Innovation Strategies of Amazon

This report explores the innovation strategies of Amazon, including the innovation management process, comparison of strategies, and organizational, commercial, and technological constraints. It also discusses the use of digital technologies and the intellectual property rights strategy of Amazon.

Structure of rep
Table of Contents
Introduction......................................................................................................................................3

Main Body.......................................................................................................................................3
(a) The innovation management process in Amazon.............................................................3
(b) Innovation strategies of the company and their comparison.............................................4
(c) The organisational, commercial and technological constraints........................................4
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
Introduction
The world is full of innovations and technologies, although the organistions in all over
the world are trying to give more digitalisation and technologies to the people. While taking such
steps they have to face so many challenges regarding such innovations. Electronic commerce is
the platform where buying and selling of products and the money transfer or data and services
regarding these all process are given. In these types of business the money transitions are done
by business to another business or directly to the business to consumer, either customer to
customer or customer to business (Adaji, 2017). The working process of this business done through

the internet, the business holders make some online shopping apps and the customers just access
them and place the orders they needed and get the deliveries at their homes. In order to explain
this report an example is taken in which the one of the well known organisation is taken.
Amazon is an US based company founded in 1994 by Jeff Bezos in Washington. The present
headquarters of Amazon are in Washington. Amazon is trying to build up its market in the food
delivery industry. For the innovation it may be the better deal for the Amazon for the betterment
of the business and growing the organization for the future.
Main Body
(a) The innovation management process in Amazon.
Amazon is well known organisation holding a good position in online retail market. This
organisation do not sell only the basic products like clothes, food, cosmetics etc but also
produces and sells the electronic devices, software’s and many more digital based products
(Shokeen, 2019). As it is explained using some facts the Amazon gives best delivery services for
goods and it’s easy to use the online app provided by this company etc these all things has put
this company top in the online market and got the title of most oriented company in worldwide.
As it is talked about the innovations and the technology, last year Amazon built a new method of
the payment as the payment method is known as biometric method of payment. This new method
of payment will allow the customers to pay without getting in contact. In this process the wrist or
palm of the consumers will be scanned by the system and all the details will be linked with the
credit and debit cards of the customers, once the registration will be done it will be easier for the
customers to pay by just scanning their hand. On the other side it will help them to make safer
method of payment as they do not have to carry any type of cash or cards. The competitors of
Amazon are Google, Apple and Microsoft. It is truth that the strategy of customer oriented is
best, as the organisation is facing the problems from their competitors and just getting pushed
back due lack of management practices. Getting affected by such problems it’s become
necessary to make a good Human Resource strategy which will be most relevant and suitable
innovation (Lee, 2018). As the organisation is having its total focus on providing services to the
customers in result forgot and the employees got neglected. By which the employees and
workers of the company got to know that organisation will not going to support or protect them
and will not do anything for them, for getting out from such problems Amazon took some steps
by doing some innovation for the benefits of all the workers and employees including the
consumers. In simple words innovation is a multifaceted process, which in reflects that its design
involves numerous components that have to be pointed. As its need the company should not take
only abilities and skills but also see the creativity and potential of person.
Amazon always tries to evolve and improve the reason behind this is rapid growth,
company never stops keeps on working on their won evolution. Believe of this organisation is to
not give excuses on the defected product or waist the time of consumer its having the fast return
services. The company put itself from the competitors as it provides the satisfaction and by

completing needs of customers by easy shopping. By applying this technique company achieved
the success with their different products like the Kindle and the Echo. Amazon is the company
which is not having any kind of scare to take part in new industrial market. Amazon is not only
fear less in online market but it’s quite bold to competing the other industries. Amazon not only
give the customers free and fast delivery services on purchase of thousands of products can take
these same services from the different companies also. The company is also streaming its videos
by which the people get to know more about this company which will be good for future of the
company. Amazon is having one click purchases option in its online app while in the different
companies the customer has to fill lots of personal details regarding the purchase of product this
is also considered as good innovation by this customers feel comfortable while purchasing
things. Even this is also known as good marketing strategy. While the other companies are just
working on voice assistance Amazon just putted this facility in its purchasing app the app named
ALEXA. It is amazing doing things on Amazon while purchasing, ALEXA will hear all the
commands which will be helpful to the customers. The company has innovated its cloud
computing platform by which the web services of the company can run in more easily and faster
way. Not only for the company this platform is useful for the other companies also they are also
using so the innovation is useful for both the customers and different companies.
(b) Innovation strategies of the company and their comparison
 One click purchases – In this type of innovation Amazon make the purchase of
products easier, by this customers can purchase the products by just selecting them
without giving any types of details etc. This innovative strategy helps in adding more
customers to the company.
 Prime- Amazon not only given the fast and free shipping service to the customers,
they can take these facilities from the other online retailing companies also.
One click purchase and the prime seems similar the first innovation provides easy purchase
option and the second one gives the service of that purchase in fast and free manner (Heng, 2018).
Might be buying in single click is good for business but sometimes the free shipping service
seems good for marketing but not for the business. As the Amazon is trying to start their business
in the food delivery industries they have to go through some steps of marketing strategies which
will be helpful for the Amazon to build up the base in this sector, although its new line for the
Amazon but due to the pandemic of covid 19 it is must for the organisation to make a different
and good platform for the betterment of the organisation. as Amazon is the online based
company and its most of the business is dependent on the online apps. So it should make its own
app for the food sector. As its new the competitors will try their level best to harm the business
as it may get affected from the Deliveroo as it’s the best food delivery company based in the UK.
So for the best start-up Amazon should focus on the permanent customer’s and by giving them
best deals it should go for the business and if the organisation do such type of innovation for the
betterment of the organisation it will defiantly get positive result from the customers.

