Analysing Key Business Activities of Amazon Company
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This report analyses the key business activities of Amazon company including logistics, supply chain, marketing, and more. It also recommends alternative products and services that Amazon can provide in the future.
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Table of Contents Introduction:.....................................................................................................................................3 MAIN BODY...................................................................................................................................3 Analysing the key business activities of Amazon company:.....................................................3 Recommending alternative product and services that amazon can provide in future:...............7 Conclusion:......................................................................................................................................7 References........................................................................................................................................8
Introduction: The term business activities are termed as the varied type of functions undertaken by company in order to accomplish short as well as long term goals and objectives. The business activities of the organisations are crucial in order to attract large number of customers by practising effective marketing as well as promotional activities. For this individual report Amazon company is taken into consideration. The organisation is the American multinational company founded by Jeff Bezos in the year 1994. The company deals in variety of services as well as products such as it provides an online web-stream platform known as Amazon Prime for the customers to enjoy web-series as well as TV shows at any time. This report will highlight the main business activities of the amazon business. In addition to this, the report will also be able to recommend the type of product and service the company can launch in future to increase their product portfolio. MAIN BODY Analysing the key business activities of Amazon company: The amazon company is considered as the world's most valuable brand in the E- commerceindustry,consumerelectronicsindustry,entertainmentindustryaswellas supermarket industries of the world. The company provides wide range of services and products to its customers such as Amazon Alexa, Amazon App-store , Amazon prime video and much more. The company runs under the leadership of Jeff Bezos who has successfully established the company as the best global companyproviding wide range of products and services as well as also considered as the best place to work. In relation to this, the company is also recognised as
one of the most customer centric company in all over the world (Smits and Nikdel, 2019). Moreover, the company is committed to adopt best technologies in market in order to fully diversify the experience level of customers. The business activities of Amazon company has certainly supported the firm to become one of the most innovative as well as wealthier organisation of the world. The Key activities of Amazon is discussed below: Logistics and supply chain: The amazon undertakes usage of various transportation services in order to effectively deliver their products to the customers. The logistics services of the amazon firm includes the following: Amazon Air: The amazon undertakes its logistic activities by using amazon air services to transport its products. The amazon practices this type of air service in order to deliver products in large amount of quantity to the retailers as well as wholesalers(Colangelo, 2018). Amazon Flex: The amazon company also uses a smartphone app known as amazon flex in order to effectively provide products to the customer. This transportation service supports the individuals to becomecontractors of the company for delivering goods to the customers. This allow the individuals to supply the products from their personal vehicles without wearing any uniforms. This supports the amazon firm to delivergroceries in the fast manner as well as to local stores that are in contract with amazon firm. Amazon logistics: In this type of logistics, the company hires the small business to act as an amazon contractor basically known as Delivery service partners. These individuals deliver the products of the organisation to the customers by wearing the uniform of the amazon brand. Investing to adopt newer technologies: The other main business activity of the amazon is to identify and analyse the newer technologies in the market. This practise supports the multinational company to evaluate current technologies in order to find out whether the new technologies can promote the further development of their services as well as applications or not. For instance, the introduction of new technology related to machine learning as well as Artificial Intelligence has assisted the firm in developing completely new range of services such as Amazon Alexa device. In addition to this,
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the investments in newer technologies also help the firm to effectively maintenance the security as well as maintenance of the different applications in the most appropriate manner(Dumaine, 2020). Managing effective supply chain process: The amazon company lay its focus on using different type of distribution channels which consists of cross-dock centres, delivery stations , sortation centres as well as fulfilment centres. The company registers 75 fulfilment centres and 25 sortation centres in the world. The supply chain process of amazon is very systematic in nature as employees of the organisation held responsible for maintaining the efficiency related to performance of their tasks. The employees of the firm perform perform tasks such as unpacking the incoming products as well as examining their quality. In relation to this, the employees are also responsible forplacing the products for storage in warehouses as well as recording the location of each and every products. Along with this, the employees of the firm are also accountable for sorting goods from warehouse with the help of computer recorded locationsand then finally ship them to the sellers as well as customers. The amazon company practises cutting edge technology in order to manage supply chain process effectively by recording the location of goods with the help of hand held computers as well as with the help of new technology known asAmazon Robotics(Chen and et.al., 2019). Marketing activities of Amazon: The amazon undertakes the use of many ways in order to sell the products as well as services to the customers in the most cost effective and profitable manner. The company practise its marketing activities by taking use of three sales boosting channels that are discussed below: Social media platforms:The company promotes their products and services by posting new launch of products and services on the social media platforms such as Facebook, Instagram, LinkedIn. This assist the company to successfully enter into the social medial audiences as well as linking the customers with the companies products and services by sharing links on the social media pages. Flash selling of new products: This is also considered as effective marketing strategies used by amazon company. In this, the amazon sets a deadline for the purchase of their exclusive newly launched items at the
