Amazon Case Analysis

Amazon Case Analysis

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Amazon Case Analysis

Introduction

            Among the most popular online retailers in the world is Amazon. Over the years, Amazon has sold over forty categories of goods ranging from electronics books, jewelry, mechanical parts and much more. Moreover, the company incorporates the use of modern technology in business that involves the application of e-commerce systems that enable its diversity. With these improvements, Amazon is able to accelerate its base in logistics, search engine technology, and an all round internet advertising platform.

Issues

            As much as Amazon profits from its diverse sales, the retailer faces some prudent issues that pose a threat to business. A major problem faced by Amazon is the expansion of its cloud computing system that manages and stores information regarding the products sold and its customers. With the growing nature of business by the retailer, there is impending need to develop advanced strategies to store and manipulate the vast amount of data that concentrates their cloud. Because of cloud congestion, online access to the Amazon Web is lowered therefore making online purchase strenuous. Most customers regard this system by the retailer as a major issue since they desire a swift and accurate system.

As the business trend changes and many companies adapt to the modern trends such as e-commerce, the system develops a competitive aspect in carrying out business in the market. Local firms that offer similar goods and services as that of Amazon will be at a competitive advantage as compared to the global retailer. Similarly, the methods of payment through Amazon involve the use of a debit card. This is quite an issue when dealing with remote areas. Customers will prefer to order locally through the online platform arguing that it will be easier to access and negotiate terms in case of any anomalies. Furthermore, deliveries through the local market will be fast and certain considering the location of the retailers.

Recommendations

The increase in data owing to improved technology is unavoidable. Systems store and manipulate large amounts of information as they are received. This is a major concern for most retail stores that consider eCommerce their major income generation source. However in the case of Amazon, an important recommendation following the analysis of the vast amount of data they send and receive in a day prompted the development of a system through which data packets and files be compressed. With this system, the retailer can manage the amount of data that is accessible by the consumers and the retailer staff. To achieve this, Amazon recommends strategic improvements in the information technology systems that would enhance compression and conversion of data.

To place Amazon at a competitive advantage over the local online retailers, it is important to consider a change in the business patterns carried out globally. One of the major recommendations made by Amazon was the development of branch retailers that offered similar goods and services as that of the headquarter retailer. Distributing these branches across different areas will render access easier. Deliveries would take a shorter time before reaching the customer. Moreover, the branches would enable a physical mediator in case of anomalies in the goods or delivery. Providing a platform where people who do not use debit cards can pay for goods was also one of the major recommendations to improve sales. The recommendation was to avail the cash-on-delivery system to the customers.