Research Project: Impact of Social Media on Amazon Business Practices

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AI Summary
This research project investigates the multifaceted impact of social media on the business practices of Amazon, a leading multinational e-commerce company. The study employs a mixed-methods approach, combining qualitative and quantitative data collection techniques to provide a comprehensive analysis. The research explores both the positive aspects, such as enhanced customer engagement and brand building, and the negative aspects, including reputational risks and time consumption, associated with social media utilization. The project includes a detailed literature review, research methodology, results and findings, and a thorough evaluation of the outcomes. The conclusion highlights the value social media brings to Amazon in terms of market reach and sales maximization, while recommendations are provided for enhancing social media operations. The project is aimed to determine positive and negative impact of social media on the business practices of Retail Company.
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Research Project
(Impact of social media on the
business practices of Retail
Company.)
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Executive Summary
The present study aim to determine positive and negative impact of social media on the
business practices of Retail Company. Therefore, in the advanced and serious business time, the
vital rationale of every little just as enormous business venture is to achieving higher
development and achievement. Thus, social is an imperative aspect which is effective in
establishin interconnection among the people and provides a wider network to be connected with
people at global level. Social media is also supportive for the business to develop new avenues of
traffic which leads individual to their products and solidify their identity to the buyers, customers
and clients. In this present analysis study is being executed over Amazon, thus it is a large
multinational e-commerce business which has its operations all around the world. The study is
imperative in enhancing individual recognition in relation to the aspect of positive and negative
impact of social media over the practices of the business. In this present analysis mixed method
has been applied by the researcher as in this qualitative and quantitative both the information is
gathered to generate valuable outcome. Quantitative analysis supports the statistical evaluation
and the quantitative method provides suitable detailed analysis in theoretical aspects. In addition
to this, primary and secondary both the tools are applied by the researcher as to gather valuable
information. Primary research is being conducted with the help of implementing descriptive
statistical analysis in the form of SPSS. Secondary sources like books, journals and articles are
implemented to gather valuable information. Therefore, secondary data are imperative in
conducting literature. Furthermore, conclusion is drawn in the manner to determining the
positive aspects like social media is imperative in enhancing the operations of the business and
also increases the base of the buyers. The study also analyse that, social media also has negative
impact in the manner to destroy of the image of the business, time consuming in nature, risk of
unwanted behaviour and so on. The project conclusion imitates that, social has created value for
the business in enhancing its approach it the wider market and maximise the sales and revenue of
the business. Recommendation in the manner to enhancing the social media operations would be
significant for Amazon to enhance the operations and attain significant edge within market.
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Table of Contents
Executive Summary.........................................................................................................................2
Title of the Research........................................................................................................................1
Introduction......................................................................................................................................1
Overview of the Research......................................................................................................1
Background of the Research...................................................................................................1
Rationale of the Research.......................................................................................................2
Research aim..........................................................................................................................3
Research objectives................................................................................................................3
Research Hypothesis:.............................................................................................................3
Research questions.................................................................................................................4
Literature Review.............................................................................................................................4
Research Methodology....................................................................................................................9
Results and Findings......................................................................................................................11
Evaluation of Results and Findings...............................................................................................20
Conclusion.....................................................................................................................................33
Recommendation...........................................................................................................................34
References......................................................................................................................................36
Appendix........................................................................................................................................39
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Title of the Research
Impact of social media on the business practices of Retail Company.
