Operations Management and Decision-Making Models [Amazon]

Running head: AMAZON
Operations Management and Decision-Making Models
[Amazon]
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1AMAZON
Executive summary
The main purpose of this study is to highlight the potentials of Amazon and its long-term
implication on the Australian retail industry. The company has moved from just a small
bookstore to ‘store everything' for its master-class supply chain management and its ability to
keep the prices lower for a longer period of time. It had failures in Canada and China. In China,
it lost to Alibaba in a direct confrontation. In Canada also, Amazon could not make an impact
and failed to dominate the market. However, the study identifies that the company has entered
positively in Australia. The introduction of ‘Prime’ membership at a cheaper annual cost and a
huge investment for long-term just show all the possibilities for Amazon in the Australian retail
market.

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
1. Amazon's Journey....................................................................................................................3
2. Aspects of Amazon's operations management........................................................................5
3. E-commerce as replacing the in-person shopping experience.................................................6
4. Long-term implications of the increased presence of Amazon to the Australian Retail
Industry........................................................................................................................................8
Conclusion & Recommendation......................................................................................................9
References......................................................................................................................................11

3AMAZON
Introduction
The secrets behind Amazon’s success are its patience, continuous innovation and
relentless investment to cut up the competition. Innovation has been one of the success factors
for Amazon and the impact is evident in the form of drones, robotics and the other kind of
autonomous vehicles being used to improve the supply operation. Acquisition of Whole Foods is
another strategic move which Amazon will use to enter the bricks and mortar segment of the
market (Milano, Chatterjee and Fedigan 2016). Amazon is not allowing others to dominate the
company on the e-commerce platform. Now, an entrance to the bricks and mortar may cause a
bigger destruction to major retailers in particular. This study is aimed at answering a few
questions related to Amazon’s journey so far and the long-term implications of its strategic
moves.
Discussion
1. Amazon's Journey
There can be ample amount of reasons behind Amazon’s dominant position in the retail
industry as every single strategy is important in moving towards the vision and goals. From the
skilled workforce to efficient human resource management and to the effective marketing
communication strategies all contribute to making an impact on the marketplace. However, there
are some specialties which remain specific to a firm and are called its core competencies (Kabue
and Kilika 2016). In a likewise manner, an effective management of the supply chain is specific
to Amazon. Supply chain management is one of its core competencies which have positioned the
company from just an online book retailer to ‘everything store’. The way Amazon had traveled
in to become a dominant and formidable force is significantly due to its highly efficient and