The Impact of Innovation on Amazon.com's Organisational Development

This report examines the impact of innovation on the organisational development of Amazon.com, an e-commerce giant. It analyzes how Amazon has implemented various innovations to gain a competitive advantage, including disruptive innovation strategies to create new market spaces. The report discusses relevant innovation theories and models, highlighting the role of innovation in attracting a large consumer base and driving growth. It also addresses the challenges faced during innovation implementation and the importance of employee training and creative methods like brainstorming. Both primary and secondary research methods were used to collect data, providing a comprehensive analysis and recommendations for future innovation strategies, such as improved employee communication. The report covers key aspects of organisational development in the e-commerce industry, the benefits of entrepreneurship and innovation synergies, and the challenges Amazon faces in this area, offering valuable insights into Amazon's business practices and strategies.

The impact of innovation on
organisational development in
the on-line business A case
study of Amazon.com

ABSTRACT
In the present report the discussion is made on the impact of innovation on organisational
development of online business. It has been analysed from the research that various innovations
has been implemented by company in order to gain competitive advantage. It has also been
analysed that there are various theories and models related to innovation that has been discussed
in the project. Disruptive innovation means that the market space is been created for the new
products and services. Innovation has assisted the E-commerce company like Amazon in
growing and because of this they have also been able to attract large range of consumers which is
really necessary for growth.
It has also been analysed from the report that various challenges have also been faced
during the time of implementing innovation. Training has been provided to employees in order to
increase their expertise related to being more creative. Company has also adopted various
methods to make employees working in online company more innovative and creative. They
have made use of brain storming sessions. This has assisted firm in bringing new innovations in
market. This has also assisted company in building up their brand reputation which is really
necessary for their growth.
In the report both primary and secondary method have been taken to collect the data
related to research topic. These methods have assisted researchers in gaining the end results and
also it has been analysed by making use of these tools researcher has been able to get answers of
the research questions. Various recommendations to be more innovative has also been made.
Like company has been involved in communicating with employees to take better decisions
during the time of innovation implementation. This has assisted firm in being more productive
and also it helps in enhancing operational efficiency.

CONTENTS
TITLE..............................................................................................................................................2
ABSTRACT....................................................................................................................................2
INTRODUCTION...........................................................................................................................2
LITERATURE REVIEW................................................................................................................6
RESEARCH METHODOLODGY...............................................................................................12
DATA ANALYSIS.......................................................................................................................16
CONCLUSION AND RECOMMENDATION............................................................................31
REFERENCES..............................................................................................................................34
APPENDIX....................................................................................................................................36
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TITLE
Topic
The impact of innovation on organisational development in the on-line business: A case
study of Amazon.com
INTRODUCTION
Innovation can be defined as bringing a change in the existing products and services so
that the consumer needs a satisfaction can be met out. It will also assist the company in gaining
competitive advantage (Si and et. al, 2020). Innovation can have positive impact on the growth
of organisation and it can make the company more productive. It is really necessary for online
business to bring innovative and creative products and services. This can assist them in growing
and also, they will be able to achieve their set target and mission. It has also been analysed that
in order to be innovative it is really necessary for the company to create the market space and
identify proper opportunities. This will assist them in growing and also it will help them in
achieving their set target and mission (Vorbach, Wipfler and Schimpf, 2017). There are various
challenges that can be faced by the company in implementing innovative products and services.
It has been analysed that most of the challenges are being faced by the online company. This has
made hard for them to implement innovation. Innovation has become critical for the modern
economy has the consumers want feasible products and services. It has also been analysed that
online company needs to be more innovative, as this will only help in increasing their market
share and expanding their business. It will also assist the company in achieving their business
objectives which is really necessary for their growth. Innovation can also improve the sales and
customer relationships of E-commerce company.
In this the trust of customers towards the products and services supplied by company
will be increased. This will assist firm in being more innovative and creative. E-commerce
company are also laying huge impact on economy as they are creating so many job opportunities
and also it is really easier for the consumer to start business online. There are no entrance fees
and people can start their online business with few costs. This has assisted company in being
more productive and also their operational efficiency has been increased because of this. They
have been able to gain competitive advantage by serving online and also by being more
innovative (Visnjic, Wiengarten and Neely, 2016). There are also various challenges that can be
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faced like a person has no knowledge related to how to start an online business. So, they need to
increase their expertise in this.
