Overview of Executive Brief
Amazon.com was founded on May 28, 1996 as a business dealing with different retailers who offered various consumer goods through the website. The company has changed the principles of trade, giving the popularity of sales through the Internet. Nowadays, the market capital of the company is estimated at about 28.9 billion dollars, and the number of employees has reached up to 20,700 employees (Amazon.com Inc., 2016).
The following executive brief will explain all aspects of Amazon and the necessity for improving the business information system within the e-commerce market that would:
Provide more apps for online retail shopping services;
Provide more services for customers and retail companies;
Produce more electronic Amazon devices;
Find new areas for growth;
Find strategies to maintain long term profitability.
Why does Improved Current Business Information System Matter to Amazon?
When Amazon Company started to work, the most important thing for the founder was to create a brand, and the second most important factor was the quality of services. Thus, the company was able to lower prices for each book by 20, 30, and 40%, which was a very interesting deal to its buyers. This substantial price reduction was made possible because the business model did not require the presence of a bookstore.
The company is public, with the main headquarters in Seattle, Washington, U.S. As the company working in the Internet industry, Amazon offers its main products such as Appstore, AWS, Game Studio, Kindle, Fire, Lab 126, Echo, and the Book Depository available in English, French, German, Italian, Chinese, Brazilian, Dutch, and Portuguese. Moreover, the company offers various shipping and delivery services, but the list of countries where it can deliver its products is limited. Amazon offers such delivery services as Prime, Free Same-Day delivery, and International shipping (Order with Prime, n.d.). Amazon has subsidiaries such as audible.com, Brilliance Audio, ComiXology, Goodreads, Shelfari, and Beijing Century Joyo Services.
Nowadays, Amazon has a whole network of customer services in the service centers. There are four main centers in such countries as the UK, Germany, France, and Japan. Amazon is the largest online platform not only in the United States but also in many other countries. The mission of the company is to make it easy for a business to work in any place of the world, which is also the main reason why online shopping has become convenient all over the world. The popularity of E-commerce platform grows quickly, becoming the number one choice for American consumers who look for the necessary and desirable things online.
An organization can achieve its goals in the long term, if it is clearly built an action plan and set objectives to achieve these goals. The process should consist of the following items:
a clearly defined goal;
giving answer to the questions: what we want to achieve and what we have already achieved;
identifying the most important challenges;
identifying short-term goals;
defining a strategy for each task. For Amazon, these tasks are as follows: shopping with fun for a customer, upgrading, reliable delivery;
having clear guidance aimed at solving tasks.
The concept of product value combines several factors: price, quality of goods, delivery speed, customer service, and new technologies. During the work with Amazon customers, it is necessary to take into account all the above five aspects. For example, the company extensively uses the system of discounts for the loyal and new customers as well as the quality of services provided through the system 1 Click and various customized services. Amazon Inc. guarantees the worldwide quick delivery of goods regardless of the place where a customer lives. The company stores open 24 hours a day, seven days a week regardless of the number of people willing to take advantage of Amazon site services. New technologies are introduced with Amazon based on the latest scientific research. The company informs its users via email or messages about the new technological developments it has implemented, which also helps to attract new customers.
The control and correction processes of errors in Amazon are also perfectly organized. The ordering process is simple and smooth. The patented procedure of purchase with a single click, which was implemented in September 2000 by Amazon, brings the company a clear advantage on a competitive market. Buyers can even change their mind about the order any time, up to the moment of delivery. They can add or remove items as well as combine and cancel orders. During their order shipment, they can track the delivery process.
The design of the web pages and the content adjustment under regular customers create an attractive front; the additional content in the form of reviews, interviews, excerpts, and related recommendations is useful for a deeper study of the site. The articles and reviews on the Amazom.com offer the visitors a wealth of information about the products and they even help the customers not to buy low-quality goods due to the negative reviews. Constantly experimenting with new options, Amazon offers online used books and music recordings that buyers can resell if they are no longer needed. The pages of product sold on Amazon have even a short list of the best products, compiled by the staff and customers.
Why does Improved Current Business Information System Matter to the World?
Amazon offers a wide range of products as well as simple access to other pages, a fast and easy to use search engine, and reliable delivery. Thus, all of these factors have led to the momentary success of the website among its users. Amazon makes profit for its own advertising services provided to other network companies. As compensation, the company receives a percentage of the sale if the purchase has been made on Amazon.com through a link on their website.
The modern world develops quickly and so does e-commerce, connecting people all over the world. The world market is huge and Amazon can offer great opportunities for people to buy the necessary products all around the world. The United States of America is one of the places where many online and offline stores are concentrated. It is an easy way to sell and buy products and services, if the service works properly and there is no problem with a fast delivery. If Amazon could make its deliveries even faster and to a greater number of places, it would bring an unprecedented online shopping experience to the world, and people do business everywhere.
Why does Improved Current Business Information System Matter to Amazon’s Partners?
Amazon`s main partners are the retailers. Amazon is the leading platform in the IT industry in the retail and wholesale trade, providing technology and service to enable retailers to do business for free. To serve the retailers better, Amazon needs to improve its current business information system such as credit system, payment channel, and logistics system.
