Holmes Institute HC3152 E-Business Report: Amazon Australia & AI

This report examines the current operational position of Amazon Australia, emphasizing its e-business strategies and the critical role of Artificial Intelligence (AI) for its survival and growth. It explores Amazon's fulfillment options, its Prime program, and its investment in technologies like drones and robotics. The report highlights the importance of AI in enhancing customer experience, including the use of AI-powered tools like Alexa and recommendation engines. It also reviews how Amazon is leveraging AI across various aspects of its business, from logistics to video streaming, and analyzes its partnerships and investments in cloud computing and fintech. The report concludes with an overview of Amazon's market position, its global impact, and its future strategies in the e-commerce landscape, as well as a review of relevant articles related to Amazon's fintech initiatives, AWS, and investment strategies. The report is based on an assignment for the HC3152 E-Business Applications course at Holmes Institute.

Running head: E-BUSINESS
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Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction:...............................................................................................................................2
Current operational position of Amazon Australia:...................................................................2
AI needed for the business survival:..........................................................................................3
Use of AI in the Amazon:..........................................................................................................4
Article review:............................................................................................................................5
Conclusion:................................................................................................................................7
References:.................................................................................................................................8

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Introduction:
The prioritising operational is similar to the prioritising the consumer experience as
well as this is or so much critical for ensuring that the company maintains trust in the market.
The purpose of this paper is to discuss about the present operation of Amazon Australia. The
paper will also elaborate the importance of AI in the survival of the business. The mission of
Amazon is for selling the own products of them as well as for setting the own pricing of
them. At present it costs around 49.95 dollars for all of the retailers for selling on Amazon
Australia (Sanders et al.,2017). Amazon is the fourth most valuable organisation that is
publicly traded and it is behind Alphabet, Microsoft and Apple. The company has open
around 2400 sqmt. Fulfilment centre at Melbourne as well as they have purchased a location
in the South West Sydney that is the second location.
Current operational position of Amazon Australia:
In terms of fulfilment, there are basically two options that are available, one of them
is shipping the products to the consumer or shipping the product the to the warehouse of
Amazon by the fulfilment the trough the programme of Amazon as well as let them take care
of the customer service and shipping (Sonter et al., 2017). The director of operation of
Amazon says, “This is just the start, over time, we will bring thousands of new jobs to
Australia and millions of dollars of investment as well as opening up the opportunity for
thousands of Australian businesses to sell at home and abroad through Amazon
Marketplace.” The Amazon Australia is currently offering the prime program that is so much
popular, it is including free of cost shipping to all of the products. However, for the non
prime consumers free shipping is also available but a condition is existed there, if the order
will be more than 49 dollars. On the other side, in the market of US, 63 percent of the
consumers are prime members. The retail market in Australia is having an estimate of twenty

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billion dollars. In Australia, the business strategy of Amazon is consisting to focus on the
investment in the technologies as well as enhancement in the applications that are logistic in
type. The business strategy of Amazon Australia is also to improve the Web service of them
through the fulfilment in the capacity of them (Stewart et al., 2015). The Amazon Australia is
making investment in the drones and robotics technologies for the past decade as well as it
has acquired most of the patterns of them. Overall, the response that has come against the
Amazon Australia is that most of the retailers have made a complaint against Amazon that
the poor selection of the items, poor selection of pricing options as well as the retailers are
not impressed with the American megalith that is hitting the ground of Australia.
AI needed for the business survival:
Amazon Australia is researching on the drones for the initiatives of them as well as
for the future services for the drone based deliveries. The organisation recently has filed
many of the drone patterns on the package of the deliveries, parachute of the packages as well
as an airship warehouse that is floating. The Amazon is also having patterns design of drones
for better secure landing, manoeuvring as well as for the long flights. The AI is one of the
toughest areas where the despite is having most of the competitors that has been got by
Amazon is a big draw (Moura et al., 2016). The company is focusing continuously on the
machine learning and Artificial Intelligence for enhancing the experience of the customers.
The segment Amazon Web Service as well as the venture of this that is the Alexa Internet is
one of the biggest parts of the investment of them in the Artificial Intelligence. The
partnership of Amazon with Microsoft can also ensure that the collaboration for the research
in the Artificial Intelligence where the personal assistants of them such as Alexa and Cortana
would communicate with one another as well as this will provide best services to the users. It
has been announced by Amazon that the strategy of Alexa everywhere in the year 2017 as

