Upon careful analysis of Amazon’s approach to the consumer market, the CEO has a welcoming concept in believing the company is still in the sleep phase of their rollout of their plans to attack the market, while other retailers will find themselves needing to catch up. As a result, Amazon will look to be on the top of its game when it comes to innovation. According to Finch, “every level of operations and all processes should be designed to ensure that uncompromising quality is the norm at every stage from product inception through the final sale. By definition, every job within the firm provides added value to the processes and products of the organization” (Chapter 2.2, 2012). This leadership approach to the growth needed to have the business
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The second class of factors that directly impact customer satisfaction can be deduced easily from the two conceptual equations introduced previously. Price is a fundamental element of buyers’ assessment of value and central to the determination of their satisfaction with the products they purchase (Finch, 2012). Also, building their infrastructure and branching out to be the best and faster provider for all consumer needs is largely the focus in Amazon. According to Finch, “A value chain defines as a succession of activities and processes, usually for specific SBUs, that converts the input into outputs of greater value” (Chapter 2.5, 2012). Amazon is looking to grow their Prime business, while also applying those same techniques with Amazon Fresh, having all SBU’s working in tandem to be the most efficient & effective. Most importantly, Amazon will need to continue to develop in the area of growing their distribution centers in cities that are closer to their target market. According to Mellahi et al., “speed has allowed Amazon to disrupt the status quo, erode the current advantage imitated by competitors, and create new advantages before competitors can pre-empt these moves” (2000). Amazon’s plan is substantial not only from a cost-cutting perspective by shipping products only on delivery trucks; it will also get the end product to the consumer in one day. To further build out their distribution capabilities, Amazon deciding to negotiate contracts with additional cities to expand operations will further set up the company’s framework to support the initiative. If Amazon stays the course with focusing on innovation, developing technology, and building out their distribution centers, they will be able to get the business to a place where one-day delivery will be
The second class of factors that directly impact customer satisfaction can be deduced easily from the two conceptual equations introduced previously. Price is a fundamental element of buyers’ assessment of value and central to the determination of their satisfaction with the products they purchase (Finch, 2012). Also, building their infrastructure and branching out to be the best and faster provider for all consumer needs is largely the focus in Amazon. According to Finch, “A value chain defines as a succession of activities and processes, usually for specific SBUs, that converts the input into outputs of greater value” (Chapter 2.5, 2012). Amazon is looking to grow their Prime business, while also applying those same techniques with Amazon Fresh, having all SBU’s working in tandem to be the most efficient & effective. Most importantly, Amazon will need to continue to develop in the area of growing their distribution centers in cities that are closer to their target market. According to Mellahi et al., “speed has allowed Amazon to disrupt the status quo, erode the current advantage imitated by competitors, and create new advantages before competitors can pre-empt these moves” (2000). Amazon’s plan is substantial not only from a cost-cutting perspective by shipping products only on delivery trucks; it will also get the end product to the consumer in one day. To further build out their distribution capabilities, Amazon deciding to negotiate contracts with additional cities to expand operations will further set up the company’s framework to support the initiative. If Amazon stays the course with focusing on innovation, developing technology, and building out their distribution centers, they will be able to get the business to a place where one-day delivery will be