Operational Management Strategy of Amazon

Table of Content
Operational Management Strategy of Amazon:..........................................................................................1
Integrated Business Operations:.............................................................................................................2
Customer Centric Focus:..........................................................................................................................2
Distribution Efficiency:.............................................................................................................................2
Human Resources:...................................................................................................................................2
Location Planning and Analysis:...................................................................................................................3
Total Quality Management:.........................................................................................................................3
Continuous Improvement:.......................................................................................................................3
Inventory Management:..............................................................................................................................4
Reference....................................................................................................................................................5
Operational Management Strategy of Amazon:
Excellence attained by the Amazon’s operations management (OM), which specifically
have a positive impact providing an edge over the rivals is a very important factor Amazon’s e-
commerce management strategy. To maximize efficiency, the organization adopted many
strategic tactics of OM. Amazon, is now globally biggest e-commerce firm, demonstrating the
significance of technology supported efficiency providing best results in the market. With the
passage of time each day the Amazon is showing development and capturing new markets, it is
becoming complex to handle and maintain the strategic decisions of operational management and
they are becoming more and more complex. One of the reasons that aids Amazon's capability to
provide enough capital for procedures during worldwide progress and an expansion of the
product mix is continuous improvement. Amazon is a leader in internet shopping and the e-
commerce industry through efficient operations management.

Amazon maintains that all strategic decision areas of its e-commerce market are met
through its operations management (OM) strategies. Amazon aims to adapt its operational
management strategy in response to developments in these strategic decision areas as it expands
operations beyond its online shopping market. This Amazon Operations Management
focuses on defining E-commerce as a cutting-edge industry framework that has allowed
businesses to increase their global accessibility in a different dimension. It is fundamentally the
smartest and most cost-effective way for virtuous stores to reach out to a larger client base with
successful and timely market response. The introduction of E-commerce technologies resulted in
a mixed commercial outcome. It has paved the way for many organizations’ potential business
expansion, although for some small-scale organizations, it has been a competitive stroke to play.
Integrated Business Operations:
Amazon’s all operations are integrated. One thing triggers the next one. When one
customer orders one thing, order is straight forwardly placed to the database and then sent next to
the nearest warehouse for immediate supply. Immediate supply also increase the confidence
level of the customers resulting increasing the customer loyalty.
Customer Centric Focus:
Many aspects, including customer loyalty campaigns such as Amazon lead to good
customer experience. Amazon has since made considerable investments in technologies to
minimize product mistakes and boost 'self-service' for its clients. Amazon has more than 10,000
engineers at its payroll trying to keep up with technological innovations to have a friendly user
interface. In order to manage the required logistics for prompt fulfilment of order (Lang et. al
2012), Amazon has also invested into the proprietary storage and ordering tools (Liyakasa,
2012).Amazon always makes policies that move around its clients. That also proved to be a
game changer factor for the Amazon’s business and it make Amazon a business leader on the
market.
Distribution Efficiency:
In terms of delivery, Amazon's original aim was to remove the middleman in the supply
chain. This was achieved by direct negotiations with publishers, the construction of vast
warehouses, and the utilization of newly recruited Wal-Mart executives' skills. Amazon leased
the first big 93,000 square foot facility in South Seattle in November 1996. Amazon opened a
second facility in New Castle, Delaware, precisely one year later. Opening its own warehouses

not only reduced the time of delivery but it also helped to lead more customer satisfaction
(Distinguin, 2011).
Human Resources:
According to the annual report of Amazon 2011, Amazon have shown a tremendous
attempt to employee expert and versatile workforces. Amazon has also adapted its corporate
tactic by linking pay to value creation for its manpower. Because employees are shareholders of
the firm, so this plan inspires them to work hard and they feel like a part of the firm. Though
Amazon assumes its workers to give their best during their duty, it also understands the
significance of keeping a good relationship with them. Amazon has implemented measures
aimed at improving employee loyalty. In July of 2012, the Amazon Career Choice Program was
launched. Via this tuition assistance scheme, Amazon will cover “95 percent of the cost of
courses such as aircraft mechanics, computer-aided design, and medical laboratory
technologies.” This platform was created by Amazon to help support schooling in high-demand
and high-paying markets, even though the talents aren't directly comparable to a job at Amazon.
Amazon tried to develop its own human resource by funding different institutes and to intelligent
individuals. That’s not only provided Amazon with a quality staff but also they proved more
faithful than the other already present staff. It helped Amazon to achieve the strategic excellence
in the market and become the base of a stronger human capital for Amazon also.