There are also various models of innovation that can be used and implemented by
company. It includes like disruptive model. In this a new market is been created for the existing
products and services sold by the company. This type of innovation when adopted by E-
commerce, this can assist them in attracting large number of consumers. It will help them in
earning profit. For the present report Amazon.com is been selected. It is an American
multinational company which has been settled in Washington. It lays focuses on cloud
computing, digital streaming and artificial intelligence. Company is the world largest e-
commerce websites. It has been analysed that the firm is been involved in providing consumers
with highly innovative products and services which is really necessary to meet their demands.
Present report will lay emphasis on the reviewing of literature on basis of questions framed. It
will also lay focus on the research methods used for completing the project. Assignment will also
provide suitable recommendation to overcome research problem.
Aims:
“To explore Synergies between Entrepreneurship and Innovation on Organisational
Development in the E-commerce Industry”: The case study of Amazon.com
Objectives
 To understand the concept of organisational development in e-commerce industry.
 To identify the benefits of synergies between entrepreneurship and innovation for
Amazon.com
 To explore the challenges faced by company while focussing on organisational
development because of synergies between entrepreneurship and innovation.
Research questions
 What is the concept of organisational development in e-commerce industry?
 What are the benefits of synergies between entrepreneurship and innovation for
Amazon.com?
 What are the challenges faced by company while focussing on organisational
development because of synergies between entrepreneurship and innovation?
Rationale
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Rationale behind choosing this topic for this research is that entrepreneurship and
innovation are two most important factors that can help an organization. Both entrepreneurship
and innovation are inter-related to each other. Combination of both of them can not only help an
organization to flourish but can also help them in sustaining within the market and achieve
success. But many e-commerce organizations are unaware of this synergy, they either focus upon
entrepreneurship or on innovation. This research will help in identifying importance of synergy
between innovation and entrepreneurship, benefits this synergy can provide to organization and
challenges that organizations in this sector can face in developing this synergy in an appropriate
manner.
Structure
This dissertation will consist of six main chapters.
Abstract: In this chapter abstract of overall dissertation will be provided in which overview of
research topic had been provided, methods users for data collection and analysis in order to
achieve main research objectives had been explained.
Introduction: In this chapter overview of research topic with background has been done. Other
than this, in this chapter main aim, objectives, research questions with a brief rationale has been
done.
Literature Review: In this review of literature and secondary data has been done that has been
collected by researcher. This chapter helps in reviewing research that has been done till now in
this research area in order to develop a base for search and enhance overall knowledge of
researcher.
Research Methodology: In this chapter methods that have been used by the research for data
collection and analysis for answering main research questions have been explained with
justification or research because of which those methods have been chosen.
Data Analysis: In this chapter main data analysis of primary data that has been collected till not
has been done. Other than this, in this chapter discussion of both primary and secondary data has
also been done in order to reach to conclusion.
Conclusion and Recommendations: This is the last chapter in which conclusion of overall
dissertation that has been identified has been discussed. This conclusion has been drawn on the
basis of primary and secondary data. Other than this, lastly in this chapter recommendations have
been provided that can be adopted by Amazon has been provided.
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LITERATURE REVIEW
Overview
Literature review is an important part of research study that helps in reviewing secondary
data collected by researcher such as articles, books, journals and many more. In this literature
review concept of organizational development of e-commerce industry will be explained,
benefits of synergy between entrepreneurship and innovation will be explained, and challenges
faced by company while focussing on organisational development because of synergies between
entrepreneurship and innovation will also be discussed.
Theme 1: Concept of organisational development in e-commerce industry
As per the view Visnjic, Wiengarten and Neely, (2016) the organisation can only be
developed when the e-commerce industry is been involved in making use of various innovative
services. This will assist company in growing and also it can support the company in expanding
their online business. It has been analysed that business will be able to enhance their existing
process and services by making use of innovation. This is one of the fastest ways to develop
organisation. By improving existing services through innovative ways lots of consumers can also
attracted by this. This strategy is also really useful for the online companies like Amazon.com. It
has been analysed that this company is already being established despite being this, they should
be innovative in every aspect in order to remain in competition and establish their monopoly all
over the time.
On the other hand, Brand and Blok, (2019) has argued that the development of
organisation not only depends on the innovation. It can also be dependent on prices of goods
services and quality they are offering. It also depends on viable organisation structure and the
responsibilities being taken by employees in order to make their company grow. Thus, for
organisational development only innovation is not necessary, the e-commerce online company
needs to work on every aspect.
