Impact of Technology on Amazon's Business Operations

This article explores the impact of technology on Amazon's business operations, including its use of AWS (Amazon Web Services) for effective online bookstore operations. It also discusses Amazon's competitive advantages over traditional high street booksellers and the impact of e-books on the sales of hardcopy books. Additionally, it highlights Amazon's reliance on digital products and services to drive sales. References are provided for further reading.

Management
Business technology and information system
3/30/2019

Management 1
Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................2
Question 3........................................................................................................................................3
Question 4........................................................................................................................................4
Question 5........................................................................................................................................4
References........................................................................................................................................7

Management 2
Question 1
Technology has offered the platform to the Amazon Company with the motive to grow and
develop the business since the year 1994. The technology is contributing effectively in
expanding the business operations of Amazon across the world. If the original bookstore had
been started 10 years before the beginning of internet then the company would have operated the
business through the shops or library. The physical bookstore and library is the way through
which the company can promise to the customer for delivery any book to the reader. However, it
would have led to the challenge of making the books available to the customers in the global
market including Australia. The operations of Amazon before the emergence of internet also
include tie-ups with the college and schools to whom they can offer the books (Head, 2017). This
way makes the company to operate the operations effectively in the absence of internet.
The operations of book shop and library requires a lot of capital with the motive to manage the
stock as well as the resources in order to meet the needs of the customers. This might affect
operation of Amazon because in online business they need to be focused on technology. In
addition, this technology provides the benefit to the company in enhancing the sales.
Question 2
The company have the numerous competitive advantages over its traditional high street
booksellers. Some of them are discussed below -
 Huge customer base: - Amazon deals the operations through online mode due to which
it has wide the customer base that purchase the products from the company as the
company has its operations across the world. The customers of Amazon online books

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include book readers, students, lecturers, writers, and many others. While comparing it
with the high street booksellers, there is presence of only limited customers that are
present within the location (Garner, 2018). This shows the applicability of the concept of
Rivalry among the company. This is very clear that company has less competition from
the high street booksellers.
 Mastery of logistics: - Amazon has an effective distribution system from the beginning
of the company (Head, 2017). The customers who are looking for the books just need to
place the order on the website and they get the delivery of books at home in next
promising days. In addition, they have the all the collection with them which allows them
to offer wide range. However, in the traditional high street booksellers the customers
need to go to the place or shops for purchasing the books and customers might not get
latest books. Thus, this shows that company is able to manage their supplier as there is
low bargaining power of suppliers for Amazon Company.
Question 3
Amazon Company makes use of the technology system with the motive to ensure that its online
bookstore operations can be done effectively. The technology system that is used by company is
AWS (Amazon Web Services). This technology is a comprehensive evolving the updates cloud-
computing platform that is offered by Amazon Company. This technology benefit to the users as
this helps them in conducting the business operations at low cost. AWS is more secure than the
hosting of company for its own storage or website. The technology supports the company to
conduct operations of bookstore that involves taking the order from customer, sourcing the book
from the suppliers then getting it packed for the customers and delivering it on the door. Thee

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technology helps Amazon to successfully take the orders from the customers. Further, it allows
the company to effective tracking and monitoring of the other with the suppliers until the time it
reach to the final users (Budzinski and Köhler, 2015). Thus, the effective and timely delivery of
the products of Amazon is possible because of this system.
Question 4
E-books have both positive as well as the negative impact on the hardcopy books. This is found
that e-books are instant due to which most of young generation prefer e-books. In addition, these
books are more portable than the print books that affect the sales of books in the market.
However, it is found that sales of the printed books are increasing while e-books fell as readers
find that physical books are sign of relief (Reimers and Waldfogel, 2017).
Amazon resits the introduction of the e-books that is clear, as it is able to make the sales of print
books more. In addition, this has been found that the company offers the discount on the print
edition when it often ends up undercutting the high price of e-books (Gilbert, 2015). Thus, this
shows that the company give preference to more of print books rather than to e-books.
Question 5

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Amazon Company makes use of the advance technology with the motive to enhance its
operations and to improve the online sales of products. This has been found that company is less
reliant majorly on the online sales of traditional physical goods that include books, DVDs,
clothes, electronics, and many others. The company update the products and services to meet the
needs of the customers (Day and Gu, 2019). This has been found that digital products are
increasing and due to which the company is dealing in new products.
(Source: Day and Gu, 2019)
This image shows the sales of the different categories that majorly include the traditional
physical goods. However, some of the categories include the new goods whose sales are
increasing. For instance; sales of book, music, and videos is high for the company, which include
the e-books, new music, and video album subscription through Amazon prime. The subscription
of the Amazon prime is the way through which the people like to watch videos, music, short
films, and many others instead of making the purchase of traditional physical goods. Therefore,
these are considered services by Amazon are considered as the major driver of the sales of
company (Cain, 2017).

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In addition, the below given image support the same which shows that there is increase in e-
readers of company. Thus, this can be said that company is now less reliant on traditional online
sales of physical goods.
(Source: Day and Gu, 2019)

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References
Budzinski, O. and Köhler, K.H. (2015) Is Amazon The Next Google?. ORDO, 66(1), pp.263-
288.
Cain, S. (2017) Ebook sales continue to fall as younger generations drive appetite for print
[Online]. Available from: https://www.theguardian.com/books/2017/mar/14/ebook-sales-
continue-to-fall-nielsen-survey-uk-book-sales [Accessed on 31st March 2018]
Day, M. and Gu, J. (2019) The Enormous Numbers Behind Amazon’s Market Reach [Online].
Available from: https://www.bloomberg.com/graphics/2019-amazon-reach-across-markets/
[Accessed on 31st March 2018]
Garner, B.A. (2018) Amazon in the Global Market. Journal of Marketing and
Management, 9(2), pp.63-73.
Gilbert, R.J. (2015) E-books: A tale of digital disruption. Journal of Economic
Perspectives, 29(3), pp.165-84.
Head, B. (2017) The amazon effect. Company Director, 33(10), p.22.
Reimers, I. and Waldfogel, J. (2017) Throwing the books at them: Amazon's puzzling long run
pricing strategy. Southern Economic Journal, 83(4), pp.869-885.