(c) The organisational, commercial and technological constraints
I. The digital technologies used by the Amazon
Amazon has stabilised so many technological fronts, from cloud computing to e-readers,
video streaming, online grocery shopping and gaming.
Amazon Dash Button- On the announcement of this new technology people just laughed on it
and it seems like a joke to them, the life of dash button was single function controller which
looks like a small gum pack which can be put near to house of the customers (Benmamoun, 2019).
These buttons become the necessity in houses by brand name. Sometimes the persons who are
using the dash button just press it to reorder the razor blades and detergent. While these buttons
were not seems applicable then the company just installed in the appliances by their makers. The
company sentenced that they sold out so many dash buttons, by taking cost of $5 each. As the
times changes these functions were not applicable as the voice assistant ALEXA took the place
of these buttons. In the last design and name live on Amazon dash buttons, and a page was used
to reorder in one click.
 Amazon fresh- Amazon is the only company whose online grocery shopping give
business success. The Amazon Fresh subsidiary made so many geographic markets
where the customers can place the orders of grocery. In this inventory of packaging done
by brands name, ready to eat meals, fresh produce and ready to heat. These products
were delivered by trucks in short time. In present time this type of service is used by
millions of people and the purchase of food is expended.
 Amazon prime air- the assumption of the company for the future is the customers are
able to receive the prime orders in just thirty minutes and the no rules will be broken
regarding the speed limits.
 Amazon fire TV- this product of Amazon is similar to the different companies such as
Apples TV etc. This digital innovation of Amazon is getting best response from the
market and connected millions of customers. This Fire TV gives the facility of watching
live shows, movies and shows. On the other side it’s also a well-known and consumed
gaming device.
II. Intellectual property rights strategy.
The launch of new program is done by Amazon Intellectual Property Accelerator, this new
program will help the brands in obtaining intellectual property rights and brands protection in
less time (Vanaja, 2018). The creation of this program links with the business which are not that
bigger in mind and this will help the people by making it easier and worth. Sometimes the
guidance of legal experts may be critical for the business to protect the business they are doing
and can be helpful in avoiding the mistakes which can be costly in the filling process of the tread
mark. These types of problems can be solved by the use of this program by connecting the
business with the trusted intellectual property laws that provide the high rang trademark
registration services. Using such kind of program put out the guesswork out of the process of

filing trademark. Such kind of laws knows about the ins and outs of the intellectual property and
the money and time can be saved, this type of application can save the time to secure the
registration of trademark (Kolotylo-Kulkarni, 2021). In addition the other companies can also give
the additional services that fall within the intellectual property scope.
III. Standard operation procedure
Standard operation procedure explains the actions or the strategies used by the
organisation. This procedure includes the daily routine operations for the help of workers. The
aim of this operation is to get quality output, achieve efficiency, and uniformity of performance.
Amazon also applies this operation as its digitally growing sector in online marketing. One of the
biggest entrepreneurs has to face the down fall sometimes to set up standard operation
procedures. The use of standard operation procedures helps the owner to be hands off. A
successful business man makes abstract concept into demand product. Developing up and
Amazon fulfilled by Amazon business is a great way to handle the logistics of selling the product
of the company. On the other hand if the seller gives one or two hours daily for managing the
company while the expansion are totally different from the Amazon market place. The intention
of the standard operation procedure is to find if any kind of the changes are made in procedure, it
will modification will be done the things which were present they will be placed properly in the
same documents where they were before. If anyhow the implementation is done then the
standard operation procedure make the things to be in notice to every employ of the authorities
of the organisation.
Conclusion
The chosen company for this report is Amazon. This report includes the explanation
about e-commerce, the innovation done by the above mentioned company. What type of the
challenges company has to face while doing such innovations. The innovation of Amazon fire
TV and the Dash button are given in this report (Qin, 2020). The strategy used by the company was
beneficial although the digital technologies use is also provided in this report. The given
strategies fit the organisation which is given above. This report also includes the new programme
which is helpful in obtaining the intellectual property rights. The creation of this programme will
be help full to the small business to get a proper report of trademarks. Will help in time and
money saving.

References
Books and generals
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Lee, S.G., Trimi, S. and Yang, C.G., 2018. Perceived usefulness factors of online reviews: a study of
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(Li, 2020)