Critical Evaluation of Amazon's Knowledge Management System Report

This report provides a comprehensive analysis of Amazon's knowledge management system. It begins with an introduction to knowledge management and its importance, followed by an organizational profile of Amazon, detailing its main activities, history, location, and staff demographics. The core of the report includes a SWOT analysis of Amazon's knowledge management system, identifying its strengths, weaknesses, opportunities, and threats. Furthermore, the report critically evaluates the knowledge management system, discussing its value chain and strategic implications. The analysis covers various aspects such as inbound and outbound logistics, operations, and services, highlighting how Amazon leverages technology and a global presence to maintain its competitive edge. The report concludes with recommendations for improvement, aiming to optimize Amazon's knowledge management practices and ensure its continued success in the e-commerce and technology sectors.

Knowledge
management

Table of Contents
Knowledge management..................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1: Organisation profile.........................................................................................................3
Main activities.............................................................................................................................3
Location of organisation..............................................................................................................5
Staff profile..................................................................................................................................5
TASK 2: SWOT of knowledge management system......................................................................6
TASK 3: Critical evaluation of knowledge management system....................................................9
Knowledge management value chain..........................................................................................9
TASK 4: Conclusion and Recommendation..................................................................................11
REFERENCES..............................................................................................................................14

INTRODUCTION
The knowledge management is most essential process in business that will leads to create,
share as well as manage overall information and knowledge of organisation. This is one type of
multidisciplinary approach in order to accomplish organisational objective so that they make best
use of knowledge and information (Ahmad and et.al., 2017). The main reason of managing
organisational knowledge as it enhance the level of efficiency towards ability and decision
making of company. This will leads to ensure employee accessibility so that they can turn around
overall expertise into smart working culture and company can take advantage of more benefit in
quick informed decision making. In terms of history of knowledge management it has been
developed by Druckers in 1970s as this term is originated in consulting community while
recognising importance of information and knowledge. There is great difference among data,
information and system. Here data convert into valuable information, that movement information
is getting processed, store by machine or person then it convert into actual knowledge. The
chosen organisation in this report is Amazon. It is leading multinational technology company
founded by Jeff Bezos. The report purpose aims towards analysis of organisation profile along
with SWOT of knowledge management system. The report involve critical evaluation of
knowledge management system.
MAIN BODY
TASK 1: Organisation profile
Main activities
History of Amazon- As per brief history of Amazon, it is hard to believe that founder of
Amazon started this company with garage. Jeff bezos initially launched online book store in
order to build more innovative concept across the globe (Al-Emran and et.al., 2018). At the
stating face the employee of this company it self pack demanded book and then post it with aid
post office to its final destination. In 26 years back Amazon started business as online book seller
then shifting its business towards Ecommerce, information technology, artificial intelligence etc.

Jeff Bezos established this company in 1994. Before opining online book seller it also started
selling music video.
Amazon Do- This is one of the biggest internet based company that deals in music,
movies, selling books, house ware, toys, electronics etc. many goods that is directly sell to
consumer without middle man (Balasubramanian, 2019). The Amazon does variety of services
or product offerings across the world with use of internet that is retail goods, Amazon prime,
Consumer electronics, digital content, Amazon video, Delivery, Amazon business, Amazon
Drive, Private labels and exclusive marketing arrangements, Amazon publishing, Amazon web
service, Amazon smile etc. The company focus upon delivering renting data storage company in
terms of cloud computing on internet. It also delivers Kindle e- books in order to promote e-
publisher.
Amazon primary activities- The primary activities of Amazon consist of Inbound
Logistics, Operation, Outbound logistics, and services.
 Inbound Logistics- In this it covers technology advancement as well as selective
procurement that leads towards filter choice in terms of services or product. It will be
done from retailer or producer so that target consumer gets safest transaction. Amazon is
grateful to provide benefit without any overhead or stock carry towards book order in
place of distributer.
 Operation-Amazon is well organised with reference to operation into overseas that
combine north America. Here company utilise high level of technology warehouse
effective model.
 Outbound logistics- Amazon create in house distribution system with proper
optimization during its distribution and supply chain management (Centobelli, 2017).
This will full of software strategist technology. They prefer some outsourcing towards
USP and USPS sales and marketing. This will uplift high level of revenue in division of
sales due to reason decline in price of consumer and strengthen high income at the
international division.
 Services- The company uses most of the services of online technique to advertise in
order to secure shopping experience. Here Amazon review overall product range along
with recommendation.

