Amazon case study
-
Upload
sarin-thazhathil -
Category
Leadership & Management
-
view
582 -
download
20
Transcript of Amazon case study
![Page 1: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/1.jpg)
SARIN RAJU
CET,TRIVANDRUM
AMAZON CASE
![Page 2: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/2.jpg)
LEVEL ANALYSIS
1. PRE-STRUCTURAL LEVEL
WORLD’S LARGEST ONLINE STORE
2. UNISTRUCTURAL LEVEL
WIDE GEOGRAPHICAL EXPERIENCE-5
INTERNATIONAL STORES-’WHOLE WORLD
IS MARKET PLACE’
![Page 3: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/3.jpg)
3. MULTISTRUCTURAL LEVEL
BUYER SALE APPROACH,MULTI-LEVEL E-
COMMERCE,MULTIPLE PRODUCTS AND
CUSTOMER TRAFFICKING
4. RELATIONAL LEVEL
MULTI-TIER INVENTORY MODEL-VERY LOW
FIXED COSTS
5. OUT OF BOX
LEVERAGED ON THE STRENGTHS OF BRAND
VALUE AND BUSINESS MODEL
![Page 4: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/4.jpg)
QUESTIONS
AND
ANSWERS
![Page 5: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/5.jpg)
1. Why is Amazon building more warehouses as it grows? How many
warehouses should it have and where should they be located?
Answer: As it grew, the company added warehouses, allowing it to react
more quickly to consumer orders,
It is clear that when the no of warehouses increase the response time
decrease, and when the no of warehouses decrease the response time
increase. So by increasing the no of warehouses and locate them near the
customer will improve response time .
Amazon has about 50 warehouses, 20 in U.S and rest 30 in Canada,
France ,Germany , Italy , United Kingdom , China , and Japan.
![Page 6: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/6.jpg)
2. What advantages does selling books via the internet provide over atraditional bookstore? Are there any disadvantages to selling viainternet?
Answer:
Now a days world has become global village that’s why there is a need tostart business via e-commerce as we know e- business affects customerservice elements such as product variety, availability, customer experience,time to market, visibility, and return- ability.
Amazon offers a much larger selection of books than a typical bookstore.Offering the same selection at a retail store would require a huge locationwith correspondingly large amount of inventory.
Disadvantages:
Response time
Transportation cost
![Page 7: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/7.jpg)
3. Should Amazon stock every product it sells?
Answer: No …. It should stock those products which are in higher demand.
![Page 8: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/8.jpg)
4. What advantages can bricks-and-mortar players derive from setting
up an online channel? How should they use the two channels to gain
maximum advantage?
Answer: The performance of traditional bookstore supply chain can be
improved significantly by combining the strength of the retail and online
channels. It is important to realize that the benefits of aggregation are most
significant for low- demand books whose demand is hard to forecast.
The book supply chains should be structured so that retail outlets carry
many copies of best sellers for customer purchase and one copy of low
demand books to encourage customers to browse and make impulse
purchase. Terminals or internet kiosks should be provided so that
customers wanting to order low demand books that the bookstore can
offer.
This approach allows the supply chain to reduce inventories by
aggregating low demand books sold online while keeping transportation
costs low for best sellers sold at retail store.
![Page 9: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/9.jpg)
5. What advantages/ disadvantages does the online channel enjoy in sale
of shoes/ diapers relative to a retail store?
Answer:
Advantages:
1. Time to market
2. Flexible pricing, portfolio, promotions
3. low facility cost
Disadvantages:
1. Transportation cost
2. Response time
3. IT cost
![Page 10: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/10.jpg)
6. For what products does the online channel offer the greater advantage
relative to retail stores? What characterizes these products?
Answer:
Online channel offer the greater advantage for those products having large
product varieties.
For example; Netflix offers a much large selection of movies than any video
rental store, offering the same selection at a store would require a huge
location with correspondingly large amount of inventory.
![Page 11: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/11.jpg)
AMAZON BASIC SUPPLY
CHAIN
![Page 12: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/12.jpg)
![Page 13: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/13.jpg)
Supply chain drivers
Facilities:
warehousing and order-fulfillment for third-party
sellers
49 fulfillment centers across globe
United States – 14 spread across 14 states
Canada – 2
France – 3
Germany – 7
Italy – 1
United Kingdom – 8
China – 8
Japan – 6
![Page 14: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/14.jpg)
![Page 15: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/15.jpg)
TRANSPORTATION
![Page 16: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/16.jpg)
Transportation
rely primarily on national parcel couriers
UPS, FedX
Own logistics network
![Page 17: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/17.jpg)
INVENTORY
![Page 18: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/18.jpg)
BOOK SHELF OF AMAZON
![Page 19: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/19.jpg)
Inventory
![Page 20: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/20.jpg)
![Page 21: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/21.jpg)
SOURCING
![Page 22: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/22.jpg)
![Page 23: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/23.jpg)
PRICING
![Page 24: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/24.jpg)
Pricing
Amazon does make millions of price changes
daily
HIGH- LOW PRICING
HIGH PRICE FLUCTUATIONS
![Page 25: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/25.jpg)
![Page 26: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/26.jpg)
InformationAmazon web service: allow partner retailers, the individual sellers and developers to advertise their products through Amazon.com by building their web based applications in a reliable, scalable, and low cost way.
Simple storage service: designed to make web-scale computing easier for the business partners and developers by web service interface to keep and receive any data, any time, from anywhere.
Smart analytic search: allow detecting and decreasing the examples of fraud in Amazon web site by analyzing the behavioral patterns of fraudsters and designing the predictive scores.
![Page 27: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/27.jpg)
INFORMATION:AMAZON
SERVERS
![Page 28: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/28.jpg)
INFORMATION :AMAZON CLOUD
STORAGE
![Page 29: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/29.jpg)
STRATEGIC FIT
![Page 30: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/30.jpg)
AMAZON STRTEGY ANALYSIS
![Page 31: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/31.jpg)
Strategic fit
Competitive strategy
Respond to wide range of demand
Fulfill orders in short lead time
Meet high service level
Supply chain strategy
Both cost effective and responsive
![Page 32: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/32.jpg)
Facility: more towards centralization
Inventory: high
Transportation: Faster
Information: high investment
![Page 33: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/33.jpg)
Cyclic view
![Page 34: Amazon case study](https://reader031.fdocuments.us/reader031/viewer/2022031604/55a5c4091a28ab58588b4600/html5/thumbnails/34.jpg)
THANK YOU