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Reinventing Ecommerce Case Solution & Answer

Reinventing Ecommerce Case Solution

Introduction:

Amazon is one the leading online retail company that started its journey by selling books using the rapidly growing information technology in e-commerce where Jeff Bezos the founder of Amazon focused on the customers. He emphasized on the making Amazon not just an online store for books and have a public company so that it could have physical sore. Bezos wanted to go after and attract all the opportunities that were present there at that time which didn’t come easy and required a lot of resources to be invested in the plague to attract the targeted segment. As the company went public in 1997, the quantity of human resources that was available in amazon advanced with its distribution range increased and amount of selling the books increased. With that on mind, it started to focus on the more on the accessibility of the books, rather on competing on the price with its competitors. With Amazon being customer centric gave the hard time to the retailers which competing with it at that time, cause as they started to use digital systems to increase their sales, face a lot of difficulties as Amazon was already being by following the consumer centric strategy. With Amazon starting to capture the diverse companies which started in 1998, by expanding its product line range and adding more variety of services like cloud computing services (i.e. Amazon Web Services) and tangible products like Amazon Kindle that was a tablet having e-book reader in which customers had the access to all the books that were available on that. While Kindle started growing rapidly, amazon started to invest again in developing the most efficient way of distributing with Amazon Prime which guaranteed the fats delivery of products within two days. Amazon prime which was launched in 2004 and by 2014 the products increased from 1 million to 120 million, where subscription per year as $79 per year which lead to huge amount of profit and generated a lot of profit for Amazon. Because of which it started growing more by expanding it so it would become more customer friendly. Customers were really impressed by the introduction of Prime Instant Video that they were ready pay more $100 to access more of their services who actually invest more than normal amazon customer would pay. The fast pace delivery service gf amazon has played a significant role for its success. As wanting delivering faster than competitors, amazon has to rely on the more services of shipping companies like FedEx and UPS. With the introduction of Amazon Prime it was significant to have the fulfillment and distribution done well. As traditional bought goods and product were bought by amazon, products being purchased online as it saves time, it was essential to have those product delivered on time and as soon as possible while having suppliers close to the customers. Amazon has spent large amount on the lobbying just to have government support to create an environment where amazon can serve the product without being worried about the government taxes on online sales, transportation safety and data protection and intellectual property. Amazon has done intensive and extensive amount of research for the sole purpose of getting the knowledge of the preferences and taste of the customers and what they like and what they wouldn’t prefer. And promising that customer data will never be shared with third part. Through all that, Amazon has created a safe place and environment for the people that’s why earned trust of its shopper when it was about their privacy. Clearly giving them a lead and a chance to take more risks by introducing more rules and laws regarding Amazons policy.

With all that Amazon was the first company that started online with interest in B2B, with focused on customers and it’s no wonder why it achieved the status it’s claimed to days it was always concentrating on availability of its product to customers whenever it was needed.

Overview of Firms Competitive Advantage:

Amazon focused on the real time innovating since the staring of its venture. And it turned out to be major advantage in this completion world.

Amazon had its competitive advantage from the start with it being the first online store for selling books and being customers centric and the focusing on the overall growth of the company as a whole. From doing that it actually became the one of the most assertive retail store giving the others solid competition and not giving them any chance to win from Amazon.

Amazon build its roots by seizing the opportunities and the companies that had just started growing in 1997 and by introducing the more services and tangible products like Kindle, which a catalog of books and as it was increasing. Amazon stated investing again on creating the fast paced delivery availability by introducing Amazon Prime which eventually became its major competitive advantage as it was really admired by the customers who were willing to pay more than they normally would and that lead to the vast amount of revenues.

The most congruent competitive advantage would be delivering the product at a fast pace to attract customers and build their trust in Amazon (Haris, 2009). The biggest competitive advantage of Amazon is that it doesn’t let any opportunity go for delivering their existing and new customers in any way possible. Amazon has had the ability to invest in new businesses from the revenue that was generated from the current business.

Having more than sixty distribution centers all across America and to make the delivery more effective by having customers and suppliers close to one another so the shipment could be done as soon as possible.

Problem Statement:

In this case study, recent interview by Bezos stated that they would introduced drone delivery services but there were some reasoning needed to be first like how the customers would react and are they willing to pay for it, or whether the government would allow it or not. Or whether amazon would by or make drones, or how will it launch it and what will be target market……………..

 

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