Republika ng Pilipinas

CITY OF GOVERNMENT OF SAN PABLO

DALUBHASAAN NG LUNSOD NG SAN PABLO
Brgy. San Jose, City of San Pablo

MIS-IT103: MANAGEMENT INFORMATION SYSTEMS FOR IT

Program/Yr./Sec: BSIT-3A Instructor: Engr. Solita M.

Costales
Group No. : 5
Date: February 27, 2019
Leader : 1. Santigo, Mary Grace C.
4. Alvaran, Fritzie Maritonie S.
Members : 2. Derequito, Mariell R.
5. Autida, NorineD.
3. Colarina, Teffany Ann A.

CASE # 4_

Amazon Case Study

INTRODUCTION

Amazon Incorporated is an American international e-commerce company. It is a

world’s largest online retailer. It is 11th most searched site around the world. It was

started by Jeffrey P. Bezos in the year 1994 based in Seattle, Washington. When many

.com companies were not able to survive during the 90’s, Amazon managed to survive

and is successful now. Amazon always welcomed addition of new products to its site.

Even though it has started its business selling book, presently it deals with 21 different

categories of product.

Jeff Bezos, a formerly wallstreet hedge fund executive, incorporated the

company as “Cadabra” in 1994 but changed the name to “Amazon” for the website

launch in 1995. Amazon.com was nearly called “Cadabra” but after his lawyer misheard

the word as “Cadaver” Bezos changed the name into “Amazon” because he liked that

the company would be name after the largest river in the world. He chooses the name

Amazon because it began with the first letter of the alphabet and because of its

association with the South American river. Amazon.com was not the first company to do

so, Computer Literacy, a Silicon Valley bookstore, began selling books from its

inventory to its technically astute customers in 1991. However, the promise of

Amazon.com was to deliver to any book to any reader anywhere.

Amazon started as an online bookstore, later diversifying to sell DVD’s, Blu-rays, CD’s,

Video, MP3, Audio book download/streaming, software, video games, electronics,

apparel, furniture, food, toys and jewelry. The company also produces Amazon e-

readers, Fire tablets, and Fire TV.

KINDLE E-BOOK READER-is an electronic reader that supports 6” multi touch

display that users can manipulate to input commands. Its weight 7.8 ounces come with

4GB of internal storage which can hold 3,000 e-books according to Amazon. It is

simple, easy to use and portable.

KINDLE FIRE TABLET-low priced tablet computer from Amazon. Bigger than a smart

phone but smaller than most other tablets-is designed to make the device easier to

manipulate.

FIRE TV- a streaming media receiver is a set-top box that connects to a TV to play

content from one or more video streaming services.

TOPIC

Meaning of their new logo. The smile that goes from A to Z tells that the company

is willing to deliver any product, anywhere in the world.

Amazon is a multinational technology company focusing in e-commerce, cloud

computing and artificial intelligence in Seattle, Washington. Similar to Ebay users can

also purchase and sell items using Amazon online marketplace system.

Amazon is an Internet-based enterprise that sells books, music, movies, house

wares, electronics, toys, and many other goods, either directly or as a middle man

between other retailers and Amazon.com million of customers.

Amazon started by focusing on business-to-consumer relationship between itself

and its customers and business –to-business relationships between itself and its

supplier then moved in facilitate customer-to-customer with the Amazon marketplace

which acts as an intermediary to facilitate transactions. The company lets anyone sell

nearby anything using its platform. That’s why Amazon serves as middle man between

other retailers and had a million of customers.

 Five amazing technologies developed by Amazon

1. Amazon Dash button launched in late March 2015

2. Amazon fresh service launched in 2007

3. Amazon Prime air

4. Amazon Fire TV

5. Amazon Fire Phone launched in June 2014

FINDINGS

Amazon is a multi-national technology company focusing in E-commerce, Cloud

computing and artificial intelligence in Seattle, Washington. It is said that it is the most

convenient store in the planet according to Forbes on July 22, 2018. It has a number of

product and services available including Amazon Fresh, Amazon Prime, Amazon Web

Services, Alexa, Appstore, Amazon Drive, Echo, Kindle, Fire Tablets, Fire TV, Video,

Kindle Store, Music, Music Unlimited, Amazon Digital Game Store, Amazon Studios and

AmazonWireless.

