Category: Amazon

Recruitment is the method by which organizations pursue and acquire personnel for their various job positions. The duration of the process depends on the company and the workers requirements, and the work urgently needs to be filled. Conversely, branding for employers attracts and retains employees, making it a crucial aspect of the recruitment process as a whole. Through the hiring process, businesses investigate and improve their brand position. Furthermore, branding enhances the organizations responsibility to inspire its employees and the employers responsibility to impress job seekers and the community.

The recruitment procedure has considerable strategic significance; therefore, the organizations that claim superior staff recruitment and selection typically outperform their rivals. Recruitment can be viewed as gaining an unfair advantage within a companys industry. This report provides an explanation of employer branding and best practices, and it presents the external hiring strategies of Apple Inc., Netflix Inc., Google Inc., and Amazon Inc.,

An Exemplary Company and One that Needs Improvement

The employer brands of Apple Inc, Netflix, Google, and Amazon Inc companies are all approached in various ways. Each one of them takes into account a different Employer Value Proposition (EVP). EVP fundamentally entails giving prospective workers a reason to want to work for a firm, similar to how marketing connects with consumers (Yacine, 2021). Of the four businesses mentioned above, I would like to work for Apple Inc. As such, this can be attributed to various factors that pertain to the organization setting. Basically, the worlds finest employer brand belongs to this firm. The formulas used to detect the enthusiasm workers bring to their jobs and how that passion is translated into actions set the Apple employer brand apart. The finest financial brand professional possibilities are produced by multiplying accounting knowledge and enthusiasm with fresh concepts. Additionally, Apples extensive worldwide presence, remarkable legacy, and lucrative rewards encourage world-class performance.

A candidate for a position expects to contribute to the companys sustainable development, be creative, work collaboratively, and have a business-minded attitude. These trade secrets of Apple employers branding translate enthusiasm into practice, creating unmatched employment prospects and remarkable encounters. Generally, workers are inspired to provide the finest input, partnerships, creativity, and marketable ideas since the firm gives them the best industry, challenge, remuneration, and culture. In the same way that businesses use ads to sell their goods, each one aims to attract the best candidates to submit applications for open positions. Employer branding strategies are weak in companies with low-quality people or job applicants, resulting in financial losses due to higher recruiting expenses.

On the other hand, Amazon has comprehensive organizational frameworks that have been modified to facilitate adaptability, creativity, and the maintenance of a high level of efficacy in the workplace, given their level of dynamism. The organization boasts a robust platform that enables people within the entity to change or adapt their positions to meet business requirements appropriately. As a result, the organization employs an engaging and distinctive job advertisement that does not restrict applicants to the job description. Due to its market position and digitally oriented primary enterprise, the company is profit-inclined above all else. Regarding the length of the recruitment procedure, the companys online jobs platform takes too long to update the application status.

Amazon has been charged multiple times for waiting too long to hire personnel; consequently, the submitted application condition can remain unchanged for months before the status is updated and the application is archived. Amazon recruits personnel primarily through its website and does not employ social media networks. The negative characteristics of its recruitment procedure have impaired the organizations reputation. With respect to these variables working at Amazon is questionable, and preferably their work setting should undergo a major upheaval.

Incorporation of Social Media to Support Branding

Apple has consistently cultivated close ties with social media platforms. Apples social media channels use a bespoke hashtag with a gradient Apple logo and an accompanying video to refer to a special #AppleEvent on Twitter (Stroud, 2022). These features facilitate Apples rapid assimilation and influence on individuals. Almost everyone will be able to quickly and readily identify the name Apple and will be familiar with the firm in some way. Being steady with their business is the first method a company may utilize social media to develop. Consistency fosters trust among both existing and future clients. Customers want to feel confident doing business with a company, so using social media and projecting a good attitude is an excellent approach to instilling trust. Moreover, the company can use social media to develop goodwill by offering incentives to those who promote their business on social networks.

Using social media to promote offers can pique the curiosity and interest of consumers. Lastly, a business can employ social media to develop consumer trust by being truthful with them. Being direct and open with consumers on social media is an excellent method for gaining their allegiance. Thus, it is essential for recruiters to be forthright and honest with customers if they make an error. Two regulations should be followed when using social media appropriately: the employee must be genuine and competent, and if they have an issue of their own, they should not disseminate it on social media. It is crucial to maintain a professional image on social media by avoiding defamation and prejudiced content, as well as arguments. Consequently, the use of personal social media ensures that the staff member refrains from referring to their current employer for personal reasons and does not discuss their present company. Google, Netflix, and Amazon Inc. use Instagram, and Twitter accounts for hiring and educating new employees by routinely modifying their working environment and accomplishments.

Instagram is used by businesses to market their profiles and inspire the next generation to work for them and launch a new career. Numerous businesses also utilize Facebook to advertise their accounts. Google is not particularly well-liked on social media, and its achievement is frequently dismissed as unfavorable. The platform serves as a means of interaction between the current generation and the next, as well as a tool for employee motivation, thanks to its variety of benefits.

Best practices

These businesses utilize a variety of procedures, but the common standards include hiring qualified executives who can find talented personnel. Hence, to oversee the hiring process, there must be a structure, and the interview panel must adhere to it. To prevent online applications from being compromised or lost, a candidate pool must be established, and online recruiting must be safeguarded. The organization must strive to hire the most powerful leaders to teach the new employees, and the managers must have a positive connection with the staff. The recruiters who can pick the best people for the organization must be paid, and their correspondence must be secured.

Recruiters must comprehend the companys expectations and hire personnel to increase the firms profit margins and expand into international markets. When one becomes a staff member of Apple in any capacity, they will receive up to a price reduction of 25% on iPod, iPad, iPhone, and Macbook items. As Apple employees, they will receive a discount of up to 50 percent on software products (Tran & Dan, 2022). Importantly, relatives of employees who complete the hiring round are also eligible for the limitless preferential price. In addition, these enterprises will provide an additional $250 voucher when purchasing an iPad or a $500 voucher when purchasing a computer (Tran & Dan, 2022). The result is that employees return from such leaves with enthusiasm.

At Amazon Inc., Netflix, and Google, the policies of the HR department details that female employees who successfully completed the hiring process and are now formally employed by such companies are entitled to 4 weeks of maternity leave and six weeks of prenatal leave (Tran & Dan, 2022). Businesses will arrange a few weeks of paid leave for husbands whose wives are pregnant. Firms want to select the best candidate who best satisfies their stated hiring criteria, which may include abilities, desires, values, and the future direction of the firm.

Steps to Recruiting a More Diverse Workforce

The recruitment personnel must be created and educated in order to recruit capable and efficient employees; the hiring procedure must incorporate innovation and diversity. With their existing commitments, technology companies can attract candidates. Employees are to be rated in order to be rehired, and online recruitment can be enhanced to be more diverse by permitting people from all backgrounds to apply on a single platform. Communication with prospective employees must occur via social media, and applications for employment must be handled without discrimination or bias. The workforce must be made competent through recurrent training measures.

The recruiters must facilitate the selection of a sufficient interview pool determined by the skills and abilities of the candidates. Apple should establish a recruiting path for young people by defining the qualifications for the positions available within the company. It is advantageous to be able to distinguish between the skills and competencies that are required from the start and those that can be created on the job. After defining the available positions, Google selects candidates and evaluates their skill level and employment history.

