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Operation Strategy of Amazon Through Lens of Four Perspective

Essay by   •  January 9, 2019  •  Research Paper  •  966 Words (4 Pages)  •  148 Views

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Operation Strategy of Amazon through Lens of Four Perspective

Introduction

Amazon has become the leading player in the e-commerce industry, Amazon is an example of the significance of technologically supported productivity for optimal efficiency of services. Amazon.com Inc.’s e-commerce success depends on the high efficiency achieved in its operations management, which directly determines productivity (Kargar, 2004). Continuous improvement can help enhance the capabilities of Amazon in maintaining adequate support for operations despite global expansion and the broadening of the product mix. Through effective operations management, Amazon keeps its lead in online retail and the e-commerce market (Kargar, 2004).

Analyzing Amazon through the lens of operation perspective model would help us understand the Amazon modus operandi of doing the business and factors they that deem important and essential. Amazon follows a mass customization business model which is due to its online business operations that’s assist customers to customize according to their requirement (Distinguin, 2011). Amazon offers range of products like books, electronics, music, apparels and many other products without keeping them on physical shelves, but on the other hand Amazon have manage huge warehouse to accommodate the huge inventories of the products they produce or have. Such product differentiation sets apart Amazon from its competition, freedom of customers to choose the according to their actual need with price competitiveness and from one website sets apart in ecommerce market (Dewan et al., 2003).

Top-Down Perspective

Analyzing Amazon’s through top-down perspective and looking into its mission statement is “We strive to offer our customers the lowest possible prices, the best available selection, and the utmost convenience.” Amazon corporate mission statement ensures to provide convenient e-commerce to services to its potential customers. Amazon focus is on price, selection and convenience for their customers. The key highlighting factor for Amazon is lowest prices, best selection and utmost convenience (Mudambi and Schuff, 2010),

Amazon’s corporate vision is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.” Amazon vision statement expresses it main aim in becoming leaders in the e-commerce avenue in the world. Amazon corporate mission statement highlights global reach, customer centric approach and widest selection of products (Lee and Scott, 2009).

The design of organizational output is covered in this strategic decision area of operations management. Amazon addresses this concern primarily through technology. For example, the company uses advanced information and communication technologies to ensure that its online retail services are efficient and convenient for target customers. Such technologies are also used to support maximum efficiency of Amazon’s e-commerce operations. Management also takes key decision in the area of operation management is terms of strategically deciding location of warehouse and fulfilment centers for example Amazon must maintain warehouses strategically near the possible maximum number of customers would order from (Distinguin, 2011).

Bottom-Down Perspective

Amazon quality management aims are to satisfy its expectations of customers through the taking significant strategic decision properly to maximize quality and operation output. Amazon operation management is constantly developing their website design by learning from day to day issue they face. The company uses its organizational culture to upkeep innovative idea creation among employees. For example, Amazon encourages employees to be unflinching and pioneering in creating new ideas to solve problems and improve the business.

Operation Resource Perspective

An objective of operations management is to enhance production processes and capacity. In this strategic decision area, Amazon applies extensive automation to streamline its business processes. For example, allowing for online retail service as its main organizational productivity, the company automates the ordering process to escalate

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