Fruin - Midterm 1 Amazon bus 189

Fruin - Midterm 1 Amazon bus 189 - Business 189 October 6,...

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Business 189 October 6, 2009 1. I believe that the strategy that has led to most of Amazon’s success would definitely be their functional level strategies. Amazon’s leader Jeffrey Bezos has had to maintain a good IT department. properly manage an inventory control department One of the most critical departments to Amazon is their IT functionality. Without the proper IT controls, customers would not be able to purchase items and orders would become mixed up. In order to keep this system functioning properly, Bezos made sure to hire proper staff that would be able to make his web site how he wanted and be able to maintain said web site. The IT department coded some of Amazon’s more unique features such as the 1 Click shopping method, a method which allows customers to bypass the traditional “shopping cart” function and buy an item instantly. It is this function level strategy of technology that has made Amazon what it is today, however, it is not just technology that Amazon needed in order to be so successful. Another feat the Amazon.com CEO performed was the ability to drive down inventory costs. One of the caveats of a “pure-play” (internet retail only) style is that it costs a large amount of money to maintain inventory and to ship said inventory to customers. This was actually the reason why most of Amazon.com. Bezos mastered an inventory system that would successfully drive down costs. It consists of 10 different steps, but to summarize it, the process involves directing orders to the nearest distribution center (of the customer), where it is then assigned to work groups, the work groups place the order on a conveyor belt, and the order is checked at least 15 times to ensure accuracy, the orders are then shipped to a central point and then leave the warehouse in order to be delivered to the customer. (Unlv.edu) By creating such
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an efficient system, Amazon was able to overcome the #1 hurdle that virtually all internet retailers face, a huge inventory and all the costs that go with it. This function-level strategy is one of Amazon’s strongest assets and one of the main reasons why it has survived. While business level strategies do provide a layout for Amazon, it is not the most crucial factor for Amazon, so long as Amazon maintains their current function level strategies and continues to improve them, they will continue to successful and outpace their competition. 2. I believe that a resource-based model is the most accurate way to look at toyota’s success. I will prove that one of the main factors to toyota’s success is not from external influences but from the internal workings of the company. The factors that affected toyota’s success are best
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explained by the resource-based model’s use of resource endowments, company capabilities, and corporate competencies. One of the factors that is mentioned by the resource based model is a company’s resource
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Fruin - Midterm 1 Amazon bus 189 - Business 189 October 6,...

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