Introduction
Overview of the Research
The present study initiates to evaluate the impact of social media on the business practices
of retail business; therefore, social media mainly allows the businesses to create effective and
meaningful relationship and get to know future consumers effectively. Social media is
characterized as a computer based innovation which offices the sharing of thoughts, information
and musings by means of creating virtual organizations and networks (Beetham and Sharpe,
2013). Therefore, social media involves assorted tools like internet, Facebook, Instagram,
Snapchat, Pinterest, YouTube, Twitter and so on. Which are effectively be applied by the
businesses to develop opportunities within commercial centre and also develop effective
communication to enhance the marketing of the business effectively. With the help of social
media a business can build an effective fan base or receive suitable feedbacks from their targeted
buyers. The selected organisation for this specific project is Amazon, thus it is a large and
American multinational technology company, which is suitable in rendering appropriate
recognition about the positive and negative impact of social media on the business practices as it
is operating at a wider level and recognised as the largest e-commerce company which has its
operations within the retail sector. Amazon is a large multinational e-commerce business which
is widely focuses over generating more revenue and profitability and for this, the company is
relay over executing operations via implementing effective social media sites which are
imperative in nature to enhance business operations (Brynjolfsson and McAfee, 2012). For the
effective execution of the project, the investigator opt different methods like qualitative and
quantitative research method, primary and secondary data collection tools, deductive
investigation approach, interpretative paradigm and many more, which are suitable to aid the
project in right manner.
Background of the Research
Social media mainly defined as interaction computer intermediated tool and technology
that basically encourages the extension and sharing of the thoughts, profession, information,
interest and numerous different kinds of articulation through the virtual networks and
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organizations. Nonetheless, in the advanced business time rivalry inside market is so high and
the digital advancement has transformed the way of conducting business and its operations. Thus
organisations are widely concern over enhancing operations with the support of implementing
suitable social media sources which are effective for the business to enhance the approach in all
around the globe and generate higher traffic of customers (Brynjolfsson and McAfee, 2014).
Amazon.com, Inc. is a widely recognised multinational technology company which has its high
brand reputation within all around the globe. The company is based in Seattle, Washington. The
company is founded in the time of 1994 by the likely endeavors of Jeff Bezos. Amazon is
fundamentally engaged over online business, advanced streaming, computerized reasoning and
the distributed computing. Amazon is recognised as the one of the major considered company of
U.S information industry along with Apple, Facebook, Google. The company is operated with
around 1000000 employees who are putting their potential strength in the success operations of
the business, as Amazon is one of the most powerful economic and cultural forces in the global
as well as the world's most valuable brand. The company has started its online business with the
help of selling books and now it expended to sell software’s, food, video game, electronics,
jewellery, furniture, and grocery and so on. the estimated revenue of the firm is around 280.522
billion dollar. The company has its major concern over improvising the use of social media and
attain higher growth and success (Buhalis and Foerste, 2015). Amazon has over 26.5 million
followers over Facebook, therefore, the central account of has a product listing of retail and
consumer merchandise and is applied to market their own products and effective deals, rivalry
and the offers to their buyers community. The company is also having an appropriate and
specific account over Facebook which is related to their products likewise Prime Video, it is
much like the main or central account, thus these are mainly applied to drawn attention of the
buyers in relation to a specific product and the offers for the purpose of increasing the intrigue,
drive engagement via the reach and ultimately attaining higher sales (How do Amazon use Social
Media?, 2020). Amazon Inc. remains very active over different other Social Media sites and
networks and investing time into network-specific content. For instance, on Snapchat they render
Snap Deals – exclusive, one-off style offers that lend themselves perfectly to the network. In
addition to this, over Instagram they are basically concern over visually appealing content and
products that doesn’t seem out of place, alongside a wider range of pictures of animals playing
around on Amazon branded boxes. Thus, they are fully aware that animals are appealing and
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shareable, and so use Instagram to increase their brand reach. Each and every successful Social
Network is continuously growing to meet the increasing and changing needs of consumers, and
Amazon are more than willing to take an effective participation in that evolution. Amazon listens
and responds to their customers, offering awesome content that provides value to those who
interact with it.
Rationale of the Research
The research into consideration is based on evaluating the positive and negative impact of
social media over the business practices of Retail Company; therefore, the scope of study is wide
as it provides a wider knowledge base about the aspect of social media and its effectiveness for
the growth and development of the business. Social media is a wider concept and knowledge
about this subject is imperative for the businesses to analyse where social media had positive or
negative impact over the operations of the business and implement suitable strategies to attain
higher advancement (Cohen and et. al., 2014). The primary intention of conducting analysis over
social media is that, it is a most applied tool of today’s modern business era, as organisations are
concern over enhancing the operations with the suitable utilisation of social media and its tools.
