GBA327 St Leo University Amazon of Innovation Case Study Questions

attached is screen shots of the chapter for to answer the questions,

Answer the questions to “Chapter 3 – Case Study 3:”The Amazon of Innovation” in Using MIS by Kroenke, 10th ed.

Q. 3.4

Amazon’s competitive strategy is Cost and its Industry-Wide. They do not only cover segments they cover the entire industry. They want to beat out Walmart’s and all the likes, and they can achieve this by having the best products at the best prices. They thrive off of repeat business and having great reviews and to be the best at both is what is going to get them these repeat shoppers and great reviews. They can have the lowest cost by negotiating pricing with vendors as well as the shipping companies.

Q. 3.5

I think what Jeff meant was that if you hire the best employees, pay them well and train them well then, they will be the best in the industry. They will be the best because they will work with few to no errors because they had proper training. So, if there are no errors then there is no need for a customer service department. In addition, they have set up such a user-friendly interface that even a beginner on the internet should be able to figure it out on their own.

Q 3.6

I feel that if an employee says that they do not know how to do something then Amazon would train them to do it. Unless that is they were already trained on the task and they should know how to do it already, then they may have to let them go.

Q 3.7

To thrive at Amazon, you would need to have strong verbal, written, and computer skills. You need to have the ability to adapt readily to an ever-changing market. That has been what has kept Amazon on top, their ability to be innovative and to make changes when changes are needed.What I have seen in many jobs is that people get complacent. They get used to the same tasks every day and once they are asked to change the way that they have been working it is very difficult for them to change. Even if it will make work easier and more efficient they are just used to the something and fight the change.

Q 3.8

In response, UPS and Fed-Ex should be figuring out how to be the most innovative leader in this industry in order to be Amazons go to for drone shipping. It is only a matter of time before Amazon figures out a work around through the red tape and is able to ship using drones.

Q 3.9

The advantage of brick and morter is that they do not have to pay Amazon a fee to handle, store, and ship their products. The disadvantage would be that they have to pay rent for the building as well as utilities. They also have to then pay their own employees to ship their products. They then have to pay their own shipping rates which would be higher then if Amazon shipped it from their own facilities. They would definitely want to sell products on the Amazon web site, it’s a small fee to reach a huge market they would otherwise miss.

Q 3.10

They would not need to develop a stocking, packing and shipping process. They would not need an order fulfilment process. It would save on employee wages because they would need less employees since Amazon would be handling a lot of the work processes. It would also save on rent/mortgage/storage costs, they would need less space since Amazon would house their goods. They would not have the cost of developing their own storage and shipping processes.

Q 3.11

They would not need their own inventory management system or information systems to fulfill orders. This will save on employee wages because Amazon will be managing the incoming orders on this system and shipping them. Also, they will not need to hire a computer tech to create the site or mange it or update it. If it crashes Amazon is responsible to fix it not them.

Q 3.12

They would integrate their information systems using Amazons MWS program. With this system they can use it to process batch orders to Amazon for storage and they can log in to track the shipments. They can also log into it and track the orders Amazon sent to their customers. This way they can keep their customers up to date on shipment tracking.

 

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