In the opinion of Santos, Rezende and Basso, (2019) introduction of innovation in their
online sites can assist company in being more productive and also their costs related to
transactions can be reduced. This is really beneficial for the growth of organisation like Amazon.
organisational development refers to objective dependent approach towards system alteration.
This allows firms within building as well as sustaining a new desired state. -commerce implies
having services (selling along with buying) over internet network. This can take in different
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manners that is B2B, B2C, C2C and C2B. Consumers needs are changing from time to time and
by this they can opt for selecting the products and services from E-commerce. This can assist
firm in growing and also, they will be able to enhance their operational efficiency and
productivity with the help of this. For development of organisation better relationship needs to be
maintained with other business and consumers. This can assist in being in market for high
amount of time and also it will help company in creating monopoly. Better training for making
use of new and innovative online tools and techniques can also be given so that organisation can
be developed. This will help in increasing the return on investment. The decisions in company
needs to be taken according to preferences of consumers. This can assist in developing firm and
they will also be able to gain competitive advantage. This will help them in reaching to
maximum people and also brand loyalty and reputation can be created with the help of this. It
will also assist the company in being in race for number one and they can establish their
monopoly. This is really necessary for growth of company.
It has further been explained by Anning-Dorson and et.al., (2017) organizational development is
one of the most important factors which is required to be focused upon by organization in order
to sustain within the market in which they operate and gain competitive advantage. It is directly
related to success of an organization and impacts each and every aspect of decision making. E-
commerce industry is one such industry that has high competition level. In order to maintain
effectivity and productivity of employees and staff members it is importance for them to focus
upon maintaining organization development. It also helps e-commerce organization to identify
and resolve any kind of issue or problem faced by them in a much easier and appropriate manner.
Theme 2: Benefits of synergies between entrepreneurship and innovation for Amazon.com
As per the opinion of Bouncken, Kraus and Roig-Tierno, (2019) entrepreneurship
includes the readiness and skills of an individual which can be useful in running business and
making it more feasible. The entrepreneur in first case needs to be innovative enough who can
adjust to dynamic market conditions. They also should have innovative idea that is been liked
and accepted by consumers. Innovation means as bringing a change in the existing products and
services so that the consumer needs a satisfaction can be met out. Amazon.com is the result of an
innovative start-up but to be in market regular innovation needs to be implemented by company.
This also be useful for the company to gain competitive edge.
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By coming up in the market entrepreneur can make use of disruptive innovation. As
described by Rangus and Slavec, (2017) Amazon.com can make use of this. It is basically a
process in which existing market is broke by bringing a new product and service. Firstly, the
product is been brought at lower price and after that when the demand increases the price also
increase. This can be used by Amazon in order to establish the name of their company in new
market. It can also support firm in increasing their profitability. For this there must be synergy
between entrepreneurship and innovation. Entrepreneurship and Innovation are positively related
to each other and interact to help an organization to flourish. These both are complementary to
each other; it is really useful for creating sustainability and success of organisation. Entrepreneur
has provided with the responsibility to identify opportunities in E-commerce websites. This will
be really beneficial for the growth of Amazon.com. In this the entrepreneurs needs to think upon
whether to work on internet operations of company or give it to the internet specialist. This will
help them in being more productive.
As per the opinion of Ortiz-Villajos and Sotoca, (2018) the entrepreneurs of Amazon.com
needs to be more innovative and they must be working towards bringing changes in lives of
people every day. This will help them in diverting minds of consumers and also, they will be
able to achieve their set target and objectives. This has assisted company in being more
productive and also their operational efficiency has been increased because of this. They have
been able to gain competitive advantage by serving online and also by being more innovative. It
has also been analysed for being more innovative proper training needs to be given so that better
services can be provided. E-commerce has the most positive disruptions. Like for growing
Amazon.com can be involved in targeting the niche segments. They need to have proper
understanding of the target audience and the patterns of their consumptions and also about their
buying behaviour. This is an entrepreneur responsibility to have an idea about all this. They
should also be engaged in identifying e-commerce trends.
