Managing Across Borders: E-business and E-commerce in Amazon (HI5013)

This report examines the transformative impact of e-business and e-commerce on Amazon's business model. It explores how Amazon has evolved from a traditional bookseller to a global e-retail giant through the strategic implementation of e-commerce and e-business. The report highlights the crucial role of these strategies in enhancing customer relationships, improving supply chain management, and driving cost efficiency. It differentiates between e-commerce and e-business, emphasizing the latter's broader scope, which encompasses internal processes like manufacturing and inventory management. The analysis covers both B2B and B2C applications, illustrating how Amazon leverages e-business platforms to build strong customer relations and offer diverse services, including e-reader and e-book offerings. The report also analyzes the importance of e-business and e-commerce in the current business world, especially for Amazon, and provides a detailed account of the company's e-commerce and e-business strategies, including its use of electronic networks to connect stakeholders, and offers a conclusion about the transformation of the business world from traditional trend to electronic business market and its impact on the company.

Running Head: MANAGING ACROSS BORDERS
Amazon
Managing across borders
Report
Student Name
[Pick the date]

MANAGING ACROSS BORDERS 1
Executive summary
This report is focused on the transformation of traditional business into E-business. It also
includes elements which are linked with e-commerce and e-business that offers better
opportunity to improve the business process of the Amazon Company. In addition, this report
also includes the role played by e-commerce and e-business in the present business of Amazon
and the changes which they have implemented in the current market. It also includes a journey in
which e-commerce and e-business have improved the current situation of the company in the
business market by offering them cost-efficiency.

MANAGING ACROSS BORDERS 2
Table of Contents
Introduction.................................................................................................................................................3
Opinion of e-business and e-commerce......................................................................................................3
Role of e-business and E-commerce in the present world related to Amazon............................................4
Conclusion...................................................................................................................................................5

MANAGING ACROSS BORDERS 3
Role of E-commerce and E-business in present business world
Introduction
Current business world is in dynamic mode and in order to remain sustainable in this dynamic
business world, e-commerce and e-business has a key component of every business strategy in
order to attain economic development. It has been found that combination of both information as
well as communication has advanced the relationship between all the stakeholders of the
business market (Jimenez, Valdes and Salinas, 2019). E-commerce and e-business have
improved the quality of business operations by encouraging customer participation in the
business market. This has helped the organization in lower down the price and offer customized
products/services in the market as per the customer requirement. Rise of internet and web-based
technology has transformed traditional market business into electronic-based market with the
support of e-commerce and E-business (Wang et al., 2018). These platforms are considered the
best opportunities in the hands of the present organization to make better use of their available
resources such as skills and capital in an effective way. E-commerce and E-business have also
improved the business operations of both small and medium scale enterprises which were
struggling while competing with large and rich capital business. Due to globalization, various
developing nations are offered access to enter into the global market in which they can meet
economic development.
Opinion of e-business and e-commerce
As per the study, it has been found that in few cases, it has been found that e-business and e-
commerce terms are applied interchangeably in order to link it with the vendor system. But both
these terms provide different services in case of Amazon organization. E term mainly stands for
the use of electronic networks which are connected with the application of technology and
includes both internets as well as exchange of electronic data which enhances the business
process (Adaji and Vassileva, 2017). Amazon links their e-commerce are linked with outward-
facing processes which connect clients, vendors, and other business partners that help in
increasing sales, offering quality delivery along with high customer care services. It also includes
buying of raw materials, operating cost related to products like office. Amazon believes that it is
essential to introduce a new business model which has the potential to generate revenue in order

MANAGING ACROSS BORDERS 4
to maintain the current position of the organization (Kim and Peterson, 2017). While E-business
can be considered as a big platform which includes e-commerce along with other internal
approach which is essential from the business point of view such as manufacturing, inventory
management, operations, finance, HRM and so on. E- Business strategies are often considered
complex in nature and are more concentrated towards improving the internal process which can
help the organization in reducing operating cost along with efficiency in business operations.
Currently, it has become very essential for companies to make use of e-commerce strategy in
order to generate a unique presence in the business market (Nathan et al., 2019). Use of
electronic network helps the Amazon to build a close relationship with the potential customer as
well as vendors which offer supply support. But due to heavy fluctuation in the business market,
it has become very essential for the Amazon to move further from e-commerce to e-business
because it will help them to build a customer-centric business network with the help of advanced
ERP system. For Amazon Company, e-commerce benefits have some saturation point beyond
which it cannot move but when it comes to E-business it offers big opportunities in the form of
effective supply chain system along with enhanced ERP system which helps in eliminating the
chances of conflicts within the different departments of the organization.
Role of e-business and E-commerce in the present world related to
Amazon
It has been seen that Amazon has not limited its business operations related to e-business and e-
commerce up to them. In fact, they have also involved their various investors to take benefit of
this strategy in the form of B2B as well as B2C applications. In business to business service,
Amazon makes use of E-business platform which offers them opportunity to effectively business
a strong relations with the customers by which they can sell their products directly within the
affordable fee in the form of transaction or in the form of subscriptions (Smith, 2019). In
addition e-business platform has offered Amazon Company to develop an effective payment
service by which organization is able to receive the payment through their websites directly from
the customer in the form of Amazon account. While E-commerce platform has helped Amazon
to generate an advance supply based service which supports Amazon Company in sell all the
required industrial materials which include offices appliances to shipping materials to the
potential customer (Cosper, 2019). This strategy also helps them to set up a delegation which is