What Needs to Change and What Needs to Happen to Make That Change?
To improve the current business information system, Amazon needs to have one technical team to support the software development. Most employees are dissatisfied with the Internet mega-retailer, criticizing their performance and calling out their leaders publicly (Skrzypinski, 2015). Moreover, Amazon has encountered different problems related to its employees. The employees want Amazon to make three important changes. First, they demand to abolish the feedback tool that enables anonymous criticism of colleagues. Secondly, they want to abolish the levels system responsible for the employees classification with letter or number. Finally, they ask to abolish the rank force curve employee ranking system, which would definitely help to improve the culture and workplace conditions. An ideal company for workers has to take care for its employees, nurture them, and invest in their satisfaction and motivation (Kantor & Streitfeld, 2015).
Amazon has a great reputation in the online trade, but it has problems with employees` satisfaction. This, it has recently faced criticism over its worker treatment, recycling, and many other sustainability metrics (Gunther, 2016). Being a quiet company, Amazon did not make any of the executives available for the interviews, and it even declined to respond to the questions via email. Moreover, the company has never published its annual or sustainability report, carbon emissions to the GDP, or the results of factory audits. The Guardian wrote about Amazon as a brutal place to work, where workers were subjected to pressure (Gunther, 2016). However, this claim was strongly disputed by Amazon.
What am I Asking for?
To improve Amazon`s current business information system and bring enjoyable and simple online shopping experience to the customers around the world, my proposal is to improve the network security system, to provide more payment options, and offer faster delivery all around the world.
Call to Action/Next Steps
What are the Next Steps Involved for Amazon?
1. Provide faster international delivery.
2. Implement Amazon program for the free fast international delivery or the delivery with a voucher.
3. Work with all the banks to create a new and simple payment channel.
4. Train the after-sale audit team for the credit system.
Q: What is Amazon`s service area?
A: E-commerce market in the USA, Germany, the UK, and Japan.
Q: How does Amazon operate to access its customer?
A: Online C2C (customer-to-customer) and B2C (business-to-customer) platform,
Q: What databases does Amazon use to organize customer information and purchase?
A: The Company uses Amazon DynamoDB (What is Amazon DynamoDB, n.d.).
Q: Does Amazon serve markets outside of the USA?
A: Buyers outside of the USA can buy from Amazon. The company has a big team of professionals who works internationally to support overseas customers and to ensure the efficient and prompt delivery.
Q: Will Amazon`s shopping platform changes peoples shopping behavior all around the world?
A: Within the high growing speed of e-commerce and online shopping demand, Amazon has also to develop rapidly, always providing a system to satisfy both customers and retailers, including instant chat program associated payment system, transportation and checking received & feedback. The purpose of Amazon Inc., has not changed, and the main aim is to attract more customers to the website and sell various goods and services as much as possible. Thus, the main objective is to become the largest company of e-commerce sector, and become the largest electronic store where customers can buy everything. Therefore, Amazon induces customers to spend more, changing people`s shopping behavior with the help of marketing strategies.
Q: How do international customers purchase items on Amazon?
A: International customers can purchase items on Amazon through AmazonGlobal Export that qualifies for international shipping.
Q: What strengths and weaknesses does Amazon currently have?
A: Weaknesses are – no product differentiation, low profit margins, loss of focus, and employees` dissatisfaction. Strengths are new skills through acquisition, a strong IT system, extensive product line at low price, and a strong brand image.
Q: What should partners do to adapt the changes in BIS?
A: The partners have to find new areas of growth as well as provide and implement marketing strategies for the long-term profitability.
Q: How will partners benefit from the change of Amazon`s BIS?
A: Customers outside of the USA can purchase products and services faster and more conveniently for them, which will lead to the profit increase and better purchasing power.
Q: Why does improved current business information system matter to Amazon`s partners?
A: More and more people buy products and services online; however, the deals are not always safe, which is the main reason for the customers not to buy goods online very often. Moreover, personal information of the customers can be in jeopardy. The payment system must be usually checked, upgraded, and moderated correspondingly. If a company provides shipping to the greater number of countries, customers will have more opportunities for shopping.
Q: How the changes in BIS would influence the e-commerce environment?
A: Retailers will pay more attention to the trade and deals in order to provide the most convenient way of delivery and payment method.
Q: With the fast-growing global market, how can Amazon improve BIS?
A: Despite the fact that Amazon should start thinking about the new areas of operation, the company has to improve the global supply chain and to open new international markets so that they could develop the logistics system, communication system, customer support, and after sale follow-up.
The Ask/ Call to Action:
Q: How long would it take to make these changes in Amazon currently BIS?
A: It is supposed to take a year to implement the new payment options for the overseas markets and to provide more delivery opportunities for the international market.
Q: How would these changes increase Amazon`s profit?
A: When Amazon introduces new payment options for the international customers, they will definitely increase profit. More to say, more retailers can make the business transactions easier. The customers purchasing power will grow correspondingly.