Amazon Case Study 11

Amazon case study Amazon’s vision is to offer Earth’s biggest selection and to be Earth’s most customer-centric company. The key for Amazon’s rapid growth between the year 1997 and 2004 is the focus on making all aspects of the business measurable. The internet and communication infrastructure in Amazon allows data collection from every last click and twitch of the mouse to per minute site revenue upper/lower bounds, which is the basis for data driven automation that includes: customer channel preferences; managing the way content is displayed to different user types and also advertising through paid search.

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In this way Amazon catches the active seller customers better than other e-retailing companies. To retain customer’s loyalty, Amazon. com has improved distribution and order fulfilment. The fulfilment promise includes: presentation of the latest inventory availability information, delivery date estimates and options for expedited delivery, as well as delivery shipment notifications and update facilities. For all the information provided, it’s the enterprise information systems that guarantee the accuracy, availability and timeliness.

The focus on customer has translated to excellence in service with the 2004 American Customer Satisfaction Index giving Amazon. com the highest customer satisfaction score ever recorded in any service industry then. Customer preference as the operational level of business has proven to be a great success for Amazon, which also laid the basis for its service differentiation advantage, key for company’s position in the industry.

Apart from the customer-centric strategy, Amazon is also known for its partnership strategy. Amazon’s ‘Syndicated Stores ‘programme enables other retailers to sell products online using the Amazon user interface and infrastructure; ‘[email protected]’ program enables third party merchants to sell their products via Amazon; Affiliates programme facilitated formation of partnerships with smaller companies.

All above in return consolidate Amazon’s strength in different sectors and at the same time foster product promotion and distribution. Partnership strategy , as of the tactical and sometimes strategic level ,gives Amazon cost advantage by enabling buying at the lowest price. http://en. wikipedia. org/wiki/Competitive_advantage http://www. enotes. com/business-finance-encyclopedia/decision-making http://en. wikipedia. org/wiki/Porter_five_forces_analysis

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