Report on Amazon's International Operations: Issues and Solutions

This report provides an analysis of Amazon's international operations, examining the challenges and opportunities the company faces in the e-commerce landscape. The report highlights the shift in customer behavior, with a growing preference for physical stores over online retail, and discusses ho...Read More

Running head: INTERNATIONAL OPERATIONS OF AMAZON
INTERNATIONAL OPERATIONS OF AMAZON
Name of the Student
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1INTERNATIONAL OPERATIONS OF AMAZON
Table of Contents
About the company........................................................................................................2
Introduction to the issue.................................................................................................2
Discussion in details based on the issue.........................................................................3
Disadvantages of different approaches..........................................................................4
Conclusion......................................................................................................................5
Recommendations..........................................................................................................5
References......................................................................................................................6

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About the company
Amazon.com is a multinational technology based organization that has its origins in
Seattle, Washington. The organization mainly focusses its operations in different activities
like, cloud computing, e-commerce and the artificial intelligence based aspects. Amazon is
also considered to be the largest e-commerce based marketplace (Amazon.com 2019).
The organization aims to provide a cloud computing based platform that is mainly
measured with respect the market capitalization and revenues. Amazon was established by
Jeff Bezos in the year 1994. The organization had started its operations as an online
bookstore. Amazon.com has expanded its operations in the sales of different products like,
video downloads, food, furniture, toys, jewellery, Fire tablets, Fire TV, Echo devices, cloud
infrastructure based services and many more. Amazon provides its products and services to
the customers in different countries (Aulkemeier et al., 2016). The analysis will be mainly
based on a recent issue that is being faced by the organization based on its operations in the
retail industry.
Introduction to the issue
Amazon.com has recently started facing major issues based on the habits and needs of
people related to the physical contact with the products that they wish to purchase. The need
of customers based on proper inspection of the products before purchasing them is a major
issue for the organization (Bernon, Cullen & Gorst, 2016).
The extensive of use of technology in the process of purchasing the desired products
have not been able to affect their need of seeing the feeling them directly. The real
psychological and physical needs of people are able to play a major role in the process of
their purchase. The customers wish to see the products and purchase them immediately. They
do not like to wait for their desired products. This is the major reason behind the increase of

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customers in the physical stores in comparison to the online retail based stores (Birkin,
Clarke & Clarke, 2017). The demands of customers are mainly related to the ways by which
they are able to purchase the products and services from the stores itself. Although the growth
of e-commerce is huge, physical stores are considered to be much more significant for the
customers (Häikiö & Koivumäki, 2016). The physical stores of different organizations like
Walmart and Target are able to offer major levels of opportunities to the customers so that
they are able to choose the appropriate products and services and obtain them immediately.
Amazon has thereby started facing major levels of competition in spite of the convenience
that it has been providing to the customers based on their shopping experiences with the help
of its website (Birkin, Clarke & Clarke, 2017).
Discussion in details based on the issue
The issue that has been mentioned is mainly related to the lack of effective number of
customers who visit the website in order to purchase the products. The needs and demands of
the customers have remained the same in spite of the use of technologies in different
operations (Ishfaq et al., 2016).
The e-commerce based activities have been able to affect the ways by which different
organizations have developed their operations. Amazon.com has been able to gain huge
levels of success in the online retail based industry. However, the organization has recently
started facing issues related to the needs and demands of customers. The physical stores have
provided opportunities to the customers so that they are able to see and experience the
products that they wish to purchase. The purchase of products has become easier for the ways
by which the customers can obtain the products faster (Jain et al., 2017).
Advantages of different approaches

