Amazon's Operations Management

Overview of Amazon

Amazon.com Inc., more commonly referred to as Amazon, provides retail shopping services to customers across the globe through online channels. According to the CNN, since its inception in 1994, the Amazon's operations management has expanded across the major market segments – North America, International and Amazon Web Services. Currently, it has a market capitalisation of USD 1.6 trillion and employs over 1.3 million people across the globe. The American multinational organization operates in the internet retail industry. In an article published by Reuters, it was stated that the primary function of the organisation is the resale of the merchandise. Additionally, it manufactures and sells proprietary electronic devices including Kindle, Fire TV, and many others. Amazon also produces unique content and provides a multitude of services some of which include advertisement, storage, and data analytics. In this article, the Amazon's operations management of the organisation has been explored.

Amazon's Operations Management

The business of Amazon has evolved since its inception. The organisation, which started as an online bookstore, now delivers a multitude of commodities including fresh produce. Amazon is also engaged in the business of creating and distributing music, movies, and more unique content to deliver value to the customers. The Amazon's operations management are subdivided into the following major categories:

Amazon Store

At the Amazon Store, the organisation ensures to provide the lowest prices, a wide range of products and services, and convenient services. The online platform of the retail trade organisation hosts over 1.7 million small and medium businesses, who can sell their products to customer across the world. The organisation aids such sellers to succeed on the platform through the use of data analytics and other digital marketing tools. The independent small and medium businesses have contributed to the growth of the overall organization. Even though the organisation operates at a global scale following the standardisation strategy, it also caters to the local market demands. The global market is highly fragmented, implying that Amazon competes with local retailers in every country that they serve. Amazon also introduced a membership program, Amazon Prime, which provides customers with unlimited priority delivery and free shipping, even one-day delivery in some instances.

In the home country, that is, the USA, Prime Membership also includes benefits like access to Prime Video, Prime Gaming, Prime Reading, Prime Wardrobe, Amazon Music, Amazon Photos, early access to money-saving deals, free 2-hour delivery for groceries, and others. These services play a crucial role in strengthening the Amazon business model. As a part of Amazon's operations management, the company has ventured into the establishment of brick and mortar stores, including Amazon Go, Amazon Go Grocery, Amazon Fresh, Amazon 4-star, and Amazon Books. Amazon Go, Amazon Go Grocery, and Amazon Fresh provide the customers with convenient access to curated meals, fresh produce, easy-to-make or ready-to-eat meal options, and much more.

Moreover, with the Just Walk Out Shopping experience, customers are no longer required to wait in line to pay the bill and they can simply walk out. Besides, these stores consistently have low prices and even offers same-day delivery to the customer’s doorstep. Amazon 4-star offer the opportunity to the customers to purchase from a curated selection of bestsellers on the online platform, with a rating of 4 stars or above. Amazon Books offer a similar curated selection of bestselling books which also have the highest ratings.

Devices and Services

Amazon provides its customers with a unique blend of devices and services to meet the needs and desires of the customers. The needs and desires of the customers encourage the organisation to develop innovative products. Alexa is one of the most popular devices sold by Amazon. Alexa is integrated into products and services to allow the customers the convenience of controlling their devices through voice commands. Alexa is compatible with over 10,000 home devices. Other devices offered by Amazon include Echo, which provides access to Alexa from any location. This device can be used to control modern and smart homes.

The range of Echo devices includes Echo Dot, Echo Studio, Echo Flex, Echo Auto Echo Buds, Echo Frames, and Echo Loop. Based on its use case, Alexa can be used at home, from the car, as well as on the go. Fire Tablet provides access to movies, games, TV shows, ebooks, games, songs, and apps by using a tablet device. Amazon also has a Kids edition of this device, which is specifically curated for children. It is equipped with parental controls which encourages the child to learn. Fire TV similarly provides access to entertainment by enabling people to use the internet on their television. Both Fire Tablet and Fire TV are equipped with Alexa, implying that they can be controlled using voice commands. Kindle, equipped with a glare-free display with laser-quality text, provides readers with a unique reading experience. The Kindle store also has a wide selection of books, newspapers, and magazines. The device is also built to last more than a week after a single charge, thus eliminating the need to carry a charger. Similar to Fire Tablet, Kindle also has a Kids Edition specifically curated as per the needs of children. Other devices provide by Amazon include Ring, which is a video doorbell system that makes smart homes safer; Blink, which is a motion-activated wireless home security camera; Eero, which is a home Wi-Fi system; and Halo, which enables users to promote health and wellness.

Amazon Web Services

AWS offers over 175 fully-featured services and is one of the most broadly adopted cloud system. AWS includes a wide range of services like cloud computing, data analytics, storage, databases, networking, IoT, developer tools, management tools, security and enterprise applications. AWS is used and trusted by millions of users across the world. It provides support to small and medium-sized businesses across the globe to become agile, lower costs, and be innovative. AWS is a highly secured platform and has the same level of security as a military organisation, global banking systems, and other sensitive corporations.

Delivery and Logistics

Amazon is a customer-centric organisation, and hence customer satisfaction is the highest priority for the organisation. The delivery and logistics of Amazon have set standards for the industry with its innovative use of technology and it still unmatched by other Amazon competitors. Amazon Fulfilment Centres are equipped with state-of-the-art technologies which ensure that the product reaches the customers in the shortest possible time. It also includes customer service, which has received awards for satisfaction delivered. Amazon has also included a fleet of aircraft (Amazon Air), drones (Prime Air), electric delivery system (Amazon Scout), to safely deliver the products to the customers. The Last Mile Delivery of the organisation is supported by small businesses and drivers.

Entertainment

Amazon Originals, Amazon Music, Prime Video, Twitch, Audible, and Prime Gaming provide a source of digital entertainment to customers across the world. Prime Video is available in over 200 countries and offers thousands of movies and TV shows to its users. It also hosts original content created through Amazon Studio. Besides, Amazon Music features unlimited access to 60 million songs, Audible reinvented media with its unparalleled library of audiobooks, and Twitch has created a global multiplayer entertainment.

To sum up, the amazon's operations management is vast. It has evolved from an online bookstore to a global e-commerce business that also offers a multitude of services, while adhering to Amazon mission statement vision statement. Amazon is committed to providing customers with a wide range of products, services, and content at competitive prices. The five fragments of operations of Amazon work in collaboration to go over and beyond to satisfy the desires of its customers.

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