As a consequence, the organizations diversification statistics have improved. Apple, for example, has increased its underrepresented communities (URCs) by a staggering 74%, which equates to over 18,000 individuals, and they make up close to half of Apple Incs personnel (Inclusion & Diversity, 2021). Nevertheless, as Netflix expands beyond the Western worlds borders, it appears that this focus on diversity, henceforth the diversity framework is a chief component of Netflixs transnational expansion (Asmar et al., 2022). Netflix generates an international appeal via its branding of diversity. Amazon and Google actively recruit candidates from diverse backgrounds by partnering with historically Black colleges and universities. Amazon, for instance, has thirteen affinity organizations with over 87,000 workers spread across hundreds of chapters worldwide (Diversity, 2020). This dedication appears to support the organizations decision to diversify its content to appeal to a broader audience.

External Recruitment Method

Create accounts using an email account for external hiring. After that, credentials are obtained from candidates and evaluated by online job boards. Candidate user profiles are chosen by organization boards, and more information is sent to the candidate via emails or texts. Before applying for a specific position, a candidate might consult the day branding that has been produced for the candidate pool. A huge selection of chances is made accessible through the platform when the intent job board asks the individual about their preferences. The organization can build its profile and brand to draw in creative and fresh candidates. Recruiting passive applicants is also possible via this platform which requires an EVP and employer profile in order to recruit every candidate bit by bit, retain the relevance and integrity of the description, and protect applicants interests.

Furthermore, examples of external sources for recruitment include higher education institutions and job seekers. The hiring process at Google includes self-reflection, job research, resume writing, online application, interviews, decision-making, and offers (Build for Everyone, 2023). By using these channels for recruitment, the company can guarantee a constant flow of candidates while also matching their qualifications to the need of the company in terms of human resources.

Google, Apple, and Amazon all use a combination of internal and external sources in addition to direct and indirect recruitment strategies. For example, HR management uses the direct method of hiring fresh graduates from colleges and universities. Thus, to inform recent graduates about available internships and career possibilities, representatives from the organizations organize outreach activities at educational facilities and universities across the world. Similarly, firms use their employees to recommend candidates for open positions. Regarding indirect recruitment, which is the most used, Google, Apple, and Amazon use employer review sites (Patel, 2021). As such, keeping a positive presence on job review sites such as Glassdoor, where prospective employees can read evaluations and get a feel of the companys culture and values.

A combination of overt and covert strategies, as well as a combination of internal and external recruitment channels, are used to suit the firms human resource demands. A critical aspect of Googles expansion as a hub for origination is the recruitment strategy it uses when hiring employees. The steps of the Netflix hiring process are distinct and well-defined. The Netflix recruiting process has four basic steps. In order to assess the candidates coding skills, the third step is split into two sections and consists of two rounds of interviews (Unstop, 2023). The steps in the Netflix hiring process are as follows: Prescreening with the recruiter, a phone interview, an on-site interview with rounds 1 and 2 of coding, and lastly, an HR interview (See Image 1).

A Netflix Recruitment Process

Conclusion

Companies identity and recruitment processes go hand in hand for their prosperity. It is challenging for organizations to distinguish between the two activities, and the perception among customers and the larger community begins with the recruitment process. Organizations that prioritize this are more likely to succeed than those that choose to disregard such elements. Companies with a thorough yet streamlined recruitment method are more likely to attract the most talented employees. Companies that fail to do so frequently wind up with employees who do not exceed expectations and instead do only the bare minimum. Therefore, organizations must pursue substitutes for most organizations typical recruitment procedures. It requires moving above and beyond the norm.

References

Asmar, A., Raats, T., & Leo Van Audenhove. (2022). Streaming difference(s): Netflix and the branding of diversity. ResearchGate. Web.

Build for Everyone  Google Careers. (2023). Google. Web.

Diversity, Equity, and Inclusion. (2020). US about Amazon. Web.

Inclusion & Diversity. (2021). Apple. Web.

Patel, J. (2021). Employer Review Sites. PeopleScout. Web.

Stroud, S. (2022). Apples social media: The tech giants marketing. Giraffe Social Media. Web.

Tran, N.Q., & Dan, C. (2022). Apples strategic approach to the issues of employer and human resource branding. ResearchGate. Web.

Unstop  Competitions, Quizzes, Hackathons, Scholarships and Internships for Students and Corporates. (2023). Unstop. Web.

Yacine, L. (2021). Employees-as-customers: Coupling the employee value proposition and millennials experience in the construction of the internal brand. Tuni.fi. Web.

Introduction

Cost leadership techniques are helpful in consistent and reliable conditions. To achieve this, the Amazon Company has effectively implemented processes to lower employees costs and reduce expenses through lower-cost raw materials, manufacturing processes, and dissemination. Differentiation strategies might include trademark, innovation, service quality, distribution channel, and other factors (Kurt and Cemal 101). The Amazon Company does its sales online, providing a wider variety of goods and services to its immense customers.

The Amazon Company is no exception, investing heavily in technological advances, including a significant investment in Deliveroo, a UK grocery delivery service, and broadband internet for online customers. Because Amazon Company carries out E-commerce, it has a broader geographical market that operates worldwide. Amazons goal to become a significant participant in Filmmaking could lead to the purchase of Metro-Goldwyn-Mayer in the United States, thus raising its profits (Siewe Wadeu et al. 2). Therefore, this underlines the multiple conversations between the tech firm and the ancient television and film production.

Performance Analysis

Based on Amazons customer performance KPIs metrics, Amazon operates on the metric of the impact that stipulates that the commodity is designed to induce alterations in client conduct. As a result, according to Denning, it has a customer satisfaction score of 82 (12). Compared to a customer performance metric of 74% of one of its fierce competitors, Walmart, Amazon has proven to enhance a good CRM (Martínez et al. 72). Second, about marketing KPIs, on the cloud service marketplace, Amazon, Google, and Microsoft represent a combined 60% of all consumers (Purcarea 15). It, therefore, means that the remaining 40% is shared among its competitors that deal with sales of commodities.

Lastly, considering its financial KPIs, the income statements or the balance sheets provide positive growth of its transactional activities compared to its competitors. In the first quarter of 2021, Amazon had a total quarterly gross margin percentage of 27.26% (Humborstad 40). Comparing the quarterly gross profit margin performance to eBay, which stands at 72.78% (Humborstad 40), shows that other online businesses such as eBay are rising. The Amazon Company has excelled in operating massive scale technology infrastructure. The Amazon Web Service offers a wide range of services that span almost every facet of contemporary network infrastructure (Humborstad 40).

Various systems may interface with others and form advanced techniques, one of the primary points (Humborstad 40). The RD service is one of the programs available (Humborstad 40). Humborstad suggests that the RDS can connect to various standard systems and supplements database systems such as Amazon Aurora (40).

The Amazon Company is failing in customer relationship management, and this has seen Costco surpass it in terms of quality customer satisfaction. Among the most compelling examples of Costco CRM is private brand merchandise (Chen 24). The fact that Amazon owns a more significant share of the online market than its competitors has made it less focused on the physical market, thus affecting its annual net income. It also points out the reason other companies such as eBay are becoming more prominent.

