Reference no: EM132210304
When Jeff Bezos started Amazon.com back in 1995, the online retailer focused just on selling books. Music and videos were soon added to the mix. Today, people can purchase a wide range of media and general- merchandise products from Amazon, which is now the world’s largest online retailer, with over $60 billion in annual sales. According to Bezos, Amazon’s success is based on three main factors - a relentless focus on delivering value to customers, operating efficiencies, and a willingness to innovate.
Amazon offers customers a much wider selection of merchandise than they can find in a physical store, and does so at a low price. Online shopping and purchasing is made easy with a user-friendly interface, product recommendations, customers wish lists, and a one-click purchasing option for repeat customers. To deliver products to customers quickly and accurately, Amazon has been investing heavily in a network of distribution centers. In the United States alone there are now over 40 such centers.
To make its distribution centers work more efficiently, Amazon is embracing automation. In 2012, Amazon purchased Kiva, a leading manufacturer of robots that service warehouses. On the innovation front, Amazon has been a leader in pushing the digitization of media. Its invention of the Kindle digital reader, and the ability of customers to use that reader either on a dedicated Kindle device or on a general-purpose device such as an iPad, turbo charged the digital distribution of books, a market segment where Amazon is the clear leader.
How did Amazon increase efficiency, quality and in turn responsiveness to customers?
1. What is the value that Amazon creates for its customers? How does the company create this value?
2. How important have innovation, efficiency, quality, and customer responsiveness been to Amazons’ competitive position?
3. Does Amazon have any distinctive competencies? If so, how do they impact the business?
4. Bring us up to date on where Amazon is today.
5. What are the ethical and social responsibility issues this case addresses?