Capstone
mikejr23
Assignment1Bus.docxAmazon Company is an organization that was started by Jeff Bezos in 1994 and operated in many industries. Some of the industries served by the organization include e-commerce, cloud computing, digital distribution, and many others. The organization started as an American company but has increased its operations to serve customers all over the world because of online shopping. Globalization and technology have played a great role in ensuring that the products and the services of the company reach all customers in the world regardless of their physical locations. Industrial organization, resource-based models and the stakeholders have shaped up the service delivery to the customers globally.
Globalization
Amazon has increased from strength to strength by increasing the number of services and products it offers to an increased number of customers in the world today. The effect of globalization on the organization has come courtesy of a large number of employees who ensure that the customers get their products within the stipulated period. The number of employees of the organization currently stands at 750,000, which show that the company is one of the largest single employers in the world. Through globalization, the international revenue of the company has increased from $15 billion in 2010 to $35 billion in 2014 an indication of the positive influence of globalization on the company.
The expansion of the organization has stiffened competition in various industries to the favor of the customers. Companies in various industries are forced to offer products at lower prices to compete for the giant firm which enjoys a competitive advantage in many sectors across the globe. Amazon Company has opened up many sectors in the world that has helped in boosting the growth of the world economy (DePillis & Sarlin, 2). The company has also offered employment opportunities to many people that have contributed to the reduction of unemployment rates and increasing the revenue of various nations where the organization is based.
Technology
Technology is the second factor that has revolutionized the operations of Amazon Company and the quality of services and products it offers to the customers. One of the greatest technologies that have been introduced in the organization is the use of robots. The robots were introduced in 2016, supported by over 50 IT professionals and engineers to make work easier and increase the movement of goods from one place to another within the stores (Curtis, 1). Robots reduce the movement of the employees from one shelf to another by moving the shelves to the employees. The second technology that has boosted the operations of Amazon is 1-Click. 1-Click is a technology that was developed to speed up the ordering process by the customers in a bid to serve time and data for the customers.
Cloud computing is the third technological idea that has been used by the organization to meet the needs of the customers and the organization. The company developed Amazon Cloud drive that helps customers to store their digital documents and access them through a web browser from any location around the globe. The Amazon Cloud drive is secure for all the clients and has a large capacity to store larger documents (Curtis, 1). The last technology that has helped in the growth of the company is e-commerce. Ecommerce has enabled customers to get goods from the company from all over the world without delays because of the digital link.
Industrial Organization Model
The industrial organization model constitutes factors that affect the operations of the organization in the market. Several external factors affect the operations of the organization. The external factors can be used by the organization to favor its operations. The factor global factor is product differentiation. The company operates in a competitive industry that requires clear product differentiation to help the customers recognize the products from the company. Easy identification of the Amazon product will increase the revenue generated by the company. The second factor that could be used to boost the revenue of the company is price discrimination. The company can research to establish the economic power of the customers. The economic power of the customers will help the company to charge higher prices to higher-income earners and lower prices to lower-income earners to increase the revenue generated by the company (Hitt, Ireland & Hoskisson, 3).
Resource-Based Model
Resource-Based Model is an analysis that examines the internal strength of a firm that can be used to increase the revenue and meet the needs of the customers. The resource may be physical or non-physical depending on the nature of the organizational operations. Amazon has an extensive delivery network that includes, an international, local and regional partnership that ensures that the products reach the customers within the stipulated time. The company partners with several service delivery such as DHL Express and TNT Express to deliver its products to the customers. The company has warehouses and distribution hubs which are strategically located globally to speed up the delivery of goods to customers. The company has a large number of experts that have helped in developing highly rated products to beat the stiff competition in the market (White, 4). The two factors, coupled with high market capitalization, can be used to attract more customers and increase the revenue of the organization.
Vision and mission
The vision of the organization is "to be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online." The vision of the organization has shape up the operations of the organization by ensuring that it a stock variety of products used by customers all over the world. The company has over 160 million products which ensure that the customers can get goods and services they need from the same company. The mission of the organization is "to strive to offer the customers the lowest possible prices, best available selection, and the utmost convenience." The mission of the organization has pushed the company to buy products from companies and individuals who offer lower prices to sell the products to customers at relatively lower prices. The organization stock a variety of products closer to the customers to meet the need of the customers under short notices.
Stakeholders
The stakeholders of the organization include customers, employees, the board of directors, investors and suppliers. The board of directors ensures that the organization complies with the rules of trade in various countries. Employees of the organization are responsible for the implementation of the ideas and execution of the daily duties in the company. Investors play a major role in funding the company as well as making leadership and management decisions in the organization. Customers are the most important stakeholders in the organization as far as the revenue of the organization is concerned. The customers buy the products from the firm, thus offering financial support to the company. The suppliers play the role of sustaining the operations of the firm through regular and timely supplies ((Hitt, Ireland & Hoskisson, 3). All the stakeholders contribute to the success of the firm by actively playing their distinguished roles in the company.
References
Curtis, S. (2013, October 15). Amazon at 15: the technology behind Amazon UK's success. Retrieved from https://www.telegraph.co.uk/technology/amazon/10377834/Amazon-at-15-the-technology-behind-Amazon-UKs-success.html
DePillis, L., & Sarlin, J. (2018, October 4). It's Amazon's world. We just live in it. Retrieved from https://edition.cnn.com/2018/10/03/tech/amazon-effect-us-economy/index.html
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic management: Concepts and Cases: Competitiveness and globalization (10th ed.). Mason, OH: South-Western Cengage Learning.