External Analysis

Amazon operates in a perfect competition market among eBay, Costco, Walmart, and Target. Amazon operating in such a market poses competitive risks in terms of the overall market share and gross profit margin. The Amazon Company is in the maturity phase of the industry life cycle characterized by intensified competition (Binz 1262). The mentioned characteristics are evident considering the recent competition it faces from Costco and eBay. Amazon has been trying to redefine itself with the numerous market diversification such as technological advancements to attain greater markets.

Porters five forces of influence in studying firm competitiveness can be an effective instrument. Considering the power of buyers, because of the low pricing that Amazon gives to buyers who make purchases of books on their platform, such customers are likely to become frequenters (Sadq et al. 68). As Amazon continues to develop the power of suppliers, its ability to create a fruitful agreement with suppliers continues to rise. Amazon is a competitor because it was among the first organizations to enter the E-commerce market, and as such, Amazon gains a good elevation of calm in the market. It would be difficult for new arrivals to challenge Amazon in the main contemporary markets effectively.

Consequently, at least for the time being, Amazon does not face a significant risk of substitution. The available external opportunity for Amazon is that it may continue expanding its marketplaces globally to keep its dominance in the E-commerce business. The threat that Amazon faces is the surface of an opponent of its level, shattering all Amazon has created over the ages (Sadq et al. 68). The external environment that encompasses the economic and technological environments, for instance, the current economic downturn, has wreaked havoc on the world financial markets since 2008 to date (Sadq et al. 68). Thus presenting a significant risk to Amazons market by lowering its annual profits.

Internal Analysis

The following vital resources are inbound logistics, marketing and sales, and online services. The inbound logistics are deployed at the logistic part of the supply chain, marketing, and sales at the advertisement and promotion level of the supply chain, whereas the online services are at the final consumers level. The mentioned three essential resources are all costly to imitate since the amount of money a competing company may use to copy them is hefty.

These elements using VROI analysis are how they rate the trustworthiness of domains concerning a push notification, how it engages with businesses looking to promote alongside inquiries, and how much it costs users (Onyusheva et al. 59). Furthermore, VROI analysis places Amazon as having a bold and innovative method of gaining entry to various market segments (Onyusheva et al. 59). Therefore, Amazon has positioned itself as the sectors leading player with a truly global client base.

Some of the internal environment strengths of Amazon Company include taking advantage of the movement in commerce to cloud hosting (Onyusheva et al. 57). The threats include Amazon user software is expected to improve as prices continue to fall, implying that e-books will become more costly. There are many entrants on the scene, and payment solutions for Amazon over the web would have to face competition from players all around the globe. As a result, the internal environment presents a loss of online market with the increasing cost of e-books.

Conclusion

Amazons cost leadership strategy seems perfectly working as it has emerged as a top online business. However, its online strategy has neglected its physical market, thus losing a greater hare to Costco. Amazon could pursue mergers and acquisitions and increased technological innovations. Mergers and acquisitions would help reduce competition and increase its total market share as compared to its competitors.

Consequently, improved technological innovations would help improve customer service, thus leading to more outstanding CRM. Merging and acquisitions could also pose a greater risk of administrative costs and challenges due to the long-chain in administration. Compared to lesser rivals, Amazon has a considerable competitive advantage. Due to offering the best E-commerce experience, the engagement with its customers, and the duration of its client relationships, Amazon has grown and prospered due to its successful expansion hence becoming lucrative.

Works Cited

Binz, Christian, et al. Catch-up Dynamics in Early Industry Lifecycle Stagesa Typology and Comparative Case Studies in four Clean-tech Industries. Industrial and Corporate Change, 2020. Web.

Chen, Jiangpei. Marketing Strategy Management of Costco: Analysis and Comparison to S-Group, 2021. Web.

Denning, Stephen. How Amazon uses Metrics to Drive Success. Strategy & Leadership, 2019. Web.

Humborstad, Trond. Database and Storage Layer Integration for Cloud Platforms. MS thesis. NTNU, 2019. Web.

Kurt, Ali, and Cemal Zehir. The Relationship between Cost Leadership Strategy, Total Quality Management Applications and Financial Performance, 2016. Web.

Martínez, Ascensión Barroso, Ramón Sanguino Galván, and Samsul Alam. Financial Analysis of Retail Business Organization: A Case of Wal-Mart Stores, Inc. Nile Journal of Business and Economics, 2017. Web.

Onyusheva, Irina, and Tanatthon Seenalasataporn. Strategic Analysis of Global E-commerce and Diversification Technology: The Case of Amazon.com Inc. The EUrASEANs: Journal on Global Socio-economic Dynamics, 2018. Web.

Purcarea, Ioan Matei. Marketers Reskilling within the Digital Transformation, a Todays Essential Task for Approaching New Digital Roles. Holistic Marketing Management Journal, 2019. Web.

Sadq, Zana Majed, Hawre Nuraddin Sabir, and Vian Sulaiman Hama Saeed. Analyzing the Amazon Success Strategies. Journal of Process Management. New Technologies, 2018. Web.

Siewe Wadeu, Dr Justin, and Catherine Ndjuta Bidzoh. Strategic Diversification through Acquisition: The Move of Amazon to Acquire Metro-Goldwyn-Mayer (MGM), 2021. Web.

Since Organization and Leadership Review (OLR) has two goals  finding and preparing future leaders, and identifying the least effective employees and making them improve on their skills  it might present a good motivation for the workers. It devises a system of promotion based on assessing actual skills of the workers, so those who show exceptional results get ahead and grow professionally, while those who cannot perform well enough get a chance to correct their mistakes and come up to the others level. Such an approach increases the overall productivity of a working unit. However, the one-way communication approach might be a drawback.

There might be some inconveniences regarding the use of rater bias, stereotyping, and traits appraisal, as workers might not be comfortable with these procedures (Hellein, R. & Bowman, J., 2002). In the case of rater bias, for example, workers may feel discomfort with giving feedback, personality differences between the manager and the employee (Traub, 2013, p. 5). This kind of rating would hardly benefit the one being reviewed. Stereotyping is considered an error in reviewing, as it compiles opinions and impressions formed before the review even starts. To deal with these problems, we have to make sure that employees state their opinions clearly and honestly, without fear of being judged by their colleagues or superiors.

I assume that the appraisal system that resembles OLR most closely is the behavior-focus performance appraisal, as it is based on evaluating employees on a scale from best to worst. Their future is decided through this assessment, with a chance of the best getting promotion, and the worst at risk of getting fired.

The appraisal system that would best meet Amazons objectives of retaining the best employees, while taking corrective action with the bottom 10%, would be a combination of psychological appraisal (evaluating workers intellectual abilities, analytical skills, emotional stability, etc. in order to make better team-forming decisions) and the grading and checklist appraisal (using A to F letter grades and checklist questionnaires to find out more about an employee and rank him or her accordingly) (Griffin, n.d.).

With electronic performance monitoring, a company like Amazon can supervise and analyze an employees activities in real-time. This method is effective, since electronic monitoring systems are also used to continually collect information on performance metrics, such as average call handle time, a total number of calls handled, and time on breaks (Can Electronic Monitoring Improve Employee Performance, 2014, para. 3).

The studies showed that, on one hand, electronic performance monitoring had the same effect on workers as a boss or a supervisor constantly present nearby  the more frequently they were monitored, the more motivation they had to work better and spend less time on personal activities during working hours (Bhave, 2014). On the other hand, employees motivation to do better, to help out their co-workers, and to perform their duties with excellence comes from the desire to make a good impression on the evaluators, rather than from the ambition to achieve good results for their company.

