Mighty Amazon Essay

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Case Study: “Mighty Amazon” 1. What is Amazon’s business? Amazon started off as a first online bookseller building up a network of suppliers, which now grew into a biggest online retailer (selling almost everything from food to furniture) also having the most high tech warehouses in the industry. 2. What challenges did Amazon face when it first entered the marketplace? The first challenge faced by Amazon was building up the warehouses, which are expensive to both build/set up and operate. However the main challenge was the lack of development of Information Systems and warehouse processes (such as automatization of operations), which had to be developed by Amazon from scratch. 3. What role did Information Management play in turning things around? First of all, improved Information Management gave amazon a big competitive advantage, which can be determined from the numbers of turning inventory 20 times a year, which is at least 5 times more than the closest competitor in the industry. Constant development of automatization of warehouses dropped the operating costs for about 20%, saving Amazon a lot of expenses, thus increasing the value of shares, making the company more attractive for investors. Overall by improving efficiency, Amazon also improved it’s financial standing. 4. Amazon made a big emphasis on data analyses and warehouse operations excellence, which ultimately led Amazon to achieve 6 business objectives of Information Systems. * Excelled performance of warehouses. (High inventory turnover, automatization) * New products: constantly making connection with new suppliers, constantly developing Information Management and technology used. * Customer and supplier Intimacy: analyzing the data of each customer’s orders making further suggestions to the customers and getting to know them on a deeper level. * Improved

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