Amazon Business Case Study: Amul Vaibhav V

Introduction
In this assignment, you will analyze a real-world business case study and provide insightful solutions
based on your analysis. Choose a case study from the provided list or seek approval for an alternative
case study. This assignment aims to develop critical thinking, problem-solving, and presentation skills
in a business context.

Follow these steps to work on this assignment:

1. Select “File” > “Make a Copy” and create a copy of this document.
2. Replace “<NAME>” in the title with your name.
3. Make sure to select “Share it with the same people” while creating the copy
4. Read the questions below and write your answers
5. Submit this link to the document on the assignment page. (please make sure “Anyone
with the link can comment/edit” is selected)

Problem Statement:
In the Amazon website selling category suddenly starts falling out. What would be the Data
Matrix/Key matrix for this cause and developing a strategy to reverse the trend?
Problem Identification and Analysis
● Identify and define the main problems faced by the company in the case study.
● Conduct a comprehensive analysis using relevant theories, concepts, and frameworks.

Proposed Solutions and Recommendations

● Develop feasible & effective solutions to address the identified problems, providing a logical
rationale for each solution.
● Provide clear & justified recommendations based on the analysis & proposed solutions .

Implementation Plan
● Create a detailed implementation plan for executing the proposed solutions, considering
potential challenges, risks, and resource requirements.

Report Preparation and Presentation

1. Prepare a well-structured report summarizing your analysis, solutions, and recommendations.
2. Use proper grammar, spelling, and punctuation, and include appropriate citations and
references to support your arguments and ideas.

1. Problem Identification and Analysis:

The main problem faced by the amazon e-commerce store is a decline in sales.to identify the potential
causes and develop a strategy to reverse the trend, we need to conduct a comprehensive analysis using
relevant theories, concept, and frameworks. Here are the steps to follow:
 Step 1: Sales Data Analysis – Start by collecting and analyzing historical sales data for
Amazon. This should include product categories, geographical regions, and specific time
periods.
 Step 2: Competition Analysis - Intense competition from e-commerce giants like Walmart
and emerging platforms like Shopify poses a significant challenge. Analyze their strategies,
market share, and pricing to understand the competitive landscape.
 Step 3 : Customer Analysis- Rapid shifts in consumer preferences and buying behaviors can
impact product demand. Analyze these trends to adjust product offerings and marketing
strategies accordingly.
 Step 4: Regulatory and Legal Challenges- Amazon has faced increasing regulatory scrutiny
regarding potential antitrust violations. Explore the implications of these challenges on the
business and plan for potential regulatory changes.
 Step 5: Supply Chain and Logistics - Amazon's vast network of fulfilment centers and
distribution hubs can become complex to manage. Streamline supply chain operations to
address stockouts, improve delivery times, and enhance the overall shopping experience for
customers. Amazon faces pressure to reduce its environmental footprint, which includes the
sustainability of its supply chain and logistics.
 Step 6: Technology and innovation- The technology landscape in e-commerce is continually
evolving. Stay ahead by investing in cutting-edge technologies like AI, machine learning, and
automation to enhance personalization and efficiency in sales.
Growing concerns around data privacy and cybersecurity can impact customer trust. Ensure
robust data protection measures to safeguard customer information.

Key Metrics for Analysis

Metrics Definition

Sales Revenue Total revenue generated from the sales

Sales Growth Percentage Change in sales revenue over time

Profit Margins Monitoring profit margin is crucial to assess

the profitability of sales

Average order value(AOV) The average amount customers spends on each

order

Conversion Rate The percentage of website vistors who makes a

purchase

Customer Acquisition Cost (CAC) Cost of acquiring a new customer

 Inventory Turnover Measures how quickly Amazon’s inventory is
sold

Customer Lifetime Value(CLV) Predicted net profit from a customer over time

Basket Analysis Combination Product purchased together can

inform marketing

Seasonal trends Identifying seasonal fluctuation and sales

pattern

Customer Churn Rate Percentage of customers who stop purchasing

Customer Review and Rating Rating of customer satisfaction with review

will help

Cart Abandonment Rate Customers adds items to their cart & not
purchase

Competitor Benchmarking Comparing sales metrics with competitors

2.Proposed Solution and Recommendations:

Based on the analysis conducted , the following solution and recommendation can be proposed:

Solution 1: Diversify Revenue Streams

- Amazon should start investing more in businesses like Amazon Web Services(AWS) and
advertising. This will reduce its dependence on the low margin ecommerce segment.
- Increased profitability ,improved investor confidence ,reduced vulnerability to e-commerce
price wars.
- There is a potential risks in intensified competition in high -margin segments, management
challenges .
Solution 2:Proactive Compliance and Transparency