One-way communication does not give evaluators a full overview of the workers personalities. It is simply based on the suggestions of supervisors: They select subordinates suitable for promotion, and they decide whose performance deserves reformation. The fact that the workers themselves do not have any say in this seems unproductive as, for example, firing people without talking to them thoroughly might exclude the possibility of ever finding out whether or not they had any room for improvement (Bularzik et al., 2013).

The positive aspect of this approach is the set of guidelines it creates for promotions and the fact that top performers receive high compensation in accordance with the quality of their work.

References

Bhave, D.P. (2014). The Invisible Eye? Electronic Performance Monitoring and Employee Job Performance. Personnel Psychology, 67(3), 605635.

Bularzik, A.M.H, Tullai-McGuinness, S., & Sieloff, C.L. (2013). Nurses Perceptions of Their Group Goal Attainment Capability and Professional Autonomy: a Pilot Study. Journal of Nursing Management 21, 581590.

Can Electronic Monitoring Improve Employee Performance? (2014). Web.

Griffin, D. (n.d.) Types of Employee Appraisal Systems. Web.

Hellein, R. & Bowman, J. (2002). The Process of Quality Management Implementation. Public Performance & Management Review, 26(1), 75-93.

Traub, L. (2013). Bias in Performance Management Review Process. [Brochure] Silver Spring, MD: Cook Ross Inc.

Introduction

Managing inventory levels for companies that sell goods is a significant task. A company needs to maintain optimal inventory levels because having too much inventory increases cost such as storage, wear and tear, and interest. In addition, capital which could have been used for other income generating investments is tied up. On the other hand, having inadequate inventory may lead to loss of revenue because the company may not be able to meet demand.

This creates the need to constantly monitor the inventory so that there are no shortage and excesses. It is also worth mentioning that inventory management has a direct effect on the working capital and liquidity of a business. Therefore, failure to manage it may also affect other aspects of the business and the day-to-day operations. In addition, the company can fail to raise adequate cash flow that can pay immediate obligations. One tool that the company can use to monitor inventory level is the inventory turnover ratio. This ratio works together with days in inventory. This paper seeks to carry out a comparative analysis of the two ratios for Amazon.com, Inc. and Wal-Mart Store, Inc.

Inventory Turnover

This ratio is arrived at through the division of cost of sales and average inventory. Further, it gives information on the number of times a company replenishes stock in the year and the liquidity of inventory. A high inventory turnover ratio is often preferred because it shows that minimal funds are tied up in inventory. In addition, it also shows that a company has minimal storage costs. An extremely high value of inventory turnover ratio is also not favorable because it could imply that the company does not have enough stock that can meet demand.

In addition, it indicates that the company is spending a lot of reordering costs. Therefore, the company can lose sales opportunities due to shortages. On the other hand, low inventory turnover ratio implies that a company takes long before it replenishes stock. It can also indicate that the company is dealing with slow moving goods. It is worth mentioning that obsolete stock can also lead to low inventory turnover ratios (Goyal & Goyal, 2013).

Inventory turnover ratio depends on purchases of stock and sales. For instance, if a company buys a large amount of stock then it will have to make a large amount of sales so as to improve the turnover ratio. Therefore, sales have to match purchases so that the company can turn over effectively. Otherwise, the company may have unfavorable ratios. There are a number of factors that can affect the inventory turnover ratio. The first reason is obsolescence.

If a portion of inventory held by a company is out-of-date, then they cannot be sold. This will increase the inventory balance, thus reducing the value of inventory turnover ratio. Secondly, the inventory accounting method and price fluctuations can cause swings in the inventory balance. The use of either last-in-first-out, first-in-last-out, or weighted average in inventory valuation can affect the reported inventory balance and the turnover ratio. Finally, seasonal buildup can affect the value of the turnover ratio. For instance, stock of a product can build up ahead of the selling season. This can also distort the inventory turnover (Kimmel, Weygandt & Kieso, 2016).

The calculations for inventory turnover are presented in the attached excel file. The cost of sale for Amazon.com, Inc. was $62,752 million in 2014. The inventory balance of 2014 and 2013 were $8,299million and $7,411million respectively. Thus, the estimated value of inventory turnover ratio is 7.99 times. This implies that the company replenishes stock 7.99 times in a year. In the case of Wal-Mart Store, Inc., the cost of sales for 2015 amounted to $365,086.

The inventory balance of 2015 was $45,141 million, while for 2014 amounted to $44,858million. The resulting value of inventory turnover is 8.11 times. A comparison of the two companies shows that Wal-Mart Store, Inc. had a slightly higher level of inventory turnover than Amazon.com, Inc. This implies that the company replenishes stock faster than Amazon.com, Inc. The industry average for inventory turnover is 8.4 times.

It signifies that the rate at which the two companies turns inventory is lower than the industry average. It is worth mentioning that the inventory turnover ratio varies from one industry to another because the industries sell different products. For instance, companies that sell fast moving stocks such food items are likely to have a high inventory turnover ratio as compared to entities that sell heavy machinery and equipment. This explains why it is important to compare the ratios calculated for a company with the specific industry average rather than general averages (Kimmel et al., 2016).

Days in Inventory

The ratio is arrived at through the division of 365 days in a year by the inventory turnover ratio. This ratio gives information on the duration of time inventory is held in the business. In the case of Amazon.com,Inc., the days in inventory was 45.69 days, while the ratio for Wal-Mart Store, Inc. was 44.99 days. The ratio shows that the average time that inventories spend on the shelf of Wal-Mart Store, Inc. is shorter than the duration they spend at Amazon.com, Inc. The industry average for days in sales is 43.5 days. This implies that stock takes a much longer time in the store of the companies than the average level in the industry (Kimmel et al., 2016).

Conclusion

Inventory turnover ratio and days in inventory are good indicators of how an entity effectively controls its merchandise. A comparison of the two companies shows that Wal-Mart Store, Inc. is more efficient in inventory management than Amazon.com, Inc. This can be attributed to the high inventory turnover ratio and low day in inventory. The ratio analysis also shows that the inventories for Wal-Mart Store, Inc. are more liquid than those of Wal-Mart Store, Inc. The efficiency in the management of inventory at Wal-Mart Store, Inc. can be attributed to the sophisticated inventory tracking and distribution system that enables the company to maintain reasonable levels of inventory balances, while still ensuring that there is adequate stock for customers.

This resonates with the contemporary business world where businesses invest heavily in systems and technology to monitor the movement of inventory. However, the efficiency in the management of inventory for the two companies was lower than the industry average. Therefore, the two companies need to review their policies and processes with an aim of improving efficiency.

References

Goyal, V. K., & Goyal, R. (2013). Financial accounting (4^th ed.). New Delhi, India: PHI Learning Private Limited.

Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2016). Financial accounting: tools for business decision making (8^th ed.). New Jersey, NJ: John Wiley & Sons, Inc.

The approach to the marketing mix theory is changing dramatically due to the transformation of business processes and customer behavior, as well as the evolution of the digital age. Researchers state that the rapid development of the digital environment and related products have redefined the routine lives of individuals and changed the way people relate to information, brands, other people and even themselves (Jackson & Ahuja, 2016, p. 170). Amazon is one of the few giants in the digital entrepreneurial industry that has become a significant competitor to Apple and Google in the past decade. This paper analyzes the elements of the marketing mix regarding Amazon and examines their interaction that contributed to the companys business success.