The present study helps in providing in-death analysis over the aspect of social media and how it
creates positive and negative impact over the operations of the business. Study over such
analysis are important for the businesses to evaluate how a business may use social media which
aid the business to development and progression at the expected commercial center (Harris and
Dennis, 2011). It is huge to execute examination in separate point since that will help in decide
the positive just as negative effect of web-based media over business capacities. In any case, the
positive effect primarily help to development of business gainfully at the particular commercial
center while the negative segment is perceived as factor that impact over the organization
activity and prompts decrease in business (Del Chiappa and Baggio, 2015). The another
expectation of executing this examination is the individual premium of the analyst, as the
examiner needs to investigate own thought and acknowledgment according to this particular
region as to achieve viable scholastic records and addition achievement and movement inside
their own and expert information.
Research aim
An examination point essentially communicates the aim of the examination study which
sums up in a solitary sentence what an examiner plan to accomplish toward the finish of the
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exploration venture (Di Pietro, Di Virgilio and Pantano, 2012). The key aim of this is “To
determine positive and negative impact of social media on the business practices of Retail
Company. A study on Amazon”.
Research objectives
The objectives are clear and concise statement that is interconnected with the aim of the
project and also helps in assisting the entire project in right manner to generate valuable
outcome. The key objectives of this specific analysis are defined as under:
To understand concept of social media.
To determine positive and negative impact of social media experienced by Amazon.
To identify ways through which negative impact of social media can be resolve.
Research Hypothesis:
Hypothesis 1: There is positive impact of social media on Amazon.
Hypothesis 2: There is positive relation between understanding of social media and enhancement
of performance of business.
Hypothesis 3: Social media campaign is useful to reduce at least cost of acquisition for
companies.
Hypothesis 4: This is necessary to do enhancement in tools and techniques for Amazon.
Research questions
Research questions are the important area of an investigation as it supports the entire project
in right manner via developing theoretical perspective (Dickinson and et. al., 2014). Therefore,
this section support the entire exploration in aiding the literature in effective manner, the suitable
questions of this analysis that are interconnected with the aim and objectives of the project are
associated as below:
What is the concept of social media?
What are the positive and negative impacts of social media experienced by Amazon?
What are the ways through which negative impact of social media can be resolve?
Literature Review
A literature review can be defined as a simple summary of the resources that are significant
in providing detailed theoretical analysis to enhance individual understanding in relation to a
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specific area. In addition to this, the literature is also recognised as an organisational pattern and
combines both summary and blend to coming to at the expected result. Moreover, the writing
audit is compelling in giving expressive hypothetical point of view which helps the specialist in
improving hypothetical perspective that supports the work in right manner (Egger, 2013). In this
present analysis literature review is imperative in exploring recognition in relation to the aspect
of positive and negative effect of social media on the strategic policies of Retail Company.
Subsequently, in this data is primarily assembled through the help of auxiliary sources like
books, diaries, articles, etc.
The concept of social media.
According to Dollarhide, 2020, social media fundamentally characterized as the PC based
innovation which encourages the sharing of thoughts, musings and the information by means of
the advancement of virtual organization and networks. Along these lines, web-based media is
primarily begun as an approach to interface with people, family and friends for the intention to
establishing effective communication and making the entire globe connected with each other
(Hojeghan and Esfangareh, 2011). Later this computerised technology is widely adopted by the
business that wanted to take benefit of the popular and advance communication tool to reach out
at the customers at wider level. Social media marketing is also defined as the means of
interaction between the people in that that create, share and exchange data and ideas in virtual
communities and networks. In other words of Hudson (2020), social media also recognised as the
website and the applications which are designed to allow people to share content effectively and
quickly in real time. In the world full of digitalisation people is concern over suing social media
tools as the way of communication and wants to be connected with each other at global level.