Amazon operate within- Amazon is largest company that operates within sector or industry
is cloud computing, e- commerce, electronics, entrainment, e-commerce, artificial intelligence
and digital distribution in terms of self driving cars. The company major revenue operated or
generated from these sector or industry.
Location of organisation
Amazon based –The company is based upon multiple countries as they deliver its product
or service across the globe. In its websites company options for changing account setting for its
consumer base.
Does Amazon have sites, head office , single location? How many sites it have?
The company head office is in Seattle, Washington, UK (Dayan, 2017). Amazon have global
headquarter more than 40 in terms of leased or owned across the world. The company has
multiple sites in current scenario it has 110 active centres in country US as well as 185 centres
across the globe.
Different geographical areas with different focus? Specific activity across all sites
Yes Amazon has different perspective of focus upon different geographical areas as the country
specific so that its business can sustain in log term while fulfilling demand, preference and
choice as per country specific people. That is why their activity vary across the all centres or
sites.
Staff profile
Demographic of workplace- The Amazon company recruit people in terms of diverse
background in order to support its inclusive workplace. This will step out to facilitates employee
sense of belongings so that it can deliver value and opportunity (Dneprovskaya and et.al., 2018).
They has 13 affinity groups, that consist of more than 87000 of employee around the world. As
per company data, Amazon employee of entry as well as middle level leads to cover more than
31% in terms of corporate employee. Where as Black, Latino employee consist of 7 % of
workforce. The employee in Asian country are 35% along with white employee involve 4%.
Organisation hierarchy- Amazon has adopted functional structure of organisational
hierarchy. Here the structure aims towards business operation and function in order to interact
with elements of organisation.
 Global function based- Function-based cluster are the effective feature of Organization
hierarchy. Every chief commerce function has a enthusiastic cluster or team, beside with a

higher manager. The considered objective is have structural trait in order to facilitate
Amazon.com to make easy victorious e-commerce operation administration during the
complete association. Bearing in mind its continuing global extension, the corporation
enhance from side to side this characteristic of corporate arrangement in conditions of
ascertain operations in fresh markets. The next are main function-based cluster in
organizational structure or hierarchy of Amazon that is Office of the CEO, Amazon Web
Services (AWS), Business Development, Finance, Accounting, International Consumer
Business, Legal and Secretariat and Consumer Business.
 Global hierarchy- Hierarchy is one of the traditional managerial structural traits. In context
of Amazon, quality is uttered in provisos of a international structure of perpendicular lines of
charge and power that manipulate online retail business. Example senior managers
commands are functional all the way through the business, moving all appropriate offices of
company globally. The strategic purpose of this trait of corporate arrangement is to make
easy managerial organize of Amazon’s whole business.
 Geographic division- Amazon’s organizational hierarchy also engage in geographic
divisions. In structural trait, cluster are support on geographic regions and connected business
purpose (Ferraris and et.al., 2019). Example, Amazon apply geographic divisions to
compose in handle the e-commerce trade support on economic circumstances of assured
regions. The strategic purpose in have trait of the company structure is to allow the business
to deal with issues or apprehension significant to every geographic area, bearing in mind
dissimilarity among regional marketplace. Amazon has adopted approach for structural
characteristic, connecting the next geographic separation in its operation that is North
America and International.
TASK 2: SWOT of knowledge management system
The Amazon is one of the leading retail business online taking place. It is most successful
that implemented physical, brick and mortar for effective online presence (Farooq, 2019). They
manage and deliver better service similarly one of its greatest competitors Walmart that are
famous for its global pricing strategy. On the other hand Amazon take lots of opportunity in
order to explore global market through its effective use of supply chain that provide more value
to company and stakeholders. In terms of its knowledge management system Amazon SWOT
analysis is done are as follows-

Strength- This is biggest strength of company as it is leading brand on online to deliver
more better service in knowledge management services. There primary activity are strategies in
three pronged. It consist cost leadership, differentiation as well as focus. The strategy of
knowledge management system are turns into result of reaping gains of company in period of
action that aid in shareholder value drives in knowledge management. As a result Amazon easily
focus upon competitive edge with the help of full advantage of information technology use at
advance level. They ensure e- commerce into easy ramp up structure in order to facilitates
company knowledge management system as compare to its competitors (Giampaoli, 2017). The
ultimate strength of Amazon that it operates at global level of consumer so that they can
recognise its brand awareness while entering into exclusive global market in order to tie up with
many e-commerce website. They are very effective in outstanding logistics and high level
distribution system so that it will cover all needs of consumer desire with best result so that they
can compete with High level competitors.
Weaknesses- With growing years Amazon gets its knowledge management system into next
level by shifting diversification strategy which focus to cover core competence. The shift involve
from online selling books to other segmented area (Hislop, 2018). This is great opportunity but
this may lose its advantage while focusing upon core competence advantage with strategic
knowledge management system. Company provide free shipping services to consumer that act as
weakness as they can lose the profit margin at high optimise level. Through this it cannot take
full advantage of knowledge management system to manage cost strategy. Company only focus
upon online platform but they can also expand its market base in emerging market. The main
weaknesses of Amazon that they implement Zero margin model of business that may influence
its profitability ratio with high volume of revenue.
Opportunity- The Amazon company based upon online platform and payment systems so it
is their huge opportunity to make online payment in more safe and secure way so that its
consumer does not feel any harm in order to rescue safety and security of consumer transaction
payment. That is why they need to develop more improvised way to enhance company margins
by its own payment gateway. Company other opportunity that they must sell its own brand
product rather than involving another third party. This provide effective opportunity to deliver
own product instead of other several brand or partners products. Amazon can improve its
portfolio offerings so that it can position its strength into high revenue through stocks of product