Further explained by Yun and et.al., (2016) focusing upon interconnection of
entrepreneurship and innovation is important for organizations especially for organizations like
Amazon.com for maintaining high organizational development rate and maintaining high
flexibility within organization. One of the main Benefits of synergies between entrepreneurship
and innovation is that it helps in enhancing overall performance of employees, increasing overall
satisfaction level of customers. Not only this, it further helps in identification of any kind of
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problem which is being faced by employees and customers in a much appropriate and accurate
manner. This synergy helps an organization to flourish, gain competitive advantage, bring
required changes within business and focus upon organizational development in a much better
And appropriate manner. It can also be said that it can help Amazon.com to remain competitive
in market and maintain high customer satisfaction level.
Theme 3 Challenges faced by company while focussing on organisational development because
of synergies between entrepreneurship and innovation
According to the view of Said and Shah, (2017) Organizational development is one of the
most important factors which is required to be focused upon by companies for achieving
continuous growth and development and for this, it is important for organizations to focus upon
entrepreneurship and innovation. It has been observed that there is a strong synergy between
both of them. Working on both innovation and entrepreneurship can help an organization in
bringing positive development within organization. Combination of these two is important for
firms to achieve success, sustain within the market in which they operate and it is important for
change dynamics as well for development. By this relationship can many times increase different
kinds of issues or challenges for companies because of which focusing upon continuous
development can become difficult for them. There are various kinds of challenges that can be
faced by organizations when they focus upon organizational development. These challenges can
impact successful planning and development of organization. These problems or challenges
majorly arise within an organization due to lack of clear direction, lack of developing objectives
required to be achieved or due to ineffective communication of organizational development
objectives to employees and staff members.
As per the view of Lau, Lee and Chung, (2019) If an organization wants to focus upon
continuous development then they need to work upon entrepreneurship and innovation
simultaneously and it can only be done if firm has developed clear aim, objectives of
organizational development that that focuses upon both effective entrepreneurship as well as on
innovation. If synergy of both of them are not focused upon then business can face some serious
challenges that can work as a barrier in terms of development for business. Some of these
challenges are: managing overall performance in order to increase their overall accountability.
Management of performance of staff members and employees is a challenge for organizations
that can work as a barrier in terms of development. If an organization fails to enhance or
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maintain a certain level of performance of staff members then it can result in decreasing rate of
development which can further result in reduced accountability of work. This can provide
advantage to competitors and they might step ahead of competition and organization can result in
losing competitive advantage. This impact on overall performance of employees is main result of
lack in coordination of entrepreneurship and innovation. If business succeed in maintaining
synergy between both then they can also successfully overcome this challenge and maintain high
performance of employees. Today it has become important for organizations to focus upon
innovation in order to remain ahead in competition.
In accordance to the view point of Stensaker and et.al., (2017) there are many other kinds of
challenges that can work as a barrier in organizational development as a result of failed synergy
of innovation and entrepreneurship. Some of the main challenges are: addressing feedback and
lack in awareness of organizational challenges required to be brought. This lack of awareness
and not addressing feedback is due to less effective relationship between employees and
employer. Lack of awareness related to required organizational change and not focusing upon
feedback can not only impact overall performance of employees and can demotivate them but it
can also impact satisfaction level of customers. Many times, entrepreneurship helps in
development of innovative programs that can help a company in maintaining continuous
development but for development of innovative program. In order to maintain effectively and
productivity of employees and staff members it is importance for them to focus upon maintaining
organization development. It also helps e-commerce organization to identify and resolve any
kind of issue or problem faced by them in a much easier and appropriate manner. This will assist
them in getting and overcoming the problems which has been faced by them. They can increase
their productivity.
According to the view of Singh and Kaur, (2020) if organization do not focus upon
addressing employees and customers feedback then it makes it a bit difficult for firm to identify
main organizational priorities that are required to be focused upon doe successful development
and growth of organization. Amazon.com need to focus upon their employee’s priorities, their
current performance, analyse feedback provided by them. This will help Amazon.com to identify
priority areas in which development is required. This analysis will further help them to develop
an innovative plan though entrepreneurship for organizational development and remaining ahead
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of competition by gaining competitive advantage. If it is not focused upon in an appropriate
manner then it can create many other kinds of challenges for Amazon.com like management of
remote employees. This challenge can work as a barrier in achievement of desired organizational
aim and objectives. These problems or challenges majorly arise within an organization due to
lack of clear direction, lack of developing objectives required to be achieved or due to ineffective
communication of organizational development objectives to employees and staff members.
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