Question

Using Amazon as the publicly owned company.

Describe what the firm does, its primary inputs, and its base of consumers (buyers); define the market the firm operates in;

Analyze the demand for the firm's product(s);

Evaluate the factors affecting the firm's production costs and supply decisions;

Answer 1

Amazon.com was a huge success in nineties.Amazon.com became a platform for the retailer and individuals in 2000.Amazon.com offers their services towards four types of customers, consumers, sellers, enterprises and content creators. (Annual report 2013) Amazon serves customer through the popular web site www.amazon.com. Now a day customers can access through mobile technology.Amazon.com apps are also available for the customers. In 1995 Amazon used website system and order fulfillment system separately in order to improve security. By 1995 amazon has huge database running on Digital Alpha Servers. Amazon renovated the entire system in the year of 2000. Company spent $200 million on the new system. These systems include analysis software from “Epiphany”, logistics from “manugistics” and new DBMS from oracle. (Gerald, 2012) For communication with supplies amazon seal deal with Excelon for business-to-business integration system. (Konicki, 2000) . Amazon Web Service (AWS) and Simple Storage Service (SS) are the main system developed by amazon. Through this system amazon can maintain its vast number of products and millions of active customers. Amazon web service has become a global platform for individual to retailers to sell their products. Through reliable, Scalable, and robust web service amazon creates a global domination. The challenges of amazon.com web services are very prominent. Every second thousands of customers are searching. For products and ordering products, the systems have to 4 be fast, reliable and secured. Every second CRM (Customer Relation Management) system is taking customer information though their searching, data mining, wish list and so on. Whatever customer buys or not they are providing information about them. Systems are smart enough to analysis the information and provide service accordingly.Transaction Processing System: Every customer has his profile in amazon.com or must have a profile in order to order any product. Amazon offer many features to personalize their profile with web tools like shopping cart, wish list. 1-click purchase: Amazon brings 1 click ordering, personalized shopping services and easy to use card transaction, e-mail communication with customers and direct shipping around the world. Customer with previously activated functionality can order items clicking only one button without fulfilling order form. Amazon„s secured server automatically provide the information required for the registered customer. Secure Credit/debit card payment: For secure transaction amazon.com use secured server software. Customer?s personal information, credit card number and everything is encrypted in order to secure information over internet.

Supply Chain Management (SCM): For the huge success by 2004 the “Supply Chain System” played a huge role. In 2000 amazon spent good amount in order to build automated warehouse and automated supply chain management. (Jenkinson 2005, business week 2003) All the supply chain activities are controlled by CRM system.

Enterprise Resource Management (ERP System): Amazon uses oracle as the ERP. It has huge database which hold information related to customer. Customer?s ordering process is automated as the order is taken as it automatically find the nearest distributing center for the delivery. (Bacheldor, 2004) This system fastens the order fulfillment process with the order tracking and reduces any distribution mistakes. By this system the company reduced 50% of its customer service contacts since 1999 because of fewer mistakes.