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Operation Strategies Adopted by Amazon - Desklib

   

Added on  2020-04-01

19 Pages4053 Words4016 Views
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Amazon2Operation strategies opted by Amazon1)IntroductionIn the late 2012, the company reported its first quarterly loss over the period of five years. The company has invested heavily in new distribution centres, launching daily deals on the site and the development of kindle. The founder Jeff Bezos knew that competition is very tough for the company and there are many other players in the market who are performing well enough. In 1994 after seeing the boom in the internet usage of near about 2300% Jeff Bezos left his highly paid job and started an online book store inside his rented house in Suburban Seattle (Teles and Coutinho, 2011). His online book selling company emerged as the world’s largest online retailer who deals in books, fashion, DVDs, apparels, furniture, electronics and health, and beauty. Amazon deals with four types of customers, which includes sellers, enterprises, final consumers and content creators. Amazon has designed its website consumer friendly by offering various options in size, color, brand, and price. The website is very easy to use and has been developed keeping in mind to cater the maximum needs of the consumer at one virtual portal. The Company’s mission statement is “Earth’s most customer centric company” (Teles and Coutinho, 2011)2)Amazon’s Operations strategies Goods and services design- organizational output design is covered in this strategic decision area of operational management. This is done primarily with the help of technologies. For example, the company ensures that its online retail services are in line with the requirements of target customers using the advanced communication and

Amazon3information technologies. It also supports the maximum operation of e-commerce (Teles and Coutinho, 2011).Quality management- the objective of this decision is to maximize the operational output in order to fulfill the customer satisfaction. For example, amazon always motivatesits employees to solve the problems and improve the business by creating new ideas (Teles and Coutinho, 2011).Location strategy- the accessibility of market and resources is considered in this strategic decision like their warehouses should be nearest to the location where the maximum customer base is available.Process and capacity design- the objective of this decision is to optimize the capacity and production process. Extensive automation is applied to streamline the business process. For example, the company’s main output is to receive the orders so it has automated the technologies to receive as many orders as possible. This approach highlights the importance of automation and other related technologies to enhance the capacity and process (Cassidy and Scott, 2002).Strategy and layout design- this decision area deals with the movement of information, material, and human resource. This objective is fulfilled with the help of efficient layout designs which is aligned with computer assisted programs. For example, in the warehouses, all the items are assigned as per the computerization policies. The layout is made for maximizing the shelf space and minimizing the aisles for achieving the optimal capacity and this is done without reducing the process efficiency.Supply chain management- this strategic decision is concerned with the streamline of supply chain management. Company does this through automating and enabling the

Amazon4buyers and suppliers to access some of its IT assets for example sellers streamline their supply with help of demand data available on the company’s online retail website, and buyers can track the order placed and can do all the communication with sellers through the data available on the website.Job design and human resource- HRD is the main focus of this strategic decision area. Company’s operation management uses a combination of third party employment agencies and in house employees. For example, workers from all these agencies fill the temporary positions of the company and are also evaluated if they are fir for the permanent position or not? Especially in their warehouses and fulfillment centers. Company’s recruitment process is based on the organizational growth.Scheduling- operation managers keep in mind the short term and intermediate schedules to ensure that all the resources satisfy market needs. In this strategic decision area company is fully reliable on suppliers to run its online retail business. For instance, suppliers need to access the company’s website in order to determine the demand level and streamline their delivery and shipping schedules accordingly.Inventory management- .under this decision company has to ensure the sufficient storage of inventory to meet the demand, this is done with the help of using just in time technique for example in most of the cases as the inventory comes in the warehouse it immegiatelybgets delivered to the customer to fulfill the order(Emblemsvåg, 2006). Moreover, to ensure the optimal inventory holding and order, employees in the warehouse are trained to maximize the speed so that orders can be fulfilled. By this way, company minimizes its cost by satisfying the maximum customer’s need.

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