Introduction
Amazon is established in the year 1995 and it is ranked as one of the best retail sites on the internet. Amazon took several measures to increase its revenue. It added several new products to its sites. Amazon was popular among its customers for shipping the goods within the estimated time, leading to satisfied customers, improved market share and repeat business. By the end of 2000 Amazon had 22.3 million registered users on its site. By 2003 Amazon became the biggest book, music and video retailer on the internet and offered more than 4.7million books, video, music, computer games and products. Further, Amazon had the distinction of being the first e/commerce site to use collaborative filtering technology. Amazon’s immediate …show more content…
There is no inventory no ware house and no overhead. The company act as a middleman who is taking the orders and it will be filled by Ingram book group. When the time has passed the growth has forced Amazon to hold some inventory in order to respond customer needs by having several distributional centres. So the strategy has changed to push-pull. The inventory is hold using a push strategy while orders are shipped using a pull strategy. By having several distributional centres the holding cost for Amazon has increased as well.
Inventory Segmentation
The inventory network of Amazon is multi-tier inventory management. The will help the country plans and offers real time optimization service that allows Amazon to have minimal amount of inventory needs to achieve its service level. By having his network Amazon is able to offer nearly unlimited …show more content…
• Strong distributional channel.
• Negative cash cycle.
• Low prices.
2. Weaknesses
• Amazon is dependent on external delivery companies to carry out delivery function of the interface with the customer which can lead to uncontrollable service level problems.
• As Amazon adds new categories to its business, it risks damaging its brand.
• The company may at some point need to reconsider its strategy of offering free shopping to customers.
• No region based sites.
3. Opportunities
• Growth of internet users in the coming years predominantly in the international market.
• E-commerce expansion.
4. Threats
• Increase in transportation costs will directly impact delivery charges to customers as these costs are absorbed into the direct business but paid to a third party. It is assumed these will be directly passed onto the consumer which can have a negative impact to brand perception from the consumer view point.
• Competition will increase due to the low batteries to enter into the
Amazon is established in the year 1995 and it is ranked as one of the best retail sites on the internet. Amazon took several measures to increase its revenue. It added several new products to its sites. Amazon was popular among its customers for shipping the goods within the estimated time, leading to satisfied customers, improved market share and repeat business. By the end of 2000 Amazon had 22.3 million registered users on its site. By 2003 Amazon became the biggest book, music and video retailer on the internet and offered more than 4.7million books, video, music, computer games and products. Further, Amazon had the distinction of being the first e/commerce site to use collaborative filtering technology. Amazon’s immediate …show more content…
There is no inventory no ware house and no overhead. The company act as a middleman who is taking the orders and it will be filled by Ingram book group. When the time has passed the growth has forced Amazon to hold some inventory in order to respond customer needs by having several distributional centres. So the strategy has changed to push-pull. The inventory is hold using a push strategy while orders are shipped using a pull strategy. By having several distributional centres the holding cost for Amazon has increased as well.
Inventory Segmentation
The inventory network of Amazon is multi-tier inventory management. The will help the country plans and offers real time optimization service that allows Amazon to have minimal amount of inventory needs to achieve its service level. By having his network Amazon is able to offer nearly unlimited …show more content…
• Strong distributional channel.
• Negative cash cycle.
• Low prices.
2. Weaknesses
• Amazon is dependent on external delivery companies to carry out delivery function of the interface with the customer which can lead to uncontrollable service level problems.
• As Amazon adds new categories to its business, it risks damaging its brand.
• The company may at some point need to reconsider its strategy of offering free shopping to customers.
• No region based sites.
3. Opportunities
• Growth of internet users in the coming years predominantly in the international market.
• E-commerce expansion.
4. Threats
• Increase in transportation costs will directly impact delivery charges to customers as these costs are absorbed into the direct business but paid to a third party. It is assumed these will be directly passed onto the consumer which can have a negative impact to brand perception from the consumer view point.
• Competition will increase due to the low batteries to enter into the