CLOSING CASE When Jeff Bezos founded Amazon.com in 1995, the online retailer focused just on selling books. Musie and videos were soon added to the mix. Today, you ‘can purchase a wide range of media and general- merchandise products from Amazon, which is now the world’s largest online retailer, with over S85 bi lion in annual sales, According to Bezos, Amazon's success is based on three core factors: relentless fe to customers oper focus on delivering ¥ ies and a willing cellici ess to innovate Amazon offers customers & much wider selec tion of merchandise than they can find ina physical store, and does so at a low pre. Online shoppin and pure sy with a user-friendly in terface, product recommendations, customer wish Iists, and a one-click purchasing option for repeat fic that Amazon has been ne retail third-party ceustomers. The per falling for several yes becoming mote depscareh engines This inate that Amazon is ine ‘seasingly becoming th staring poit for online Pulchases AS a vesulits active estore base & em appwoaching 250 lion “Te dciner products to customers quickly and soourately, Amazon bas Bsn imesting hen in a ‘etwork of dition entre Inte United Stes ‘hove there are on such centers Sapte ‘xed sotware analyzes customer purchosing Pe ternsond informs the company wha fo ord wher> toto iin te detrbuton ntwork, what to charge Feri and when to markt down toa The goal istoreduceimentory-hotingcess whic aboyshav- Ing product instock. Tv incsaingly dene noon ‘of etrbtion centers xabas Amazon o rue the Une taks te deter products to comune and to Sitdown on dlvery cos Ax Amazon gneiss Support a dans diribaion nctwork. Which tum snabls ito ul usta ordre more rpicly and talower cost, thoy sling compete a ‘anage ener aller le "To make is diinbution centers eten more ‘ficient, Amuzon is embracing automation. Unt racenly, most picking and packing of products at ‘Amazon detsittion eonlers am slone by hand, ‘sth employees walking as rich as 3 ike per ‘Bil topk mershandis of elves and bing to packing stations. Athough walking 20 miles day "ay be good forthe placa! beth of employes, itrepmecents mich wai ime and hart proce ‘vig. Im 2012, Amazon purchased Kia, a leading rmantactrer of robots that sevice warehouse, Post the acqulsdon, Kia announced that for the eat 28 years it would take no eternal onders CASE DISCUSSION QUESTIONS 1. Wat ita ais os Anan 2, What feronallorl etogies hos Amazon purted boost cuter erpondveren? 3, What does prac quallymean or [maseud Whe! kectenelleed cigs Ses Agoron ped fo boot fond Jrstead focus on automating Amaro's die tubutioncontrs Kiva robots pick products fom she and datver thm wo pathing stations This edo thea nee po dtrbtion seer by Dito and boosts productivity accordingly ‘On the innovation front, Amazon hae Bon @ leader in pushing the digtubaion of mela. si. tention of the Kind dtl rete and the ai bf cuslomcr fous tht rnc etherom a dsisted Rial deve 0 on a gencal-purposedcviee soeh 25 an iPad, trboshargad the dial dsebution of ooke-—tiatket segment whee Amarone the cat leader. Ditalization of books is disrupting the c= tablished Book oan industy amd arengtening ‘Amazon’ adventgs inthis segment, To tre dtl ‘medi, flr books to Ms and muss ard to ene ‘ap cntomer downlad, Amazon hex bul huge Serer farms iseary investment in“eoul- based” ffetroture has tuned Arsazon nt a leader in hie {al snow lneragng sexpert and infasra tare to build another binness Amizon We Servis (AWS), which will oa chats data, an assoted Seftvare for other companiss Ip 20, his new bs ‘as gnaried over $2 iio in evens, making ‘Amasomencof thea laderviheenerging eld (of elo computing Je Bezas en ecard as s3ting ‘hath Bllvee AWS wil limtaly match Amazone online ota busines in sale volume, Sure na Addy Derbi Sy Chen aan nays hs Cae Stag tse centri ts knw Nerds Drs Lr Vea Aaa 2012 AF The ining Ca Rog et The Wd Satine Deo OTA 4. How hes innovation helped Amazon prone ite scien, ashore tesponsivenesy ae gos aeiae 5. Bo you think hat Amazon has any rere and ‘valuable resources? ln what value erection (inten ore ese escucrs lacie 6, How sntanoble i Aaron's compete Sie niworlnewalbaieet