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A major approach that has been implemented by Amazon.com in order to develop the
physical stores is termed as Amazon Go. The stores have been mainly developed in order to
face the competition that is provided by the organizations like Walmart and Target (Laudon
& Traver, 2016). The major advantage that is provided by Amazon Go is related to the time
savings based qualities and high levels of convenience that is provided to the customers. The
retail format has been able to play a major role in the ways by which the tech savvy
customers can be targeted. This is considered to be an advanced solution that is provided to
the customers in order to fulfil their demands within short periods of time. The organization
will be able to reach the customers and at the same time provide them opportunities to
interact with the store employees. Amazon also provides self-payment based options to the
customers that enables them to make payments with the help of the app (Melacini et al.,
2018). The self-payment related options are able to increase the speed of services offered by
Amazon to the customers. The customers will be able to see and feel the products and also
purchase them immediately by scanning them with the help of the app. The proper scanning
of products and purchasing them immediately are major levels of opportunities that are
offered by the stores of Amazon Go (Laudon & Traver, 2016).
Disadvantages of different approaches
Amazon Go is mainly a grocery store that is able to fulfil the requirements of the
customers. The stores are similar to the other grocery based stores of different organizations.
However, they do not have a checkout facility. The customers need to Amazon Go in order to
pay for the products and they can walk out of the stores (Pantano, 2015). The facilities that
are provided in the Amazon Go based stores are developed with the help of data of the
customers that is available to them. The data gathering based options that are used by the
organization have reduced the levels of privacy of the customers (Vitale & Pillan, 2016). The
steps that are being taken by the customers are tracked by the organization and the services

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are provided accordingly. The impulse buying based structure can be effective for the
profitability and revenues of Amazon. However, the budget levels of customers can be
affected by the convenience that is provided to them (Papagiannidis et al., 2017).
Conclusion
Amazon.com has developed a leadership position in the online retail based industry.
However, the lack of proper customers has been able to affect the sales of the organization to
some extent. The organization has not been able to fulfil the needs of customers based on
seeing the products and purchasing them according to their own wish. The organization has
taken a major approach of developing physical stores that are able to showcase the products
for the proper viewing of the customers. This approach however has some advantages and
some disadvantages as well.
Recommendations
 Amazon.com can be recommended to increase the number of stores that have been
developed by the organization in order to increase the reach towards the customers.
 Amazon.com needs to implement new and improved technologies in order to reach
the customers and fulfil their personal needs and demands in an effective manner.
 The physical stores need to showcase more number of products in order to address
the needs of various types of customers.

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References
Amazon.com 2019. Amazon.com: Online Shopping for Electronics, Apparel, Computers,
Books, DVDs & more. [online] Amazon.com. Available at: https://www.amazon.com/
[Accessed 19 Apr. 2019].
Aulkemeier, F., Schramm, M., Iacob, M. E., & Van Hillegersberg, J. (2016). A service-
oriented e-commerce reference architecture. Journal of theoretical and applied
electronic commerce research, 11(1), 26-45.
Bernon, M., Cullen, J., & Gorst, J. (2016). Online retail returns management: Integration
within an omni-channel distribution context. International Journal of Physical
Distribution & Logistics Management, 46(6/7), 584-605.
Birkin, M., Clarke, G., & Clarke, M. (2017). Retail location planning in an era of multi-
channel growth. Routledge.
Häikiö, J., & Koivumäki, T. (2016). Exploring digital service innovation process through
value creation. Journal of Innovation Management, 4(2), 96-124.
Ishfaq, R., Defee, C. C., Gibson, B. J., & Raja, U. (2016). Realignment of the physical
distribution process in omni-channel fulfillment. International Journal of
Physical Distribution & Logistics Management, 46(6/7), 543-561.
Jain, N. K., Gajjar, H., Shah, B. J., & Sadh, A. (2017). E-fulfillment dimensions and its
influence on customers in e-tailing: a critical review. Asia Pacific Journal of
Marketing and Logistics, 29(2), 347-369.
Laudon, K. C., & Traver, C. G. (2016). E-commerce: business, technology, society.

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Melacini, M., Perotti, S., Rasini, M., & Tappia, E. (2018). E-fulfilment and distribution in
omni-channel retailing: a systematic literature review. International Journal of
Physical Distribution & Logistics Management, 48(4), 391-414.
Pantano, E. (Ed.). (2015). Successful technological integration for competitive advantage in
retail settings. IGI Global.
Papagiannidis, S., Pantano, E., See-To, E. W., Dennis, C., & Bourlakis, M. (2017). To
immerse or not? Experimenting with two virtual retail
environments. Information Technology & People, 30(1), 163-188.
Vitale, A. N. N. A., & Pillan, M. (2016). Products as communication platforms. Investigating
and designing the evolution of retail services in the digital era. In 6th International
Forum of Design as a Process, Systems & Design (pp. 327-336). Editorial Universitat
Politècnica de València.