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SMMC__G5_TP2]_Amazon - Coggle Diagram
SMMC__G5_TP2]_Amazon
Sources of Competitive Advantage
Resources
Intangible
Technologies
Amazon (Virtual) Dash Button
Amazon Prime Air
Amazon Fire TV
AmazonFresh
Amazon Fire Phone
Excels in Relationship Marketing
Data-driven Relationship Marketing
Convenience at the Heart of the Experience
Making e-commerce a Share-worthy Experience
The human resource functions of the company have held the employees in maintaining good attitude and moral standards within the company
Tangible
Net sales for Amazon last 2 year were $232.9 billion, up almost 31% YOY.
Activities
Primary activities
Logistics
Operations
Vast, widely dispersed, wildly complex maze of workflows
Marketing and Sales
Service
Leadership
Be passionate about customer service
Integrate technologies
Cameras and facial recognition, mobile beacons, and digital displays
Set up systems
Maximize personalization for each customer
Cross-selling opportunities for each customer
Leverage customer insights collected in-store
Being picked and packed for in-store vs. online
Inventory monitoring and the ability to re-order in real-time.
Packages are being received, stored, and inventoried.
Competitive Advantage
Differentiation advantage
Special activities
Amazon has been doing activities to keep its unique company values to customers.
Customers 30 day return policy
To help consumers overcome the fear and to use its service in the consumer’s minds
Low Prices
Low margins attracted more customers
Easy to Return
Company used best web design practices and made it easy for consumers
Cost Leadership
Creative Ideas and Innovative
They launched Amazon Home Services, a simple way to buy and schedule local professional services
Strategic Partnerships with many Companies
Forming a strong value chain system helps in maintaining a low-cost structure.
Has massive warehousing facilities and processing capability
Efficiently controls its costs and lowers its inventory replenishment time.
Heart of Amazon's competitive advantage
Range, price and convenience
The business strategy is make the cost leadership taken to the extreme.
Successful Diversification Combination
Economies of scale, innovation in business processes and ongoing business
Sustained Competitive Advantage
Positioning
Targeting a niche
Becoming a leader in an existing product/service category
Finding a niche market
Jeff Bezos thinking of building a true ‘everything store’ online. he had to focus on a niche.He made a list of twenty possible categories and he finally choose books
The difference
value to customers is a combination of extraordinary convenience and low price
Unique set of activities
Amazon has been performing hundreds of activities to ensure its unique value propositions to customers.
Reinforcing activities
Amazon has designed its activities in such a way that not only do they complement each other but also reinforce one another and thus helping the brand to build a competitive advantage
Four Potential Challenges
Imitation & Replication
Amazon Logistics
They buy trucks and rent aircraft ,helicopter
Unmanned flying vehicles
Amazon Web Service
Cost down&Become rising star
Amazon Key
Amazon Lockers
Help people who are not at home
Durability
Maintain the spirit of the first day of entrepreneurship and always be a new venture
Relevance
Eager to be the core value of the best company in the minds of customers and never change
Strategic Renewal
Capabilities
Operational capabilities
Optimize Productivity
Layout Design and Strategy
Job Design and Human Resources
Location Strategy
Supply Chain Management
Process and Capacity Design
Inventory Management
Quality Management
Scheduling
Design of Goods and Services
Maintenance
Dynamic capabilities
Acquisitions
has bought nearly 100 businesses
3-P framework
Positions
Adopt the 5G technology
Paths
Has an inherent mechanism to track customer and consumers’ habits
It makes it hard for competitors to copy
Combine online sales with physical stores
Processes
Recruiting innovative people
To conduct small experiments