In terms of E-commerce, Amazon has over 240 million Customers worldwide and

they have a lot of potential buyers looking for good products. by using Amazon you can

save time, energy, fuel and they are 24/7 available if you don’t have time to go outside

and to shop things.

Despite the success of purchasing through online shopping stores, there are still

some disadvantages that most people complain about. Like you can’t personally check

the item you want to purchase, you can’t physically examine the products, You can’t try

on clothes, or see how heavy something feels, or see how a fabric feels. In online

shopping it is really hard to guess if it is fit to your size even if the measurements are

provided.

It also diminished instant satisfaction because unlike buying at retail stores, you

are able to use the product instantly after you buy it, which can be satisfying. However,

online shopping requires patience to wait for the item to arrive at your door step about 2

to 3 days or even longer depending on the location you've ordered it from.

 If by chance that you’ve receive a wrong or defective parcel. Yes, returns can be

done but, returning a product at Amazon is not that easy as ordering .It is not that easy

as going to a local store where you could talk to someone if necessary or simply

exchange the item for the size or color or replacement if it’s broken or otherwise not

working. In Amazon there’s a necessary process wherein you need to follow and wait

for the refund.

ANALYSIS

Amazon.com Inc. has the strongest brand in the online retail market This

strength is partly responsible for the rapid growth of the business in its early years.

Also, an extensive product mix makes it easy for customers to find what they need or

want on the company’s website. This strength supports service attractiveness, which is

crucial in maintaining the firm’s success.

In addition, having the highest revenues in the industry is one of Amazon’s strengths.

For example, it enables the company to invest in new business ventures or in new

product development. This aspect of the SWOT Analysis shows that Amazon.com Inc.

has the strengths necessary to maintain its e-commerce market position.

Amazon.com Inc. has a business model that others can easily imitate.

Amazon generates most of its revenues from developed countries, such as the United

States. When other firms become fully established in developing markets, it would be

difficult for Amazon to penetrate and compete in such markets.

The company’s limited brick-and-mortar presence also limits the ability to attract

customers to certain product types that are more sellable in physical stores than in

online stores. Based on this aspect of the SWOT Analysis, Amazon.com Inc. must

strategically maintain online and offline competitive advantage to overcome the negative

effects of its weaknesses.

Amazon has the opportunity to penetrate developing markets. This move should

establish the company’s presence before other large online retail firms take root,

thereby giving Amazon the advantage of a stronger competitive edge.

 The company also has the opportunity to open more brick-and-mortar stores to

improve competitiveness against large retailers with significant brick-and-mortar

presence, one of the issues facing Amazon.com Inc.’s e-commerce website is the

continuing sale of counterfeit items, which are generally against customer expectations

This condition presents an opportunity for the company to improve its

technological measures and organizational policies to address counterfeit sales. For

example, an automated process for consumer reports and product evaluation could help

reduce the amount of counterfeit products sold on the website. In this aspect of the

SWOT Analysis, Amazon has major opportunities for growth.

Cybercrime threatens practically every online retail company. Amazon must keep

stringent measures to counteract cybercrime attacks against its online operations

For example, the company must intensify its network security efforts. Also,

Amazon.com Inc. faces the issue of imitation, considering that its business model is

easily imitable. The materialization of this threat could reduce the company’s market

share. Moreover, aggressive competition is an issue against Amazon. Large retail firms,

such as Walmart, are continuing their efforts in improving their online retail presence.

Thus, based on this aspect of the SWOT Analysis, Amazon.com Inc. needs to

strengthen its marketing efforts and competitiveness.