- Amazon should proactively comply with existing regulations and enhance transparency in its
business operations. This will help build trust with regulators and reduce the risk of legal
challenges.
- Amazon dominance and concerns about anti-competitive practices. Compliance and
transparency can mitigate these concerns.
- Improved environmental credentials, customer trust, compliance with emerging regulation
Solution 3: Sustainablity initiatives
 - Amazon should invest sustainability initiatives ,including reducing carbon emissions,
optimizing logistics,and implementing renewable energy solutions.
- Sustainability initiatives address the root cause and promote responsible business practices.
- Initial investment costs , operational adjustments.
Solution 4: Strength Quality Control and Verification

- Amazon should enhance its quality control mechanisms for third-party sellers, employ
advanced verification technologies, and establish a more robust system to identify and remove
counterfeit products.
- Should enhance customer trust , reduced complaints , stronger brand image.
- Amazon should increase operational costs , potential disputes with sellers.
Solution 5: Monitor and Adapt to market trends

- Monitor customer feedback and reviews to identify areas for improvement.

- Conduct regular competitor analysis to identify opportunities or threats.

3.Implementation Plan:
To execute the proposed solution effectively , a detailed implementation plan should be created .Here
are the key steps:
 Step 1:Priortize Solutions – Evaluate the feasibility ,cost, and potential impact of each
solution. Priorities the solutions based on their relevance to the identified problems and
available resources.
 Step 2:Resource allocation - Determine the resources required for each solution, including
budget, personnel, technology, and any other necessary assets. Create a budget allocation plan
for implementing the solutions.
 Step 3:TimeLine and Milestones - Develop a timeline for the implementation of each
solution, specifying the start and end dates for key activities.Define milestones and
checkpoints to track progress throughout the implementation process.
 Step 4:Risk Assessment and Mitigation: Identify potential risks and challenges that may arise
during implementation.Develop strategies for mitigating these risks and addressing challenges
as they occur.
 Step 5:Communciation Plan: Establish a communication plan to keep stakeholders informed
about the progress of the implementation.Define the frequency and channels of
communication for updates.

 Step 6: Review and Adapt - Regularly review the implementation plan, analyze results, and
adapt strategies as needed. Maintain flexibility and responsiveness to changes in the market or
customer behavior.

Step 1: Prioritize Solutions

 SWOT analysis: Excel, Google Sheets
 Prioritization matrix: Trello, Asana, Excel
Step 2: Develop an Action Plan
 Project management tools: Trello, Asana, Microsoft Project
 Gantt charts: Excel, GanttProject, TeamGantt
Step 3: Allocate Resources
 Resource management tools: Resource Guru, Float, Microsoft Project
  Budgeting and financial planning: Excel, Google Sheets, QuickBooks
Step 4: Pilot Test Solutions
 A/B testing platforms: Optimizely, Google Optimize, VWO
 Customer feedback collection: SurveyMonkey, Typeform, Google Forms
Step 5: Monitor and Measure Progress
 Sales and revenue tracking: POS system, CRM software, Excel
 Customer feedback analysis: Excel, Google Sheets, sentiment analysis tools
Step 6: Review and Adapt
 Performance dashboards: Tableau, Power BI, Google Data Studio
 Competitor analysis: SEMrush, Similar Web, Google Trends.

4. Report Preparation and Presentation:

The final step is to prepare a well-structured report summarizing the analysis, solutions, and
recommendations. The report should include the following sections:

- Executive Summary: Provide a concise overview of the report's key findings and recommendations.

- Introduction: State the purpose of the report, the problem statement, and the methodology used for
analysis.

- Analysis: Present the findings of the analysis conducted, including sales data, customer analysis,
competitor analysis, economic and industry analysis, and internal analysis.

- Proposed Solutions: Describe each proposed solution in detail, providing a logical rationale and
supporting evidence for each solution.

- Recommendations: Summarize the recommended solutions, highlighting their expected impact and
feasibility. Justify the recommendations based on the analysis and proposed solutions.

- Implementation Plan: Present a detailed implementation plan, including steps, timelines,

responsible stakeholders, and resource requirements. Address potential challenges, risks, and
mitigation strategies.

- Conclusion: Summarize the report's key points and reiterate the importance of implementing the
proposed solutions.

- References: Include proper citations and references for any theories, concepts, frameworks, or
external sources used in the report.

- Appendices: Include any supporting data, charts, or additional information relevant to the analysis.

When presenting the report, focus on communicating the key insights, solutions, and
recommendations clearly and concisely. Will use visual aids, such as graphs or charts, to support my
arguments and make the presentation engaging.