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well as it has been becoming one of the biggest success that despites the existence of the
other personal assistance that are available in the market.
Use of AI in the Amazon:
The approach of Amazon to the Artificial Intelligence is known as flywheel. In the
terms of engineering, the flywheel is one of the deceptively simplest tools that has been
designed for storing the rotational energies efficiently. This works by storing the energies at
the time a machine is not working at a level that is constant. Instead of wasting energies to
turn it on and off, the constant energies can be kept by the flywheel as well as spreads this to
the other areas of the machine (Brienen et al., 2015). Alexa, that is the AI infused voice
assistance of Amazon was the first release that is having support with the Amazon Echo
Smart speaker which was released in the year 2014. After the launch of Alexa, this is giving
head to head challenge to the rivals of it that are Apple speakers and Google Home. Recently
the company has also acquired other organisations in the space of cloud computing as well as
they have invested in the cloud services that are business based. For increasing the number of
usages of the cloud based technologies, the Amazon Web Services is making investment for
opening data centres in France and Britain. The company is also making investment in the
movies and TV series either by production or through acquisition as this is the ability to strive
for competing with the other streaming rivals such as HBO, Netflix, Disney and Hulu. The
company is creating a service for Video streaming alone to create their own tv series as well
as film production of their own, which is known as Amazon studios. Amazon is also
including AI to the logistic app for strengthening the delivery and logistics network. The
organisation has announced to develop an application that is for helping the truck drivers, the
apps are AI enabled (de Almeida et al., 2016). Amazon also making use of AI in the drone
delivery services of them. They are experimenting with the new delivery services that are
intended for making more of the items that are available for free deliveries of two days as

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well as relieve over-crowding in the warehouses of them. The artificial intelligence is not
located in one single office at Amazon as well as the information and data has been spread to
all of the departments. The technology of machine learning is utilized by the team of
recommendation of the products as well as they are shared to the entire areas of the company.
The Artificial Intelligence and machine learning are having the ability to power up three of
the products of Amazon that are, the Amazon go store, Alexa as well as the Amazon
recommendation engine. The Amazon echo that features to the AI bot Alexa which has been
the popular most forays of the company in the section of the machine learning (Coelho et
al.,2016). The amazon go that is cashier less has also been taken advantage of the wealth of
data for tracking the trends of customer shopping. A huge role has been played by the AI in
the recommendation engine of Amazon, that can generate 35 percent revenue of the
company. By using the information and data from the preferences of individual customers as
well as purchases, items as well as preferences of the customers which are related to one
another as well as regularly brought together. A personalized list of all the items can be
created by Amazon, which has demand to the customers.
Article review:
As indicated by Rap et al., 2015, amazon is experimenting with the other fintech
initiatives as well as they intend for becoming one of the most prominent players in the
segment of fintech. The organisation is providing thousands of loans for the e-sellers, that the
suppliers will be able to expand the operations of them as well as they will be able to manage
the spikes that are seasonal. The financial reach has been expanded by the company as they
have launched Amazon cash that can allow all of the clients for adding into the Amazon.com.
through showing the barcodes at the mortar and brick checkout locations.

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According to Jokinen et al., 2015, the segment of AWS is earning from the global
sales for computing, storage, databases as well as the other services that offers for the
enterprises, start-ups, academic institutions as well as the government agencies. The Amazon
web services is one of the fastest growing segments of the company for the net income and
sales. In the year 2018 the sales were increased by 47 percent as compared to 2017.
According to Noya-Alarcón et al., 2019, the company is investing in the wider variety
of the industries. Between the period of the year 2011 to 2013. The investment activities of
Amazon have been slowed down as most of the investment of the company was on the
internet-based companies. After that during the period of 2014 to 2016, the investment
strategies of the company have been changed as well as they have been starting to channelize
the investment in the other industries such as Auto and transport, Media as well as mobile.
Few of the other huge investments has been made by Amazon. In the year 2016, Amazon has
made partnership with Twilio for strengthening the communication platform of it by the
voice and text messaging.
As indicated by Zhao, Velicogna and Kimball, 2017, ford and Amazon has made
partnership for offering the customers the ability for accessing the car of them from a
distance. It has been done through bringing the Amazon Echo into the cars that are made by
the Ford. By the help of Amazon Alexa, the cloud based voice service of Amazon, the cars
will be able to control functions like security systems, lighting, garage doors as well as some
of the other Alexa smart home devices. The dish networks are looking for using the platform
of e-commerce, home assistance, streaming devices as well as the drone delivery services that
are proposed.
According to Orellana et al., 2019, the data and information has been used by
Amazon from the consumers, they are also using the machine learning for identifying the

