Amazon's Move to Physical Stores: An Organisational Behaviour View

This report provides an overview of Amazon's background, highlighting its evolution from an online bookseller to a global e-commerce giant. It delves into the company's strategic decision to expand into physical stores and examines the reasons behind this move, including the desire to offer customers a 'touch and feel' experience, address the merging of online and offline retail markets, reduce product returns, and leverage human interaction to enhance customer satisfaction. The report concludes that effective organisational behaviour and employee relations are crucial for Amazon's success, both online and offline, and that the company's strategies have positioned it as a strong competitor in the retail market. The report also highlights the importance of employee behaviour and relations in achieving business success.

Organisational
Behaviour &
Performance

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background of Amazon company...............................................................................................3
Why Amazon has decided to move onto physical store? ...........................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES:...............................................................................................................................6
Books and Journals:....................................................................................................................6

INTRODUCTION
Organisation behaviour may be define as the study of individual and group of people
behaviour along with their performance within the company. This study give knowledge about
the act of group of people or an individual where they work(Čiarnienė, Vienažindienė and
Adamonienė, 2021). The researcher of the organisational behaviour not only study the behaviour
of individual or team member but also set an interface between the employee's and organisation.
The one of the main aim of the researcher of the organisation behaviours is to re- develop the
organisational theories and build up a better organisation life within the workplaces. The
following report is going to give information about the background of the Amazon and why they
decided to move onto physical stores.
MAIN BODY
Background of Amazon company
Amazon is a online retail business company which offers their products and services all
across the globe through its online platform and mobile application. The headquarter of the
company was located in Washington, United states and founded by Jeff Bezos in 1994. In the
current time Amazon has become the first place for the people to shop from the company as they
have more then 564 million products. The total revenue in the year of 2020 was around USD
38606.4 crores and provide employment to more then 1468000 in their business. Amazon start
their business by selling books and food products through online platform and they later on
expand the business by offering electronics items, jewellery, apparels, toys, furniture and many
more items. As global technological firm company majorly focus on online or digital streaming
of films and most importantly web series. In the year 2018, Amazon prime has been subscribed
by more then 100 million people all over the globe. In 2017 company purchase the Whole Food
market for USD 13.4 billion which not only improves their footprints in the retail market but also
increase their customer base(Fenwick, 2021) .
Amazon stands in the market at highest position not only in the terms of sales and market
capitalization but also in term of cloud computing, e-commerce, AI assistance provider, online
streaming and many more services. Along with this the valuation of the company has been
considered as world highest international brand in the market. From different types of business

Amazon has make partnership like DC Comics, Nike, Booths, US portal services, Apple Inc. and
many more. On the other hand there is a list of subsidiaries companies who comprises under its
brand name like A9.com, Annapurna Labs, Brilliance Audio, ComiXology, createSpace,
Goodreads, Whole Foods Market and may more. Amazon has different types of distribution
facilities like sortation centre and delivery stations or fulfilment centre etc. For the smooth
distribution of goods and services all across the globe Amazon has open more then 75 fulfilment
with 25 sortation centre all across the globe which are effectively manage by around more then
125000 employees. The company also develops the warehouse which are partially manage by
robots and workers(Fernando, Akter and Bandara, 2021). The biggest rivals of the company are
Flipkart, Myntra, Alibaba, Netflix, Walmart, Otto. They also introduce some new range of
services like Amazon pay, Amazon go, Amazon Prime.
Why Amazon has decided to move onto physical store?
After dominating the online market in the past few years the management of the Amazon
is decided to open their physical store all across the globe. As in 2015 they decided to open their
store in the market to experience the offline stores. This not only increase their footprints in the
competitive market but also increase their profit as well as the customer base all across the
globe. Following are the reasons why Amazon wants to open their offline or physical store has
been discussed below:-
 One of the main reason for deciding to open the physical store by the management of the
Amazon is touch and feel. The difficulty which are faced by their customer is they are not
able to feel and touch the product when they purchase the product from online. To
overcome from this problem they opened Amazon Go stores, Whole Food, and retails
stores all over the globe (Planner, 2020) .
 From the company point of view the future of the retail market is merging. Sometimes
consumer plan to buy the products offline and this problem is being analysis by the
association of the company. For those consumer who prefer to buy the good physically
they plan to open the offline stores.
 It have been seen that consumer return their good because of its size, colour and material.
To over come from this problem and to reduces the cost of return Amazon starts planning
to open the offline stores. Products which are purchased by the consumer in the physical
store comparatively less returned by them when they brought online.

 Human is being considered as the most important element which satisfy and provide
good experience to the consumer(Sedova, 2018). It have been seen that, after a quality of
service given by the store staff to the consumer increases the spends of shoppers.
CONCLUSION
From the above report it has bee concluded that good behaviour of an employee or group
of people is very important from the success point of view of business. Good employee's relation
and behaviour not only help the company in achieving position in the market but also help them
smooth functioning of the different business operations. The above report concluded that
effective functions and strategies of the Amazon position themselves in the market as a strong
competition not only in the online segment but also in offline segment. This report also
concluded the background history of Amazon and different reasons for opening their physical
stores in the market.

REFERENCES:
Books and Journals:
Čiarnienė, R., Vienažindienė, M. and Adamonienė, R., 2021. Linking the employee voice to a
more sustainable organisation: the case of Lithuania.
Engineering Management in
Production and Services. 13(2). pp.18-28.
Fenwick, J., 2021. Conclusions: Challenging the Public Organisation. In
Organisational
Behaviour in the Public Sector: A Critical Introduction. Emerald Publishing Limited.
Fernando, M., Akter, S. and Bandara, R.J., 2021. Employee–organisation connectedness and
ethical behaviour: the mediating role of moral courage.
International Journal of
Productivity and Performance Management.
Planner, R.H.B., 2020. Behaviour Hierarchies and Self-organisation in the Multi-Agent
Programming Contest.
The Multi-Agent Programming Contest 2018: Agents Teaming
Up in an Urban Environment,
11957, p.120.
Sedova, M., 2018. An effective approach to addressing human security vulnerability in an
organisation.
Cyber Security: A Peer-Reviewed Journal. 2(1). pp.51-65.