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Amazon - Coggle Diagram

- - - - long-term investment
        
        to build software and applications, data storage capacity and skills
        
        standardised internally to create a highly profitable and effective cloud-based business model
  - - - to enhance predictive capabilities
        
        to optimise logistics networks
- - - - full-time
      - part-time
      - three segments
        
        North America
        
        International
        
        AWS
  - - - Organisational HR policies and practices around work environments, diversity and inclusion, people strategies, well-being and talent acquisition.
- - - - layoffs in 2023 of 27,000 off its peak-pandemic workforce
      - in 2024 pulling back from its ‘Just Walk Out’ shops
      - closure of the Leipzig/Hall Airport hub opened in 2021 in Leipzig, Germany, to support its European delivery network
- - - - ‘global cloud-based products including compute, storage, databases, analytics, networking, mobile, developer tools, management tools, IoT, security, and enterprise applications’.
        
        Include also hard storage devices for transporting and migrating data into the cloud, including their proprietary ‘Snowball’ device
    - - AI-related tools and services
      - products and services harnessing the Internet of Things (IoT)
  - - - not required to set up long-term contracts
        
        build customer loyalty
        
        free trial
        
        Short-term
    - - effective and efficient customer solutions
        
        run afoul of national market competition authorities
        
        challenges
        
        strong market dominance
        
        led to UK antitrust regulator, Ofcom, asked the UK’s Competition and Markets Authority to investigate the competitiveness of the cloud computing industry
        
        2021 judgment by the Italian Competition Authority against five of Amazon’s European retail and logistics subsidiaries for breaching competition regulations and levying a fine of €1.13bn
        
        antitrust lawsuit filed in the US by the Federal Trade Commission and several US states in September 2023
        
        2022 Italian antitrust decision against Amazon
        
        strong conflict of interest when Amazon operated as both as a first party merchant and as a mediator between seller and consumer, and that it gave itself preferential treatment, was able to undercut third party merchants using its site by taking advantage of its economies of scale, as well as reducing the potential for new market entrants to offer competitive logistics services.
        
        Laws and regulations related to data privacy
        
        Luxembourg’s National Commission for Data Protection’s fine of €746mn for practices that contravened the EU’s GDPR legislation
        
        sluggish expansion of the infrastructure network in the Global South
        
        Laws nations in Africa with strict data residency laws that prohibit data sharing across national boundaries
        
        1 more item...
- - - - AWS
        
        market-leading cloud computing business
        
        to competitors
        
        Netflix
        
        Pharmaceutical
        
        healthcare
        
        32 per cent market share
        
        challenges
        
        infrastructure investment
        
        growing number of competitors
        
        lost a point of market share to each Microsoft and Google in the fourth quarter of 2023 (Richter, 2024).
      - Amazon.com
        
        and another 20 country-specific ‘Marketplace’ websites
        
        61 per cent of total revenue
      - Amazon Prime
      - Alexa
      - Echo
- - - - Combined with warehouses that co-locate picking, packing and delivery pick-up in hubs nearby urban centres, Amazon has halved its average delivery time in the US since 2018 and offers same day delivery services in selected areas #
    - - Collecting and analysing data from millions of users
        
        provided the ability to accurately predict the most common products that customers will purchase and then store these products in fulfilment centres strategically located across its different retail market regions.
        
        forecasts, in part based on customer purchasing data
        
        Predict highest volume, small-sized purchases
        
        store them in local fulfilment warehouses
        
        Determines volume of remaining purchased goods and store them within a geographical region
        
        Classifies which goods could be housed ‘out-of-region’
      - e-commerce model
        
        changed the way that many consumers interact with retail businesses
        
        benefits
        
        customers
        
        products are delivered to customers
        
        reduces overall costs of doing business
        
        Retailers can reduce their footprints in high value locations
        
        retailers
        
        Amazon = ‘first party retailer’
        
        offers logistics services to third party sellers
        
        2 more items...
      - small-sized goods = uniformly sized packages
        
        Automation small-goods warehousing activities, including picking and packaging
        
        Robotic technology
        
        partially bought company to make robots
      - logistics
        
        Surpassed FedEx in 2020 with a 22 per cent US market share and holding as the third top US logistics provider in volume in 2020 after the US Postal Service and UPS
        
        Amazon Hub Delivery programme in 2023 to contract with small businesses to make the last mile deliveries across locations in 23 US states
        
        Delivery approaches heavily dependent by country, where in some cases, deliveries are made exclusively by third party operators