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items which each of the consumers are likely to buy. The samples that are of the new items,
are then sent to the consumers that are selected by the models of machine learning. All of the
samples are distributed bd delivered by Amazon. Obviously, Amazon is one of the worldwide
phenomena that is having millions of customers in all over the world. Recently Amazon has
achieved a milestone to reach hundred million of consumers in the prime subscriptions of
them. At present Amazon is the 3rd highest digital based platform that is remaining behind of
Facebook and Google. Amazon is having around 4 percent share in the digitalized ad market
that is dominated by Facebook and google.
Conclusion:
Thus, it can be concluded from the entire report that Amazon is an online retailer that
is US based. The company has been expanded massively from the last decades. The Amazon
Australia is currently offering the prime program that is so much popular, it is including free
of cost shipping to all of the products. The organisation has announced to develop an
application that is for helping the truck drivers, the apps are AI enabled. Amazon also making
use of AI in the drone delivery services of them. The Amazon is also having patterns design
of drones for better secure landing, manoeuvring as well as for the long flights. The AI is one
of the toughest areas where the despite is having most of the competitors that has been got by
Amazon is a big draw.

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References:
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Gonzalez, G., Monteagudo-Mendoza, A., Malhi, Y., Lewis, S.L. and Martinez, R.V., 2015.
Long-term decline of the Amazon carbon sink. Nature, 519(7543), p.344.
Brum, M., Gutiérrez López, J., Asbjornsen, H., Licata, J., Pypker, T., Sanchez, G. and
Oiveira, R.S., 2018. ENSO effects on the transpiration of eastern Amazon
trees. Philosophical Transactions of the Royal Society B: Biological Sciences, 373(1760),
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Coelho de Souza, F., Dexter, K.G., Phillips, O.L., Brienen, R.J., Chave, J., Galbraith, D.R.,
Lopez Gonzalez, G., Monteagudo Mendoza, A., Pennington, R.T., Poorter, L. and Alexiades,
M., 2016. Evolutionary heritage influences Amazon tree ecology. Proceedings of the Royal
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de Almeida, R.P., Galeazzi, C.P., Freitas, B.T., Janikian, L., Ianniruberto, M. and Marconato,
A., 2016. Large barchanoid dunes in the Amazon River and the rock record: Implications for
interpreting large river systems. Earth and Planetary Science Letters, 454, pp.92-102.
Jokinen, T., Berndt, T., Makkonen, R., Kerminen, V.M., Junninen, H., Paasonen, P.,
Stratmann, F., Herrmann, H., Guenther, A.B., Worsnop, D.R. and Kulmala, M., 2015.
Production of extremely low volatile organic compounds from biogenic emissions: Measured
yields and atmospheric implications. Proceedings of the National Academy of
Sciences, 112(23), pp.7123-7128.
Moura, R.L., Amado-Filho, G.M., Moraes, F.C., Brasileiro, P.S., Salomon, P.S., Mahiques,
M.M., Bastos, A.C., Almeida, M.G., Silva, J.M., Araujo, B.F. and Brito, F.P., 2016. An
extensive reef system at the Amazon River mouth. Science advances, 2(4), p.e1501252.

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Noya-Alarcón, O., Bevilacqua, M. and Rodríguez-Morales, A.J., 2019. Trachoma in 3
Amerindian Communities, Venezuelan Amazon, 2018. Emerging infectious diseases, 25(1),
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Orellana, J.D.Y., Cunha, G.M.D., Marrero, L., Horta, B.L. and Leite, I.D.C., 2019. Urban
violence and risk factors for femicide in the Brazilian Amazon. Cadernos de saude
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Rap, A., Spracklen, D.V., Mercado, L., Reddington, C.L., Haywood, J.M., Ellis, R.J.,
Phillips, O.L., Artaxo, P., Bonal, D., Restrepo Coupe, N. and Butt, N., 2015. Fires increase
Amazon forest productivity through increases in diffuse radiation. Geophysical Research
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Sanders, L.M., Taffs, K.H., Stokes, D.J., Sanders, C.J., Smoak, J.M., Enrich‐Prast, A.,
Macklin, P.A., Santos, I.R. and Marotta, H., 2017. Carbon accumulation in Amazonian
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Zhao, M., Velicogna, I. and Kimball, J.S., 2017. A global gridded dataset of grace drought
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