Case 3: Amazon.com’s Business Model and Its Evolution, by Syeda Maseeha Qumer and Debapratim Purkayastha (page C-10)
In addition to reading the case study provided in the textbook, research the company further to find any relevant events that have transpired since the writing of the case study. Use the company’s website, Internet search engines such as Google, online data services, or other sources to locate the latest articles about the company including press releases and current financial information. Feel free to bring in any recent news or current events concerning this company into your answer. Be sure to cite all sources according to APA guidelines.
For assistance with analyzing any financial data in this case, I attached Table 4-1 (Key Financial Ratios: How to Calculate Them and What They Mean) from textbook as a useful reference.
Please limit your analysis to 4 pages (1000 to 1100 words), double-spaced.
Case Questions
1. Amazon’s business operations depend heavily upon the use and application of technology. Review the following quote *(from Jeff Bezos) found in the case study, and comment on the wide variety of technologies employed in Amazon’s operations. Focus on how these technologies act as strengths and contribute to competitive success.
We use high-performance transactions systems, complex rendering and object caching, workflow and queuing systems, business intelligence and data analytics, machine learning and pattern recognition, neural networks and probabilistic decision making, and a wide variety of other techniques [. . .]. Many of the problems we face have no textbook solutions, and so we—happily—invent new approaches. [. . .] Technology infuses all of our teams, all of our processes, our decision-making, and our approach to innovation in each of our businesses. It is deeply integrated into everything we do. Invention is in our DNA and technology is the fundamental tool we wield to evolve and improve every aspect of the experience we provide our customers.”
2. Discuss the significance of the leadership of Jeff Bezos to Amazon’s business strategies. Be both specific and thorough in your response.
3. Conduct a SWOT analysis of Amazon. What outcomes of the analysis stand out, and how do the identified outcomes influence the business success of Amazon? Be specific, and provide an example to support your conclusion.
4. Conduct a value chain analysis using the example within “The Concept of a Company Value Chain” in your text as a guide. What conclusions can you draw from your analysis?
5. Patrick O’Brien, a lead analyst at Verdict Retail is quoted in the case study saying: “They’ve [Amazon] managed to get top of mind on every category without doing anything creative – Amazon’s 20 years isn’t a marketing story, it’s all about availability and scale.” Do you agree or disagree with O’Brien’s assessment? Explain your response and provide at least one example that supports your perspective.