Therefore, when individual access online media by means of advanced mobile phones
applications, these specialized devices has begun through computer and web-based media can
allude to any web correspondence procedures which permit the client to extensively share
content and draw in through general society. Social media is any computerized procedure which
permits clients to rapidly create and part content with people in general. Accordingly, web-based
media additionally assessed as a wide scope of sites and applications (Singh and Sonnenburg,
2012). A few, similar to Twitter, have some expertise in sharing connections and short composed
messages. Others, as Instagram and YouTube, are worked to upgrade the sharing of photographs
and recordings. Facebook, Snapchat and so on as the sharing of content effectively. The
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advancement of digitalisation has transform the way of conducting business and organisation are
widely concern over implementing digital technologies as the important sources to establish
interconnection with customers and enhance the operations of the business. However, businesses
in the modern era are using social media tools as the specific source of marketing, thus it helps
the business to enhance the brand reputation via increasing awareness among the people about
the business and its effective offerings (Hudson and Thal, 2013). However, suitable
implementation of social media is imperative in nature to enhance the operations of the business
effectively. Despite from this, social media is evaluated as the combination of multiple tools and
applications which involves, Facebook, Twitter, YouTube, Instgram, Snapchat and so on. these
are effective tools of social media which are widely applied by the businesses to enhance
recognition of the business and attract more and more customers towards the business and its
products. Social media now a day’s are widely being applied by the business to aware their
customers about the products and its services, therefore, social media is effective in attracting
customers as people in the modern era are spending a lot time over social media sites and this
defined to be the best approach for the businesses to enhance operations and functions.
Furthermore, social media channels is recognised as conversation aspect as through which an
individual can conduct interaction or communication in efficient manner through sharing data,
views and ideas suitably to each other (Jaeger, 2012). Thus, the another concept of social media
is that which is defined as mostly a visual medium that attract more and more audience towards
the business through rendering them medium of entertainment.
The positive and negative impact of social media experienced by Amazon.
According to Wroblewski, (2020), Social media is defined as a double-edged sword.
Therefore, the positive publicity helps the business in increase the business sales, while negative
publicity can tarnish organisational image. Apart from this, in today’s modern and competitive
business era the web-based media has gotten one of the principal channels for promoting and
publicizing, and its utilization has become a need if the organisation or its functions to remain
visible and stay competitive. Social media has become a basic part of individuals' life, in this
way the organizations utilize web-based media as an apparatus to sell their purchasers, make
their online image and pull in significant buyers (Laudon and Laudon, 2015). Amazon is a large
multinational technology company which is widely concern over enhancing operations with the
utilization of online media and its viable apparatuses to reach at more extensive clients. Social
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media is perceived as an effective power in the present current business time. Hence, with an
aggregate of 4.2 Billion web clients, around 3.3 Billion of them utilize social media as the
approach of their primary need as they use social media for their different purposes like
establishing connection with people, conducting online business and so on. There is a monstrous
extension for the ventures to effectively connect with purchasers on these stages and focus on the
suitable crowd incorporates over their premium. There are varying positive and negative effects
of social media which are mainly being experienced by the Amazon, effectively. However, the
Amazon is a large online service provider brand which is widely implementing Facebook,
LinkedIn, Instagram, Twitter to interface with huge number of clients, offer help, advance new
product, and resolve the issues which are emerges in the execution of online business. Web-
based media is presently a sharp instrument in the promoting plan of numerous organizations, of
all shapes and sizes. Without an on the web occurrence, a business loses its essential competitive
edge. The key positive impact which are being experienced by Amazon are the increasing brand
loyalty, reducing the cost of acquisition and scale, increasing brand reputation, the digital media
also allows a business to respond to customers and make any adjustments quickly, increasing the
reach of the customers (Lo and et. al., 2011). Thus, these are the significant benefits which are
mainly attained by Amazon with the engagement of social media and its effective tools.
According to Jordan (2018), social media also leads a business towards the negative impact as a
negative publicity destroy the image of the business, a negative feedback decreases the number
of potential buyers, time consuming in nature as it takes a lot time in setting up an effective
advertising campaigns, regular monitoring requires, Risk of undesirable or wrong conduct from
web-based media savages, Increasing on the web introduction can possibly pull in chances, for
example, data spills or hacking and so on, thus these are the potential negative impacts which are
effectively being experienced by the business and these aspects has direct negative effect over
the activities and movement of the business.