Elements of the Marketing Mix

Product

Amazon provides an incredibly diverse range of products and services distributed through online retail. The company initially started as a bookseller and is now a world leader in this area (Majed et al., 2018). Currently, Amazon also offers music, video, consumer electronics, various digital content, and even food products. Differentiation of the company is achieved not through a specific product, but through creating additional opportunities for the development of electronic distribution channels (Pogorelova et al., 2016, p. 6746). Amazon is constantly expanding the range of available products and services, enhancing the potential of its digital services.

Price

It should be noted that pricing in the digital market is rather dynamic. Researchers note that Amazon was able to attract such a broad audience due to the low prices it could offer (Majed et al., 2018). At the same time, the company is flexible in its approach, offering different prices for one product, depending, for example, on the national market conditions or product variant. The companys marketing strategy includes extremely high price volatility compared to its competitors. The price of some products may change several times a day within a 20% range, depending on market conditions (Pogorelova et al., 2016). This allows the company to adapt its marketing strategy more accurately to the specific market situation.

Promotion

In the digital age of information redundancy, promotion becomes paramount for market participants. At the moment, promotion and advertising are integrated by the term communication, although it also includes the purpose of attracting customers (Jackson & Ahuja, 2016, p. 171). Amazon has developed a recognizable brand image that is constantly present in business media. In addition, it actively uses contextual and social networks advertising. The company also performs sales promotion using the digital platforms and establishes public relations with potential customers included in the target audience.

Place

This element of the marketing mix is key to e-commerce as it represents its main benefit to customers. Amazon, along with other market participants, has digital marketplaces, including official distribution sites. The convenience of these services and the transactional process is one of the primary reasons for its success. According to Pogorelova et al. (2016), for information products the period of time and costs to fulfill the orders are small, which results in a vast number of transactions on the platforms (p. 6748). In this way, the digital space serves as an easily accessible and user-friendly marketplace.

Business Success Analysis

It should be emphasized that the combination of all marketing mix elements ensures Amazons leading position on the market. The foundation for the success of this business is the place, that is, the digital market platform available to any customer with a smartphone or computer. This effect would not have been achieved if this element of the marketing mix had been detached from others. The digital marketplace offers the opportunity to distribute any product, especially information ones, and therefore Amazon is expanding its product range. The global nature of the distribution of the products and services requires flexibility and a dynamic influence on pricing in view of market conditions. Amazon implements a wide range of promotion and advertising measures on social networks and other Internet platforms. Thus, although the place is the key element of the marketing mix in this regard, the product, price, and promotion ensure the performance of business operations that would not be possible in their absence.

Conclusion

Amazon has successfully applied innovative digital space trends to establish an effective marketing strategy. Each of the marketing mix elements harmoniously complements the others, offering the customer a convenient online service to purchase a wide range of products and services. With a combination of the digital marketplace, flexible and dynamic pricing, broad product coverage, and innovative online promotion methods, Amazon has become a leading market player.

References

Jackson, G., & Ahuja, V. (2016). Dawn of the digital age and the evolution of the marketing mix. Journal of Direct, Data and Digital Marketing Practice, 17(3), 170-186.

Majed, S. Z., Nuraddin, S. H., & Hama, S. V. S. (2018). Analyzing the Amazon success strategies. Journal of Process Management  New Technologies, 6(4), 65-69.

Pogorelova, E., Yakhneeva, I., Agafonova, A., & Prokubovskaya, A. (2016). Marketing mix for e-commerce. International Journal of Environmental & Science Education, 11(14), 6744-6759.

Introduction

In current economic conditions, the issues of accounting and economic analysis of the financial results of the organizations activities are of great importance. The main advantage of accounting can and should be considered that only thanks to its data is it possible to determine the indicators of profitability and profitability of the enterprise and thereby assess the effectiveness of decisions made by its management. It is important to analyze not only the dynamics, structure, factors, and reserves of profit growth but also the ratio of the effect of profit with the available or used resources, as well as with the income of the enterprise from its ordinary and other economic activities, studying the final financial results of the enterprise. The need for this comparison can also be explained by the fact that many enterprises that have received the same amount of profit have different volumes of turnover, different costs, and resources. In general, the economic and financial analysis of the results of the economic activity of the organization allows developing a specific strategy and tactics for its development, the identification and assessment of reserves for the growth of profits and profitability, and ways to mobilize them.

Amazon, Google, and Microsoft are the most prominent players in their marketplace, spanning multiple industries. Over the years, Amazon has shown successful growth in its gross income, net and operating income, and total equity (Wells, Danskin & Ellsworth, 2018). Amazon is also famous for its recommendation systems and personalization, becoming research by scientists (Smith & Linden, 2017). However, Amazons reputation, despite its success, has not always been clean. First, there is the potential for the Matthew effect and the Ratchet effect, which in this context implies support for successful stores and a lack of support for small ones (Chua & Banerjee, 2017). Second, Amazons exit prevents affected third-party sellers from continuing to grow on the platform, increasing product demand and lowering shipping costs for consumers (Zhu & Liu, 2018). However, this did not stop Amazon from maintaining a steady growth in financial performance. This paper compares these indicators with those from Google and Microsoft to determine which company and why growth was more stable, more noticeable, or vice versa.

Microsoft is only partly a competitor to Amazon. This company has almost the same market capitalization with a lower annual turnover (Hazlett, 2020). The company is engaged in online sales, creates equipment but does not provide its streaming video and audio services and third-party marketplace (Wegman et al., 2018). Google, in turn, has all of these industries: streaming services, and the ability to place on the marketplace, and online sales, and even its own payment system (Kim & Choi, 2019). As of 2018, Google had a lower turnover than Amazon, with almost the same market capitalization (Sadq, Sabir & Saeed, 2018). Amazon also has amazon music, prime, marketplace, and payments; it creates its technique based on online sales.

Financial Analysis

For financial analysis, five different financial indicators were selected, which generally show the efficiency and profitability of the company. Among them is the current liquidity ratio, which shows its ability to pay off its short-term liabilities without attracting additional income (Bogdan, Bareaa & Ivanovi, 2012). This indicator was chosen since Amazon is relatively low compared to Google or Microsoft, demonstrated in tables 1, 6, and 11. However, with constantly growing profits, as shown from table 2, Amazon can slow down investments if necessary, save a certain amount of money from increasing this indicator.

The net profit margin was chosen as an indicator of profitability for a reason. Firstly, this indicator is the main one when evaluating a company, and best reflects its profitability (Nariswari & Nugraha, 2020). Secondly, for ten years at Amazon, it even went into the negative, an incredible difference compared to Microsoft and Google. However, upon deep examination of the company, this only indicates that Amazon has been pursuing a course of continuous development, having incurred many expenses over the past decade, investing almost all of its profits back into the company (Hahn, Kim & Youn, 2018). This approach promises significant profits over the long term.

Amazon has the best asset turnover ratio over its other two competitors due to its large profit injection. However, Amazons inventory turnover is relatively low due to a large number of various goods with different restock periods. Finally, Amazons high receivable turnover ratio, the latter, suggests that the company operates on a cash basis and has a conservative view of lending to its suppliers or customers (Al-Marzooqi & Nobanee, 2020). Microsoft and Google are likely to have more recent approaches in this regard, as shown by the lower scores in Tables 8 and 13 compared to Table 3.

