Evolution of Amazon and its Impact on Australian Retail Sector

Running head: OPERATION MANAGEMENT
Operation management
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1OPERATION MANAGEMENT
Executive summary
The aim of this report is to discuss about the evolution of Amazon from being an online book
seller to the largest retailer in the world. In addition, the relation between their supply chain
process and the concept of globalization is also being discussed. It is identified that the integrated
supply chain process of Amazon is helping them to offer larger varieties of goods to the
customers. This report also discussed about the impact on the Australian retail sector due to the
long term presence of Amazon. It is concluded that that Australian retail sector will have both
positive and negative impacts in the long term.

2OPERATION MANAGEMENT
Table of Contents
Introduction......................................................................................................................................3
Journey of Amazon..........................................................................................................................3
Globalization and operation management of Amazon....................................................................4
Effectiveness of the e-commerce over traditional process..............................................................6
Long term implications of Amazon in Australian retail industry....................................................7
Conclusion.......................................................................................................................................8
Reference.......................................................................................................................................10

3OPERATION MANAGEMENT
Introduction
In the recent time, Amazon created a huge stir in the global retail market with their online
based services. With the growing popularity of the online marketplace, the major challenge is
being faced by the brick and mortar stores in offering the convenience to the customers.
However, on the other hand, there are number of factors being faced by Amazonas well, in order
to gain the market leadership position as they are now (Rotem-Mindali and Weltevreden 2013).
Reviewing these factors will help to gain an understanding about the work process of
Amazonand the ways they are gaining competitive advantages over others.
This report will discuss about the journey of Amazon from being a book retailer to
offering almost everything in the world. In addition, the operation management process of them
will also be discussed along with the effectiveness of them in customer management. Lastly, this
report will also discuss about the implications of Amazon in the Australian retail industry.
Journey of Amazon
There are number of factors being initiated by Amazon in becoming the largest retailer in
the world. One of the major factors is offering greater reach and affordability to the customers.
This is due to the reason that at the initial stage of their operation in 1998, Amazon placed itself
as the largest book store in the earth, which denotes that they are targeting the larger market from
their very first stage. Moreover, in the initial stage of operation of amazon, internet service was
not popular as it is today and hence their presence was limited (Cao 2014). However, with the
emergence of the internet boom across the world, this online site of Amazon got the much
needed traffic and popularity, which helped them to cater to larger segments. This is further
complemented by their business strategy. As stated by Jeff Bezos, founder and CEO of Amazon,