MANAGING ACROSS BORDERS 5
linked with the order packing which supports shipping of items right from Amazon warehouses
to various part of the country which offers this service a unique presence in the present business
market. In case of business to customer, e-commerce strategy has helped Amazon to advance its
business operations as compared to business to business structure. With the help of E-commerce
strategy Amazon is able to create page for their sellers in order to list their product on this page
which also indirectly helps potential customer to see varieties of items. In addition, E- business
strategy has helped Amazon to enter directly in the digital world in the form of e-reader Kindle
well as e-books which have benefited both companies as well as the vendors associated with
company. One of the best examples is Amazon prime service which offers potential customer to
buy instant videos on discounted prices which were not possible earlier. This creative thinking
has helped the Amazon to mark their strong position in current competitive business market.
Amazon prime service has offered one of the best competitive advantages to the Amazon over
other organizations present in the business market.
Conclusion
E-commerce and E- business services have completely transformed the business world from
traditional trend to electronic business market. It has offers both type of benefits cost as well as
speed which has increased the efficiency of the business operations. E- Commerce and E-
business has helped the Amazon Company to transform their bookselling service into one of the
biggest e- retail giant company on the global platform. These strategies have aid Amazon to form
a web of the electronic network which has helped them to bond all the stakeholders of the
business with one single thread. In addition, these strategies have helped Amazon in build very
unique image in the business market because of which Amazon was successful in developing one
of the strongest customer bases in the retail market.

MANAGING ACROSS BORDERS 6
References
Adaji, I. and Vassileva, J. (2017) April. Perceived effectiveness, credibility and continuance
intention in e-commerce: a study of Amazon. In International Conference on Persuasive
Technology (pp. 293-306). Springer, Cham.
Cosper, A. (2019) Description of How Amazon Uses eBusiness and eCommerce for B2B and
B2C [online]. Available from: https://smallbusiness.chron.com/description-amazon-uses-
ebusiness-ecommerce-b2b-b2c-36453.html [Accessed 128/19].
Jimenez, D., Valdes, S. and Salinas, M. (2019) Popularity Comparison between E-Commerce
and Traditional Retail Business. International Journal of Technology for Business, 1(1), pp.10-
16.
Kim, Y. and Peterson, R.A. (2017) A Meta-analysis of Online Trust Relationships in E-
commerce. Journal of Interactive Marketing, 38, pp.44-54.
Laemmel, J., Alon, I. and Vega, D. (2019) Alkosto faces up to Amazon in Colombia's e‐
commerce market. Global Business and Organizational Excellence, 38(6), pp.31-41.
Nathan, R.J., Victor, V., Gan, C.L. and Kot, S. (2019) Electronic commerce for home-based
businesses in emerging and developed economy. Eurasian Business Review, pp.1-21.
Smith,C. (2019) How Amazon Uses E-Business for B2B [online]. Available from:
https://smallbusiness.chron.com/amazon-uses-ebusiness-b2b-34155.html [Accessed 12/8/19].
Wang, Y., Jia, F., Schoenherr, T. and Gong, Y. (2018) Supply Chain-Based Business Model
Innovation: The Case of a Cross-Border E-Commerce Company. Sustainability, 10(12), p.4362.
Wu, P.J. and Lin, K.C. (2018) Unstructured big data analytics for retrieving e-commerce
logistics knowledge. Telematics and Informatics, 35(1), pp.237-244.
Yu, Y., Wang, X., Zhong, R.Y. and Huang, G.Q. (2017) E-commerce logistics in supply chain
management: Implementations and future perspective in furniture industry. Industrial
Management & Data Systems, 117(10), pp.2263-2286.

MANAGING ACROSS BORDERS 7