Question

In: Operations Management

What potential issues have you notice when examination of Amazon company that may pose a problem...

What potential issues have you notice when examination of Amazon company that may pose a problem for the company? please respond in at least 250 words of more

Solutions

Expert Solution

These are the potential issues that may pose problems for Amazon -

1. Lack of leadership

The whole world knows how good leader Jeff Bezos is. The problem for Amazon would be to cope up with the situation once bezzos retires.

Like all other founders, Jeff Bezos cannot be the leader throughout. One day he will have to step down. In the present scenario we cannot see any potential leader in Amazon to replace him.

This is typically termed as Founder's syndrome. A lot of companies in the past have got a brilliant start but lost the track once the founder retires.

2. Low quality cheap brands

It has become a common phenomenon that whenever you search for a particular product category, the first search results are not the best products. Rather they are products with mediocre quality.

The best brands often get placed low. This surely is not a good sign. This can break customer loyalty.

3. Growth of Competitors

Brands like myntra and Flipkart are posing tough competition to Amazon. Some of the policies of these brands are much better than Amazon.

4. Specific Platforms for Specific Product Category

Mantra for apparels, Grofers for grocery, Medlife for medicines. This is how customers think nowadays.

Amazon being a platform selling everything does not have a mastery over a particular product category sometimes making it a second option for the customers.

5. Treatment of workers -

A group formed by the workforce of Amazon called ' FACE ' has regularly criticised Amazon over it's employee policies. They have been very clear about it on social media.

This is a serious issue as it can lead to some serious impact on the company's future.


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