ROE, ROA, and ROI indicators show the companys attractiveness for investment. Amazon has seen leaps and bounds over the past decade, but the steady, high growth creates the edge over Microsoft and Google. The latter two companies perform well in general but lack stability, which is essential in this regard. In addition, Amazons sharp jump in ROE is partly due to rising debt, which means that investors should focus more on other profit margins. Reflection and comparison can be seen in tables 4, 9, and 14 below. Tables 5, 10, and 15 show leverage ratios that are low enough for all three companies. It means they are not pursuing aggressive debt financing strategies, as evidenced by their debt obligations.

Table 1. Amazon Liquidity Ratio

Table 2. Amazon Profitability Net Margin Ratio

Table 3. Amazon Efficiency Ratios

Table 4. Amazon Investment Ratios

Table 5. Amazon Gearing Ratios

Table 6. Microsoft Liquidity Ratio

Table 7. Microsoft Profitability Net Margin Ratio

Table 8. Microsoft Efficiency Ratios

Table 9. Microsoft Investment Ratios

Table 10. Microsoft Gearing Ratios

Table 11. Google Liquidity Ratio

Table 12. Google Profitability Net Margin Ratio

Table 13. Google Efficiency Ratios

Table 14. Google Investment Ratios

Table 15. Google Gearing Ratios

Conclusion

In comparison, the three companies generally have positive dynamics of financial indicators, taking into account even some drops in 2012-2015. Constantly growing profits and attractiveness for investors, independence from debts compared to other competing companies distinguish these companies on the market. Amazon, however, differs from Microsoft and Google by small indicators of net profit margins, which in the long term can bring certain benefits that will leave competitors far behind. Amazon, with a vast range of products and services sold, has pretty good asset turnover indicators. This work does not consider 2021 and the impact of the pandemic since there is still no available information on these companies. Given the pandemic, the analysis would have included many more factors that had to be taken into account in assessing the data of the three companies.

Reference List

Al-Marzooqi, M. B., & Nobanee, H. (2020). Financial Analysis of Amazon. Available at SSRN 3647442.

Alphabet Financial Ratios for Analysis 2005-2021 | GOOGL. Web.

Amazon Financial Ratios for Analysis 2005-2021 | AMZN. Web.

Bogdan, S., Bareaa, S., & Ivanovi, S. (2012) Measuring liquidity on stock market: Impact on liquidity ratio, Tourism and Hospitality Management, vol. 18, no. 2, pp. 183-193. Web.

Chua, A. Y., & Banerjee, S. (2017) Analyzing review efficacy on Amazon. com: Does the rich grow richer?, Computers in Human Behavior, vol. 75, pp. 501-509. Web.

Hahn, Y., Kim, D., & Youn, M. K. (2018) A Brief Analysis of Amazon and Distribution Strategy, The Journal of Distribution Science, vol. 16, no. 4, pp. 17-20. Web.

Hazlett, T. W. (2020) US Antitrust Policy in the Age of Amazon, Google, Microsoft, Apple, Netflix and Facebook, Google, Microsoft, Apple, Netflix and Facebook.

Kim, D. I., & Choi, S. I. (2019) The Analysis of the Relationship between the Review Scale and Posting Information of Company and Purchasing Patterns-Focusing on Amazon and Google Users, Journal of the Korea Convergence Society, vol. 10, no. 10, pp. 153-160. Web.

Microsoft Financial Ratios for Analysis 2005-2021 | MSFT. Web.

Nariswari, T. N., & Nugraha, N. M. (2020) Profit Growth: Impact of Net Profit Margin, Gross Profit Margin and Total Assests Turnover, International Journal of Finance & Banking Studies (2147-4486), vol. 9, no. 4, pp. 87-96. Web.

Sadq, Z. M., Sabir, H. N., & Saeed, V. S. H. (2018) Analyzing the Amazon success strategies, Journal of process management. New Technologies, vol. 6, no. 4. Web.

Smith, B., & Linden, G. (2017) Two decades of recommender systems at Amazon. Com, IEEE Internet Computing, vol. 21, no. 3, pp. 12-18.

Wegmann, A., et al. (2018). Coopetition and ecosystems: case of amazon.com. London: The Routledge Companion to Coopetition Strategies.

Wells, J. R., Danskin, G., & Ellsworth, G. (2018) Amazon. com, 2018, Harvard Business School Case Study, vol. 716, pp. 316-402.

Zhu, F., & Liu, Q. (2018) Competing with complementors: An empirical look at Amazon.com, Strategic Management Journal, vol. 39, no. 10, pp. 2618-2642. Web.

The macro environment audit examines external forces that affect the performance of the online shopping industry in general and the Amazon Company in particular. Amazon Company is the global leader in the online shopping industry. This analytical treatise presents a macro environment audit of the Amazon Company from the findings after interviewing Jeremy Kim and Jonathan White, who are senior managers of the company.

Demographic developments and trends

As revealed by Kim and White, Amazons online services clearly aim at targeting customers of all the age groups, ethnicity, and races. The business does not restrict itself to a particular age domain as online shopping can be a fun activity for everyone. The company accentuates on customer satisfaction and affordability as a strategy for upholding its position as the global business leader. The company has stratified its target market into private and corporate segments (Amazon, 2014).

Economic developments and trends

The internet offers economically sound environment for doing business. Customers from across the globe have a high demand for online shopping services due to the convenience and large discounts they guarantee. This implies that the Amazon business will experience further growth as more people gain access to reliable internet. The increasing demand for online shopping services will prove significant in the overall performance of the Amazon Company (Amazon, 2014).

Environmental consideration

The company needs internet to support its business activities. The company has developed a safer and secure online shopping platform to protect its customers. As a result, the business has experienced stable growth over the last five years and currently has an active presence in all the continents of the globe (Amazon, 2014).

Technological consideration

As revealed by Kim and White, the Amazon Company continues to invest heavily in information and communication technology as it aims at improving service delivery and customer satisfaction. The Amazons mobile application system has continued to be emulated by other players in the industry due to its convenience. Besides, the Service Oriented Architecture (SOA) is a technological initiative by the Amazon Company. The SOA enables the management to monitor general trends in performance at a glance and spot out any existing bottlenecks. The speed with which this happens helps the management to put corrective measures to avert losses or stagnant growth (Amazon, 2014).

Political considerations

The closer economic relations in the global business arena have benefited the Amazons business performance for a long time. This is a good assurance for shareholders, both domestic and foreign, that their investment is safe. However, the recently proposed global internet safety policy might negatively affect the business as a result of unethical business practices that some employees may be involved in. The business cannot be affected by market externalities such as pollution, unemployment, and price control since it operates via an online platform. Besides, the company has an opportunity to explore social marketing to increase its market share (Amazon, 2014).

Cultural considerations

Amazon has adopted a green lifestyle in its long term sustainability strategy. This implies that the company is aware of practices that harm the environment. It has adopted environmental friendly practices for the good of its consumers and the society at large. As a result, the publics attitude toward the companys services is generally positive as indicated in the annual online feedback trend. Among the changes in customer lifestyles and values which might affect the company include the need for secure online shopping and reduced confidence in its services (Amazon, 2014).

