Amazon Cloud Computing Case Study Solution
Amazon Growth in different Eras
Amazon keep its pace steady during all the eras, they are more content on focusing slower but much sustainable growth. They were never in a hurry to catch the technology bus & reach in nick of time to the highest level of profitability. Rather they developed a strategy to establish their long footing deep inside the ground of technology, to optimize its full benefits.
Amazon during Dot com Boom Era
Amazon kept itself safe from the harsh blow of Dot Com era, According to the CEO of Amazon in an interview, we focus on the long term approach, we are not competing with companies who were more focused on ROI in just one, two or three years. Instead we were more happy in ROI in five, six, or in seven years.
It eventually took us six years to start earning profits but we remained committed. Where as many other companies were not able to survive when the dot com bubble burst in 2000.
Amazon during Dot com Burst
Amazon success was not just because of its steady approach strategy, but also it has a more customer focused approach. It also had a well prepared business plan that worked for it as well. It built its business model keeping in mind the changing customer preferences for products& innovation. Their primary focus was to build a customer centric business strategy, a place where they will be able to buy anything that they wish to purchase online.
Amazon mid 2000 until Now
Amazon focuses on competitive advantage strategy, its primary focus is on technology & innovation. It could rightly be said in the case of Amazon that it actually takes the advantage from economies of scale. Rationalize the combine efficiencies through synergies between its internal & external resources, it considers resources as cornerstone of its business strategy. It took advantage of Big Data Analysis to predict the customer behavior, use Data Mining tools to track the customer buying pattern.
Similarities across the Eras
The basic similarity among all the three eras, they all were technology driven eras, influenced by massive penetration of internet technology. Every business was trying to exploit the maximum advantage of the E-commerce &E-business. Similarly in this era most of the companies are divesting their physical locations & trying to adopt an e- business model, to avail the economies of scale, obtaining the benefits of globalization. Many banks are closing their physical branches and launching mobile applications to deal with their customers offering virtual services like online fund transfer. E- Monthly account statements etc.
Reason for success
Amazon manages to grow successfully in all the three eras mainly because it design its strategy to focus more on customers. It uses various tech tools to determine the needs of the customers. They wrapped all their efforts around their customers’. Identify their needs and provide them the best available option with least possible price.
Role of management in the growth of Amazon
Amazon business revolves around the third party logistic management system, they collaborate with largest US-based suppliers with global presence of logistics is integrated with their distribution management system. Amazon works directly with mailing companies like DHL uses their services to deliver goods to the end consumer. It integrates into their data base, provides them comprehensive software tools that integrate into their system, that generate bill, invoices & various reports.
Role of KindleÂ
Kindle is an online book reading application that allows its users to purchase books online through online book store. They need to purchase membership & once their account gets activated they can have access to numerous books, they can purchase books online and also have an option to download them to read them offline later. It also gives user option to read through few pages as a demo before they actually purchase it to get full access. This opened a new spectrum of growth opportunity for Amazon......................
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