most cost effective prices. This strategy motivated the customers to register their name on time in order to get a heavier discounts on the new products as well as services(Amazon, 2018). Easy finance options: The amazon firm also provide to its customer the facility of simple finance options for the customers who are unable to pay a lump sum amount on the time of purchase. This facility is considered as the effective marketing techniques as this attracts the large number of Lower level as well as middle level customers who can't afford to pay on lump-sum but are comfortable to pay in easy monthly instalments. Special offers: The amazon starts special offer days that lasts for a limited time period likely 2-3 days. In this marketing strategy, the firm provides heavy discounts on its newly launched as well as existence product range. This support the company to effectively draw attention of large number of customers in order to grab that limited time frame offers. Thus, this promotional activity assist the company to sell larger number of products in just a limited time period(Rikap, 2020). Using E-mail: The amazon company also practise the E-mail marketing activities as its marketing activity. The amazon use this technique in order to thanks customer for the purchase, asking customers to post their review about product or service as well as even providing the information about discount offers. In relation to it, this strategy also allow the company to make personalised product recommendation to the customers on the basis of their purchasing history. This helps the organisation to retain their existing customers more effectively. The following explanation shows portfolio of the amazon products: Product portfolio of Amazon: The amazon company provides a number of diversified range of products such as apparel, baby products, consumer electronics, beauty products, gourmet food and groceries. In addition to this,theorganisationalsoprovideshealthandpersonalcareitems,industrialrelatedto equipments, kitchen items, artificial jewellery and watches. Moreover, the amazon company also provide the customers with musical instrument , sporting goods, tools, automotive items as well as toy and game products. Apart form the diversified products, the company also provide their customers with a wide range of entertainment services for example: Amazon Prime for watching Movie shows, Fire tablets for watching TV shows, Amazon digital softwareand video games,
Music Unlimited, Amazon fire TY as well as Amazon studios. In addition to this, the services of amazon also includes Kindle store, Amazon study and app-store. Furthermore, the amazon company has recently launched a new robotic service known as Astro. This is powered by the Alexa smart technologies which can help the users to easily monitor people and security at home when they are away from their house. This technology transfers message to the owners in notification format if something unusual happens in their house(White, 2021). Recommending alternative product and services that amazon can provide in future: The amazon provides their customers a diverse range of products and services that comes in the category of entertainment industry, toy industry, tools industry, fashion industry and many more. In order to cater with the needs of medical field, it is recommended that the company should provide a platform for selling medicines related to the prevention of health diseases such as diabetes or cardiovascular type of diseases especially to the India. As India has the second largest diabetic patients in the world. This new offering can lead the firm to effectively meet with the demands of the diabetic customers by delivering all necessary drugs at their doorsteps. Moreover, this initiative will support the firm to further enhance their profitability in the market as well as will also help firm to improve its competitive edge globally(Oliveira and et.al.., 2021). The amazon can also launch an app regarding health consultation services. The amazon can hire experienced and well qualifieddoctors in order to provide medical consultation services to the customers. This will support the customers to seek medical advice just by sitting at home or anywhere. In relation to this, this app can also a provide a proper medical guidance to the customers. This will be a great opportunity for the organisation to cover a large number of customers as due to pandemic the preference of customer has greatly transformed regarding taking online consultation without visiting hospitals for seeking medical consultation. This can support the firm to enter into new industry and can be an advantageous opportunity for the firm in order to enhance the monopolistic power in the market(Sullivan, Rennstam and Bertilsson, 2019). Conclusion: It has been concluded from the above report that effective business activities are the foundation stone that decides how far the company can reach in the globalised market. It was
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also evaluated the business activities are crucial in order to attain attention of customers as well as improving competitive advantage of the business. It was analysed that the amazon follows different range of business activities related to supply chain, logistics, marketing as well as promotional strategies that supported the firm in gaining a huge popularity in the E-commerce industry as well as improved performance. In addition to this, it has been evaluated that the amazon should include medical drugs in the range of their product range as well as should also provide an online platform in order to consult visually with experienced doctors. References Books and Journal Amazon, E.C., 2018. Amazon ec2.lÃnea]. Available: https://aws. amazon. com/es/ec2. Chen and et.al., 2019, July. A full-spectrum blockchain-as-a-service for business collaboration. In2019 IEEE International Conference on Web Services (ICWS)(pp. 219-223). IEEE. Colangelo, S., 2018. Big Data and the implication for International Marketing. The Amazon case study. Dumaine, B., 2020.Bezonomics: How Amazon is Changing Our Lives and what the World's Best Companies are Learning from it. Simon and Schuster. Oliveira and et.al.., 2021. The role of regional administration on the promotion of social responsibilitypractices:acasestudyintheamazonregion.IntegratingSocial Responsibility and Sustainable Development: Addressing Challenges and Creating Opportunities, p.377. Rikap,C.,2020.Amazon:Astoryofaccumulationthroughintellectualrentiershipand predation.Competition & Change, p.1024529420932418. Smits, R. and Nikdel, E.W., 2019. Beyond Netflix and Amazon: MUBI and the curation of on- demand film.Studies in European Cinema,16(1), pp.22-37. Sullivan, K., Rennstam, J. and Bertilsson, J., 2019. Auditioning for Amazon: The dark side of place branding and corporate domination. InThe dark side of communication: 2nd International and interdisciplinary conference on Discourse and Communication in Professional contexts. White, J., 2021. Amazon wins bid to overturn EU state aid ruling.International Tax Review.
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