offerings. Another opportunity of Amazon as it must keep on enlarging its global presence
introducing more sities of emergent market in order to develop more competitive market.
Threat- The leading threat of Amazon towards its success as its high competitors are
equally delivering services on online platform. They need to work upon improving hacking
details of consumer so that no data can be exposed and company can optimize its knowledge
management system. They must move with concerning their consumer in order to ensure privacy
as well as security through guarantee (Kianto and et.al., 2019). The company follow aggressive
strategy of pricing so that they may fail to practice lawsuit in terms of publisher. Their cost
leadership strategy becomes threat for company as its business partners are putting off its
products from Amazon website. Another threat of Amazon as from local market as their
knowledge management system is much better as which strategy will leads to more revenue
creation. The company can lose sight vision local strategy while operating at global level.
Resource based view of Amazon- The is popularly known as VRIO model that is one
strategic tool for examine resource, strategic advantage and level of competition. It will
determine long term competitive edge along with critical evaluation of resources as well as
capability. In context of Amazon, It consist of Value, rare, Inimitable, Organization element.
 Value-The more competency in value aid Amazon in exploring its opportunity removing
its threat in terms of internal and external environment. The company successfully
maintain its value or brand name in eyes of potential consumer as they accomplish its all
responsibility by implementation of CSR activities. It always introduce unique product
range with proper maintain competence level (Liebowitz, 2019). The company enjoy
recognized image of its brand with long term investment. They deliver high value with
its distribution system by providing them extremely accessible to its supplier. This will
ensure appropriate relationship among global supplier. It always deliver value through
innovative propensity in product range while managing economies of scale and
operating cost. The company has high value ability at raising capital sue to it is large
conglomerate company that can raise fund internally and externally in order to grab
potential opportunity into emergent market.
 Rare-The presence at international level is rarely found in its competitors as Amazon
operates in multiple regions. It has global heritage as well as experience and explore
more culture to raise revenue. As they have high quality team work that is rarely found so

they are much capable to solve problem with advance level of skill sets. This will develop
rare innovation into market place. The company has rare risk taking characteristics that
examine opportunity and then take benefit in long terms for business growth. They
features of Amazon that is adaptability is rarely found in order to exposure of global
culture while engaging cultural into penetration of local market.
 Inimitable- The quality of product range is hard to imitate by its competitors as their
resources are inimitable. The company is operating its business at multiple stores hat is
hard to inimitable. The marketing communication, competitive pricing, customer
experience are highly Inimitable that can be done with high cost and expertise.
 Organization- The resources are very unique of Amazon, the organization is much
stronger in financial strength, technology integration and advancement, Employee
training, expand high investment in research department, Distribution channel is very
effective that penetrate market (Nair, 2020). The organization of Amazon is successfully
maintain corporate leadership vision, High production capacity, well organized human
resource, effective organization culture, strong marketing strategy.
TASK 3: Critical evaluation of knowledge management system
Knowledge management value chain
The Amazon has developed its brand name through its knowledge management based
value chain (Mc Evoy, 2019). Amazon value chain combines of knowledge management
combines of two segment that is primary and support activities.
Amazon Primary activities
The knowledge management value chain, primary activities aid in gaining raw material and
transform it by delivering value to the consumer.
 Inbound Logistics-This will refers as organisation activity foe obtaining raw material.
As the company usually does not have own goods range offerings. This will deliver
useful information or platform for other business to sell its respective product range.
They does not have too long supplier or contact. That is why they introduced its own

