Amazon Case Homework Student Version
Assignment Questions:
1. What is Amazon’s business and what factors are critical to its success? [list or table]
Amazon’s Businesses
Critical Success Factors
use of its supply chain management
It is one of the fastest grows parts
add more rows as needed….
Use the management processes to service the eCommerce nedds instead of the normal commerce (new technology)
Easy to manage.
add more rows as needed….
Offering products and books first in different categories, and then provides with other different categories like DVDS.
Customers have more choices.
add more rows as needed….
Amazon keep the inventory in a low price
Offering products in a relatively competitive price.
add more rows as needed….
2. What challenges did Amazon face when it first entered the marketplace? [list]
a. Amazon’s early history was marked by startling losses and lots of red ink.
b. Orders would be filled from a new kind of facility, a fulfillment center.
c.
d.
e.
f.
g. add more items as needed…..
3. What information is required by Amazon to transact, to manage, and to innovate? [table]
Level of Information Processing
Information Needs transacting Recorded revenues of $17.09 billion dollars in 2013.
The fulfillment centers cost about $50 million apiece.
Amazon has been able to increase the capacity of the Fernley warehouse by 40 percent.
Cost of operating has fallen from nearly 20 percent of Amazon’s revenues to less than 10 percent.
add more rows as needed…. management and control
Disintermediate the retail process
New facility
Efficiently decrease the operational error.
Build strong relations with their suppliers.
add more rows as needed…. innovation and corporate learning
Use information to run business.
add more rows as needed….
4. What are the challenges associated with running a fulfillment center versus the warehouse for a brick and mortar store chain (hint: consider Amazon’s critical success factors)? [table]
1. What is Amazon’s business and what factors are critical to its success? [list or table]
Amazon’s Businesses
Critical Success Factors
use of its supply chain management
It is one of the fastest grows parts
add more rows as needed….
Use the management processes to service the eCommerce nedds instead of the normal commerce (new technology)
Easy to manage.
add more rows as needed….
Offering products and books first in different categories, and then provides with other different categories like DVDS.
Customers have more choices.
add more rows as needed….
Amazon keep the inventory in a low price
Offering products in a relatively competitive price.
add more rows as needed….
2. What challenges did Amazon face when it first entered the marketplace? [list]
a. Amazon’s early history was marked by startling losses and lots of red ink.
b. Orders would be filled from a new kind of facility, a fulfillment center.
c.
d.
e.
f.
g. add more items as needed…..
3. What information is required by Amazon to transact, to manage, and to innovate? [table]
Level of Information Processing
Information Needs transacting Recorded revenues of $17.09 billion dollars in 2013.
The fulfillment centers cost about $50 million apiece.
Amazon has been able to increase the capacity of the Fernley warehouse by 40 percent.
Cost of operating has fallen from nearly 20 percent of Amazon’s revenues to less than 10 percent.
add more rows as needed…. management and control
Disintermediate the retail process
New facility
Efficiently decrease the operational error.
Build strong relations with their suppliers.
add more rows as needed…. innovation and corporate learning
Use information to run business.
add more rows as needed….
4. What are the challenges associated with running a fulfillment center versus the warehouse for a brick and mortar store chain (hint: consider Amazon’s critical success factors)? [table]