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SMMC_G5__[TP3]_Amazon, G5 Group member, Question Mark :question:, Star …

- - - - Amazon Web Services
        
        Risks👎
        
        R&D costs are on the high side.
        
        Self-developing can eventually lead to failure.
        
        Benefits👍
        
        Process customer data quickly and systematically.
        
        Control customer data on its own and using this data improving consumer experience
    - - Outsourcing freight
        
        Benefits👍
        
        Can be delivered to places that Amazon cannot deliver.
        
        Saved logistics construction costs, management costs and supervision costs
        
        Risks👎
        
        Risk of delayed delivery during the handover process.
      - Amazon Mechanical Turk
        
        Risks👎
        
        Needs to bear the risks encountered
        
        Benefits👍
        
        Reduce the cost of third-party outsourcing intermediaries
    - - Moral hazard
        
        Problem
        
        Cannot get a good shopping experience
        
        Solution
        
        Give consumers shopping comfort is to promise to return and refund
    - - Warehouse workers
        
        Starvation wages
      - Administrative expenses
        
        Rose to 2.4 billion euros from 1.6 billion euros
      - Private label products
        
        Independent of the core ecommerce platform
        
        Subject to the same data access as 3rd parties
    - - Wholly-owned and operated logistics and supply chains
        
        Benefits👍
        
        Eliminated transportation costs
        
        Reduce some of the variability
        
        Risks👎
        
        The demand for manpower increases
        
        Need to reconfigure manpower
  - - - Supply networks
      - Retail outlets
      - Seeks to use Whole Foods’ brand
        
        Transform its operations
    - - Provide credit card
      - Shipping information
        
        Provide convenient services
  - - - Market Penetration
        
        Aims to generate more revenue from markets where the company currently operates
        
        Dependent on its consumers
      - Product Development
        
        Intensive growth strategy is to develop and offer new products to gain higher revenues
      - Market Development
        
        Entry and growth in new markets
      - Diversification
        
        Growth based on new business
        
        Example: Instance Audible
    - - Acquisition or investment
      - Rapid modularization of internal services and Fulfillment by Amazon (FBA)
- - - - Used Junglee to test the waters
        
        Amazon Entry Mode
        
        Collaborator or Acquisition
        
        Different country need different strategy to fit.
        
        Don't direct foreign investment
        
        Observe first
      - Accommodates its online rivals on Junglee because it adds to its value proposition
      - Gives it a vantage point to observe and make some money out of them.
  - - - Payment System
        
        Alipay continues to be the most popular online payment methods, and Amazon has not to date partnered with Alipay.
      - Market Entry by Acquisition
        
        The company’s typical path to success buying market share has been repeatedly blocked since it entered in 2004 with the acquisition of Joyo.
      - Price Sensitivity
        
        Amazon did not account for was how price sensitive the China market is