FBA service to handle supplier inbound logistics. Knowledge management value chain
update inventory stock level to the warehouse of Amazon so that it can update
information about its logistics, consumer service, as well as return.
 Operations- This will leads to cover all activities that transform raw material up to
finished items. Here it consist international segment to fulfil the purpose of global
consumer base (Razzaq and et.al., 2019). That is why company develop Amazon web
service that deals in storage, computing, cloud infrastructure or data base in order to
deliver valuable information.
 Outbound logistics-This involve main activities such as storing, distribution or moving
the final consumption goods. For this company accomplish centres with robotic
technology to manage inventories. This will leads towards managing, storing or shipping
demanded product across the globe. Here outbound logistic beyond its centre for
delivering online physical product range with their effective delivering system.
 Marketing and Sales- The marketing and sales related with the promotions of actual
product range that company sell worldwide. This will aid in increasing sale with effect of
advertisement expenditure (Sousa, 2019). They develop own marketing campaign to
promote its product range.
 Services- Company work upon exceptional services with source of competitive
advantage through variety of product range with help of its prime better services and
programmes. This will ensure more sales and better possible experience of consumer.
Amazon Support activities
Knowledge management of support activities value chain promote the activities of business plan.
Firm infrastructure- This will consist of firm and its management activities. Here
Amazon puts maximum efforts to support online business by adopting new advance knowledge
technology for example cloud computing.
Human resource-It involve in managing human capital of organization who execute or
work operate business activity. Company provide them proper training so that they will deliver
their best services in order to successful completion of its primary activity.
Technology development-Amazon utilise full benefit of technology and ensure
productivity along with innovation. This will help in its operational activity to complete on time
and deliver unique product to consumer. This will facilitates digital streaming services such as

Amazon prime video, cloud business, AWS services etc. This will leads towards more shiftiest
towards artificial intelligence market that uplift business and achieve competitive edge.
Procurement- The ultimate process of Amazon aid towards sales and operational
department. With the help of this it will forecast sales to keep track of inventory position on time
while distribution. This will determine forecasting inventory level with proper specific amount to
update competitive edge of company.
Model of SECI
In Amazon SECI model aid in improving knowledge management value chain of
company as its support operations of entity (Wang, 2019). This is one of the knowledge creator
as well as transfer of theory in order to ensure appropriate knowledge management value chain.
Socialisation-This will leads to ensure tacit, knowledge must be spread with help of
practice, observation, guidance or imitation.
Externalisation-It covers explicit, It is deemed to access particular difficulty that may
leads to cover important conversion mechanism through manuals or documents.
Combination-It leads towards explicit to explicit, it is in form of simple to codified
knowledge to get together new knowledge.
Internalisation- This is form of Explicit to tacit as sources are learned with internalized or
modify tacit knowledge.
TASK 4: Conclusion and Recommendation
From the above report it has been concluded that Amazon company is doing great in terms of
information knowledge management system as the analysis of SWOT, VRIO and value chain of
Amazon company knowledge (Webb, 2017). As per the changing environment company need
some recommendation in order to improve its performance to manage competitive edge that is
mention below-
 previous to kickoff information formation, it is significant to describe a procedure launch
the limitation for programme. This power need you to recognize and manuscript the
commerce trouble that require declaration and drivers to give good reason for functioning

of information organization. Information management can assist by means of a lot of
business proposal like, improving self-services, ticket deflection, taking advantage of AI,
employee on-boarding etc. The most excellent method to begin is by lettering a catalogue
of immediate and lasting goals. This strength appear similar to an clear primary aim, but
lacking thoughtful what Amazon want to attain with a fresh knowledge management
instrument, the execution can be tough.
 Productively put into practice a fresh information management clarification need changes
inside Amazon. Workers will contain to acclimatize the means they imprison and split
knowledge, in a number of example, persons strength still resist a novel knowledge-
driven customs. For this cause, it is necessary to arrive at out workers at all point
crossways the dissimilar departments that will give confidence information contribution
behaviors and give precious feedback to execution team.
 Process preparation have to be confirm previous to in fact put into practice. Amazon
do not obtain the instance to sufficiently describe their information management
procedure are improbable to get together their distinct aim. Having a well-built
considerate of how information is shaped, regarded as, and mutual inside Amazon will
give way the most excellent likely results.
 From the start, it is most excellent that management have a able to be seen role
knowledge management proposal. management squad have to be concerned with aim
and objectives and mainly significantly be energetic on the stage. Active contribution
from the management team will show to whole company how significant this
information proposal is and determination is a straight indication of how gravely
employees will obtain this modify.
 following Amazon have recognized aim and objectives, urbanized a transform
management approach, well-known a initial process, and drawn in management, to assess
the present condition of information running within company. A representative
knowledge administration appraisal have to have an general idea of the present condition,
the breach among the present and wanted condition, and the suggestion for final said