Reference no: EM133344660
Case Study: AMAZON The Internet retailer, Amazon is a well-known name for savvy online customers in America. But if you live in any other international country, the name may be completely foreign. Amazon is working to change that, and they are up against some stiff competition. With the prospect of international trade, sellers face real challenges such as navigating laws and regulations, taxes, shipping costs, language barriers, and cultural complexities. Amazon is testing and implementing strategies to overcome these barriers, to include heavy investment in their foreign infrastructure, and experiments for entering the logistics game. Amazon provides some of the highest customer satisfaction by decreases the wait between checkout and delivery to their customer's front door. While Amazon can boast over 155 fulfilment centers around the world, Amazon will build on this successful marketing strategy by increasing that number and bringing their fulfilment centers closer to their customers. They are also trying to revolutionize the world of shipping by developing a "Global Supply Chain by Amazon," which will supplement delivery services in foreign countries who may not have as robust an infrastructure of shippers like FedEx and UPS in the United States. Amazon is no stranger to foreign outsourcing and importing, overcoming quality control and does not shy from their obligations to their customers, which is a common hurdle for international companies. From experience, Amazon takes their customer feedback and concerns very seriously and will resolve customer issues when a product is sold through their own services. They also offer a full suite of solutions to encourage new sellers to use their services, with training tutorials, webinars, as well as guides to understanding target customers, language support, and even currency exchanges. Note: Amazon fulfilment center refers to its warehouses where the entire process is fulfilled from start to finish - inventory comes in from manufacturers and is shipped out directly to customers.
a) According to Porter's Competitive Forces Model, there are four types of strategies that could be adopted by an organization when it faces with competitive forces from its external environment. With reference to the above case study, identify and discuss all FOUR (4) digital transformation strategies that are possibly adopted by Amazon in dealing with the competitive forces.
b) Information and Communication Technology (ICT) plays a crucial role for many contemporary organizations. Elaborate any TWO (2) ICT enablers that can be addressed by such organizations that operate globally to yield better business performance.
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