Reference

Amazon. (2014). Inside Amazon. Web.

Introduction

For many years, communities have feigned the existence of numerous items that have been brought to life as sentient creatures. Robots were mythologized in classical antiquity, while Asian and Egyptian builders created automatons. Classical thinkers were among the first to attempt to describe the human mind as a sign representation. Machine learning, on the other hand, was not fully established until 1956, when the term artificially intelligent was used in a University symposium in Hannover, England.

Artificial intelligence is the capability of robots to accomplish certain activities that need living creature intellect. Specific objectives are met by using a machine that uses the AI to operate. There is little or no help from humans, and they use existing information, which they learn from automatically. Deep tools enable the computer to process large volumes of large datasets, including text, photos, and sound. The intellect in artificial intelligence and machine learning has reorganized the Amazon services.

The Strategy of Management by AI

Amazons AI strategy is a flywheel, straightforward equipment used to effectively store potential motion in engineering terminology. Whenever a machine is not running consistently, it stores energy. Rather than squandering, remember to turn on and off; the flywheel maintains a steady energy level and distributes it throughout the system. This strategy supports AI development moving forward while promoting passion and competence to spread throughout the company. The carousel model at Amazon implies that achievement in computational intelligence for one area spurs projects in other divisions. These groups took advantage of possibilities to propel their goods, which has an impact on the companys core innovation.

Therefore, what is developed in one section of Aws plays a vital role for Artificial intelligence and machine understanding growth in those other parts of the company. The corporation was among the first companies to employ techniques to create product suggestions. However, as Ai and automation become more prevalent, the flywheel strategy became a cornerstone of Amazons growing company  a prominent pillar that binds the corporation together at the firms pinnacle. This is especially noteworthy when more organizations keep their AI initiatives apart from the rest of their operations.

The Location of the AI in Amazon

AI is not in a single location, and data is dispersed across divisions. The market suggestion team uses machine learning technologies to enhance product projections, and those findings are disseminated throughout the firm. Alexa, the Amazon Go Retail outlet, and the Amazon learning algorithm are powered by Machine learning and artificial intelligence. Another of Amazons more prominent excursions into deep understanding was the Echoes, including the AI assistant Alexa. One of several businesses attempted to invent a vocal style software application that could slot on a worktop, so it had an uphill struggle initially. As the innovation began to come along, many divisions recognized that Echo might be advantageous to its respective products. Connections with iTunes, Video On-demand, and tailored product suggestions from an online account were amongst Alexas early talents.

The Amazon Go storefront also used a trove of information to analyze client shopping habits in the checkout-free situation. Data through consumers camera phones were used to monitor purchasing behaviors and could be exchanged with its machine learning group for further development. Amazons predictive algorithm, which earns 35% of the income statement, also relies heavily on AI. It produced a customized list of things that consumers genuinely wanted to buy, drawing on statistics from different consumer interests and transactions, browser habits, and commodities that were connected and frequently bought jointly.

Using Machine Intelligence to Create a Consistent Consumer Experience

Information from the firms three fundamental pillars is combined to provide seamless customer service. A consumer may go to the Online store shop to pick up a few goods for meals, then ask Echo to search up a batch, and the goods predictive algorithm will figure out how the customers will need to buy a specific sort of small saucepan. Instead of competing with one another, various departments collaborate to create a tailored and consistent consumer experience.

Since initial periods in Artificial intelligence and machine learning, Amazon has made great strides. Aws now provided the firms machine-learning method to customers like NASA and NFL. It provided customized Innovative approaches to corporations and individuals by using AI developments and implementations in other parts of the corporation. Aws now offered the firms machine-learning method to customers like NASA and NFL. It provided customized Innovative approaches to corporations and individuals by using AI developments and implementations in other parts of the corporation. In a market where most businesses are burdened by bureaucracy and monopolies, it has been nice to watch Amazon knock through barriers to stimulate research and progress across the board. Other firms have wished to embrace a new company objective such as the flywheel whenever they want to flourish and remain on the top of the latest technologies.

Impacts on Organizations

AI technologies such as language processing, chatbots, and identification algorithms can help humans better understand their environment and behave accordingly. Amazon has been utilizing artificial intelligence (AI) technologies to adapt to or disrupt current ecosystems while simultaneously establishing and optimizing its crucial competitive advantages. AIs ability to improve existing productivity, enhance automation, knowledge, and conversion impacts, as well as identify, predict, and socialize with others, displays its full potential. As a consequence, AI has benefited Amazon, mostly in the corporate (financial, promotional, and bureaucratic) and operational sectors. By utilizing AI characteristics, organizations were able to boost the business value of the converted efforts. AI skills, it was also discovered, can only help businesses prosper if they can re-engineer their operations.

Workers time is freed up by automation of operations, allowing them to work on less monotonous and more engaging duties. As a result, meaningful work may increase and staffing levels because happy employees throughout respective employment become less inclined to leave. Technology has also helped amazon save on cash. Machine learning (AI) technology is helping businesses in reducing operating costs, increasing efficiency, increasing revenue, and increasing customer satisfaction. Computer vision (ML), learning techniques (DL), and advanced analytics are examples of Artificial intelligence. Automating and streamlining regular processes and operations increases production and operating excellence. AI also allows businesses to make quicker business choices focusing on functional technology outputs, avoiding errors and operator mistakes.

Benefits of an AI in Amazon

Since it was a precursor of AI and machine learning, Amazon still has an edge in adopting AI to improve operational efficiencies. It had begun to use AI to improve its customer experience, and it had put a lot of work into it internally. One of the most critical areas wherein Aws uses persistent AI is to help explain consumer search terms and why they seek a branded service. It was vital for an e-commerce firm to recognize whatever its consumers looked for and comprehend why they are exploring for an item to provide appropriate suggestions to them. Understanding can help the business offer more convenient solutions to its customers, and Amazon is committed to tackling the puzzle with AI technology.

Value Chain for Amazon

By supporting high distribution network strategies and utilizing AI technologies, Amazon has changed the retail business. The internet-path store is one of rapid expansion and ongoing innovation. The supplier base is shifting, and rivals are scrambling to stay up. Yet if the film accomplishes that aim or not according to time, its metamorphosis from an essential online bookstore to the commerce firms most fearsome power is astounding. Its dynamic and highly productive production process is among the driving elements behind the transition. Amazons continual attempts to provide goods to consumers in the quickest feasible time, placing intense strain on rival retail sector giants worldwide and transforming the way inventory control works, have been aided by AI.

The Internal and External Environment Forces on Amazon

Amazon Web Services has become the most potent brand inside the retail business because of artificial intelligence. When it comes to brand image and customer trust, this capability is mainly accountable for its fast development, especially during the early stages. It has also diversified the business strategy of this organization. Consumer devices, online shopping solutions, concrete block retail assistance, personal items, and technical support services, especially cloud-based services, are among the firms existing offerings. It features a wide range of activities that complement one another, making it a formidable competitor. Furthermore, the companys extraordinary potential for rapid technological innovation has aided its ability to adapt to changes, notably in terms of technology.

It has had the opportunity to expand into new markets. This program has created a presence in the marketplace before some major e-commerce companies, giving it a competitive advantage. The AI has given the corporation the opportunity to expand its cinder block activity. This external feature denotes the possibility of increased revenue from establishing a larger presence through more concrete block placements near existing Amazon Go locations. In addition, the corporation might take advantage of the opportunity to form new collaborations with other companies as a crucial outside instrument to extend its e-commerce sector geographical scope.