SYNTHESIS

The sales strategy of amazon has been very unique that reflects its MIS the

operation of the company have made a transition from a single levels sales strategy to

multilevel of E-commerce strategy. The initial growth of the organization was favored by

business to consumer models of selling and business to business mode operation .the

recent development in the E-commerce population has enhanced the interaction

between the consumer and the business thus forcing amazon to give more priority and

customization to its IT. To value and respect reviews of the customers as part of their

business operation the exclusion of the retailers has been the sign of growth. Amazon

as it allows the customers to sell and buy the product using amazon as platform.
Comparison

The comparison between Flipkart and Amazon is flipkart today is where amazon

was when it started. The backbone and secret of success of flipkart is the quality of

service they offer, and most of the investment are going into improving and maintaining

the services quality and the other bulk is going awareness about the brand. Amazon on

the other hand has passed this stage of being single seller and transformed into a

market place with multiple seller. They also expanded its offerings with strong focus on

kindle, app store, music and cloud. While is not difficult to see that flipkart is trying to

ape amazon. Both started with books and expanded categories. Otherwise Amazon has

music store, and flipkart bought Flyte. While Amazon has a IMDB and flipkart made of

an acquisition of chakpak.com though currently there a difference in business operation

and strategic focus of both. Flipkart is aiming to become the next Amazon.

CONCLUSION

In conclusion, Amazon under the leadership of Jeff Bezos, passed the three test

of a winning strategy. First, its consumer-centric focus is providing the company with the

strategy to address the need to widen its market base. With consumer its mind, the

company made it cost-effective, simple, and convenient for consumers to purchase

products online through strategic alliances and technological innovations.

Second, the strategic is a fit to Amazon’s position in the online retail industry. The

company is beset with competition from a saturated retail market, where it rivals with

more established retail companies such as Wal-mart or Target. As the first mover in the

e-commerce industry, Amazon was able to get a head start and perfected online

purchasing to make it not only convenient but also reliable and secure.

And last, Amazon’s move towards diversification made it once again the “darling

of Wall Street” with gross merchandise sales expected to grow 25% in 2016, as per

financial services firm Motley Fool.

RECOMMENDATION

In Online Shopping it is very hard to guest if it is fit to you when you’re ordering

clothes and sometimes you’ll face the expectation versus reality on the items you’ve

order to prevent this kind of situation we recommend that an e-commerce company like

Amazon will need to put a detailed information for the products or item more information

much better.

Improved Shipping problems and delays. Even the biggest and best shipping

companies and online retailers like Amazon have their bad days, so there's no way to

ensure that you'll get your hands on your purchase in time unless you pick it up from a

store. Items get lost, detoured, damaged, or delivered to the wrong address that’s why

amazon really need to improved it

Make the returns easy, returning in Amazon is not that easy so that it will be a

great change for them if they will focus also on the returns and not just on the delivering

and producing new contents of products to offers. So that they can gain more

customers and build trust at the company.

REFERENCES

Mashable (July 22, 2017). Retrieved from

https://mashable.com/2011/07/22/facts-amazon-com/

Investopedia (June 22, 2015). Retrieved from

https://www.investopedia.com/articles/markets/062215/5-amazing-technologies-

developed-amazon-asp

How to Return Item Purchased at Amazon (May 11, 2017).

https://gadgets.ndtv.com/internet/features/how-to-return-amazon-online-shopping-

647436

Amazon: The Most Convenient Store on the Planet (July 22, 2018).

https://www.forbes.com/sites/shephyken/2018/07/22/amazon-the-most-convenient-

store-on-the-planet/#7672da121e98
 Advantages and Disadvantages of online shopping Review on Amazon

(November 6, 2016). Retrieved from https://www.mouthshut.com/review/Amazon-in-

review-npooossptom

Difference between Aamazon.com and Flipkart (August 21, 2016). Retrieved

from http://www.differencebetween.info/difference-betweamazonen-flipkart

Case Study of E-commerce on Amazon.com (February 4, 2017). Retrieved from

https://www.slideshare.net/mobile/KaushikaPanta/case-study-on-amazoncom-

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