Despite from this, in between of the tech industry's world class, Amazon remains over all
others as the best for society, therefore, Amazon was situated through 20 percent of the
respondents as having the most positive influence over society among technology businesses
within a new survey. Amazon is a well recognised brand and using social media and its effective
tools to enhance the operations of the business (McCabe, Sharples and Foster, 2012).
The ways through which negative impact of social media can be resolve.
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According to Manipod (2020), social media is defined as an imperative aspect which is
being implemented by the businesses to connect through the friends and family and at the same
time, social media can overwhelm us through news and information. Therefore, social media is
an effective tool which are widely implemented by the business to enhance the operations of the
business widely, thus, social media has also negatively influences the operations of the business.
Amazon is a large multinational online retail business, which has its major concern over
developing the operations of the business and using social media tools as the effective source to
develop the operations of the business (Molz, 2012). However, for resolving the negative impact
of social media like risk of inappropriate behaviour, negative feedback, high cost of advertising
campaign and so on, businesses are concern over implementing effective measures that are
significant in resolving the issues of social media. In which some are associated as below:
Effective employees training: This is the most effective way which is effectively be
implemented by the business to ensure about reducing the bad effective of business effectively.
Therefore, businesses in competitive era are working for an effective objectives and as per the
increasing use of social media in individual’s life, businesses are also concern over implementing
social media as effective tool to enhance the operations of the business. Business is focuses over
providing training to their employees in the manner to providing suitable assistance for
conducting operations effectively (Morrison, 2013). Thus, a suitable guidance helps the business
to operate in effective manner and also training helps an employee to aiding the executions in
systematic way to providing effective customers facilities. Thus, Amazon is focuses over
providing training to their employees for the intention to enhancing the operations of the
business.
Maintaining safety and security aspects: This is also an another effective measure which is
effectively be implement by the business to enhance its operations and progression, however, in
the modern and digital world, people are also facing the issue of safety and security of their
private information as it is also important for the business to take all the safety provocation for
the intention to increasing the operations of the business (Oliveira and Panyik, 2015). In today’s
scenario frauds are increasingly high and people are very much concern over lacking of their
private data, for resolving the safety issues, business needs to apply measures of safety and
ensure customers for making secure purchasing, thus this is supportive for the business to
enhance it operations and functions.
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Suitable analysis of issues: This is also an effective way, which can be implementing by the
businesses to minimizing the negative influence over social media at their workplace. It is basic
for each organization to direct legitimate investigation and decide negative perspectives
associated with the online media on the grounds that as indicated by this administration of an
organization ready to create appropriate systems and plans which prompts progression of
business successfully. However, an effective analysis over the issue of the business helps the
business to enhance the operations of the business. Amazon, and its management are focuses
over providing effective analysis over the issue of the business and a proper analysis aid the
business to enhance its operations (Piercy, 2016).
Effective response of consumer’s request: Customers and clients are the critical part of the
business as the development and improvement of the business depends on the tasks of the
business. For settling the issues that are emerges because of the rise of web-based media and its
tools, businesses are needs to provide quick response over the request of the customers as it is
effective in increasing the faith of buyers over the operations of the business. Amazon is a large
ecommerce company which is widely concern over providing effective response to their buyers
in respect to increasing the operations of the business.
Although, these are the basic angles which are viably being actualized by the business to
improve the tasks of the business and resolve the negative impact of social media. Therefore,
social is mainly implemented by the business to enhance the operations with the support to
enhancing the brand awareness of the business and developing the customer’s base (Ruiz-
Molina, Gil-Saura and Moliner-Velázquez, 2011).
Research Methodology
Research approach is characterized as the particular apparatus and method that is executed
to distinguish select, measure and assess the data according to a particular investigation area. In
the context to an investigation the section of research methodology basically allows the
investigator to critically analyse an investigation entire validity and reliability. Research
methodology basically provides reasonable help to the scientist to help the whole examination in
right way to create important result (Sigala, Christou and Gretzel, 2012). This part of
examination depends on numerous applications which are critical to helping an investigation
over the territory of deciding the positive and negative effect of online media on the strategic
approaches of retail organization, that involves research methodology, approach, philosophy,
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