90 percent of the global retail is spent in conventional stores.

birchsidestudios.com: Marching Toward Profitability | Stanford Graduate School of Business

Since Amazon is one of the biggest players in this sector over decades, it is not likely that new entrants might replace it. On the other hand, there was no capital investment and no danger of suddenly having a warehouse full of outdated items.

Larger items would take up valuable space. After analysing the company more closely, we realized that Amazon is more interested in getting the products to their customers in the most efficient manner. Amazon will have to offer good customer service to its buyers.

Amazon Inventory Management Paper

Bibliography Saunders. Stockport Other e-businesses should consider outsourcing some of its activities so that they could direct focus towards their core activities.

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Nevertheless, Amazon needs to face disadvantages regarding its strategic choices. This broad product range also helps the business to distribute possible threats across several shoulders. The condition of the item you buy and its timely delivery are guaranteed and expenses are refunded, when violation of conditions cf.

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They started to offer the best prices promising to avoid any forfeiture in terms of quality. Amazon did this and was able to concentrate on other activities such as marketing its brand. After arriving at the fourth stage Amazon dissertation introduction tense faced with a major problem regarding their reverse logistics process.

International Business Game 4. Porter Further Analysis As we have mentioned above we have analysed and discussed the various stages that Amazon went through in terms of their business strategy, which also affected their logistics management. Figure 1.

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  2. On the other hand, there was no capital investment and no danger of suddenly having a warehouse full of outdated items.

The characteristics of the products that Amazon handles vary considerably. In the end, it is all about the pricing of products and that will become even more important in the future. Figure 2: Therefore, Amazon is tied to keep those payment terms, as a change might threaten its entire liquidity.

Abbildung in dieser Leseprobe nicht enthalten To sum up, in the competitive environment of online retailers it is fundamental to have the necessary capital requirements and to establish a high market share. When Amazon went from having no inventory to building warehouses, was primarily to grow their business as they wanted to offer a larger range of products to their customers.