One of Amazons prime dangers is competing versus corporations is still a rivalry. The corporate management issues in the industries for home appliances, retailing, e-commerce, internet virtual goods dissemination, internet services, and some other technical support services are reflected in this price competition. Another danger as an external factor is imitation, a third-party component that can lower an e-commerce industrys brand image and worth. The AI would help mitigate the threats negative consequences by establishing better ways to proactively overcome risks within e-commerce, marketing, consumer devices, products, and leading global technology industries.

Conclusion

Depending on the prospects in the economic landscape, Amazons activities can keep growing. The company may expand by establishing e-commerce marketplaces associated with high developing nations. The company is still going strong and is one of the largest technology companies in the world. Amazon should keep expanding its company to better protect against its manufacturing hazards to address both internal and external concerns. It should also form new collaborations to broaden Amazons international influence and strengthen its business globally in the highly competitive environment and other strategic difficulties.

Introduction

Amazon Corporation is one of the leading competitors in the global e-commerce market segment. Founded in 1994, the corporation has grown very fast through the constant acquisition of businesses, introduction of superior products, and appreciation of emerging technologies to improve its operational model. The company has an effective research and development (R&D) department that examines the nature of modern technologies and their implications for online marketers. This R&D team is characterized by competent information technology (IT) specialists, programmers, marketers, application (app) developers, and engineers. The role of Radio-Frequency Identification (RFID) technology is a unique area that has captured the attention of this research team.

The ultimate goal is to develop a new retailing procedure that supports the changing needs of different stakeholders such as customers, online marketers, managers, logistical experts, wholesalers, and distributors. The managers at the company understand that technology is something capable of reducing operational costs and minimizing losses. Since technology makes it possible for corporations to collect information automatically, the company can acquire new insights and models that can be implemented to foster business performance. This paper begins by giving a detailed background of Amazon Corporation. The discussion highlights the major achievements and successes that have been recorded by the company within the past two decades. An evidence-based RFID technology implementation plan is suggested that can make a difference for the company and support its business goals.

Amazon Corporation

Organization Background

The 1990s presented numerous opportunities due to the increasing popularity of the World Wide Web (WWW) and the Internet. The decade was characterized by new innovations such as superior computers that transformed the manner in which people pursued their obligations (Salam, 2016). The Internet became a critical tool in different sectors and business operations. This development paved way for future innovations that are used today to promote business performance. During the same period, more companies emerged in every region across the world. A new process of marketing goods over the Internet became a reality. New companies emerged in the e-commerce sector. Amazon was one of the corporations that emerged during the decade.

Amazon is today one of the leading retailers that sells a wide range of products over the Internet (Salam, 2016, p. 2). This online retailer has an interesting background. The corporation was founded by a young entrepreneur named Jeff Bezos in the year 1994. As indicated earlier, the 1990s was a revolutionary period that presented numerous opportunities to upcoming entrepreneurs such as Bezos. The founders original idea focused on marketing specific products over the Internet such as compact discs, videos, books, and computer hardware. Together with his dedicated teammates, Bezos was able to create a website that became common among users within the first year.

Originally, the company had around 2,000 titles that were stored in a warehouse in Seattle. The business model was also designed in such a way that the company would collect books from different wholesalers and publishers and deliver them to its customers. Within a few months, the company was able to fill orders from many states and countries across the world (Salam, 2016). Although the company started as a bookstore selling its products online, it had managed to diversify its products by adding music, electronics, apparels, and DVDs within a period of 10 years. In 2005, the corporation acquired companies such as BookSurge, CreateSpace.com, and MobiPocket.com. Amazon Prime was introduced during the same year to ensure free shipping was done to support the needs of more students. By 2010, the company had acquired a number of small firms such as the Election 2008 store and AbeBooks.com. These achievements made it possible for the company to expand its operations and offer superior services to targeted customers.

The corporation is known for its unique culture that mostly focuses on the diverse needs of the customer. The workers are empowered and motivated using various incentives such as insurance covers, disability plans, medical support, and retirement benefits (Salam, 2016). Amazons mission is to become the most customer-centric organization whereby people can purchase their favorite products. In March 2017, the corporation had over 269,000 employees working in different regions and markets. The company has been focusing on the best strategies to maximize its goals and offer premium services to its global customers. Amazon attracts technical experts and professionals to support its innovative culture (Salam, 2016). The corporations engineers and programmers handle a wide range of duties in an attempt to build a successful e-commerce platform that can meet the diverse needs of its merchants, business partners, sellers, and customers.

Products, Services, and Markets

The company currently markets a wide range of services and products to its customers. Retail goods include software, baby products, groceries, kitchen items, apparel, hardware equipment, and healthcare products. In 2012, Amazon expanded its offerings to include gaming (Salam, 2016). Amazon Art is a platform that makes it possible for people to market their artworks. The companys positive performance has led to the introduction of new services such as video content, online books, and wireless solutions. The organization segments and targets its markets using exemplary services and products. However, customers must be in a position to shop online. Sixty percent of the corporations sales are recorded in North America. Its international market is composed of the United Kingdom, Germany, and Japan (Salam, 2016).

RFID Technologies

Amazon has been embracing new technologies that have the potential to foster business performance. The use of RFID (Radio-Frequency Identification) technology in the companys supply chain has led to maximized inventory visibility (Salam, 2016). Products and shipments can be tracked successfully using this technology. In 2014, it was reported that Amazon was using RFID technology to detect products taken from a given shelf by a customer (Salam, 2016). The use of this kind of technology makes it possible for the company to detect and track items and products in every outlet store. Some experts have gone further to indicate this revolutionary technology is being tested and tried to support various processes at the company. For instance, technology has become a powerful solution to make sure online inventory is managed and completed seamlessly.

Within the past year, Amazon has identified new procedures to incorporate the use of this new technology in its grocery stores. This model is expected to support its ambitious endeavor given the name Amazon Go (Salam, 2016). This revolutionary store will be designed in such a way that the customer will not have to check out with an attendant. The technology will be implemented to ensure the customer does not have to queue. The customer will only need to download and install the Amazon Go app on his or her phone and use it for shopping. Although this new venture appears to be complex, the outstanding observation is that it might be founded on the power of RFID technology. The company has indicated that the know-how adopted for the Amazon Go store is given the name Just Walk Out. However, analysts in computer technology have indicated that the new model must be characterized by the unique features associated with RFID. This is the case because the proposed technology must be characterized by computer learning processes, sensor fusion, and algorithms to make the retailing process possible (Pradham, Chai, Sundaresan, Rangarajan, & Qui, 2017).

This discussion reveals that many retailers across the globe are working hard to identify new practices and procedures that can be adopted to ensure RFID technology is adopted to deal with the major challenges facing their retailing strategies. Pradham et al. (2017) believe strongly that the use of RFID technology can ensure inventories are managed in a faultless manner. Amazon is keen to consider the benefits of this technology and develop superior models that can maximize sales without compromising the quality of services available to its global customers. This discussion, therefore, shows that RFID is a technology that is in its infancy at Amazon Corporation. It is also notable that many companies have not managed to realize the full benefits of revolutionary innovation. The good news is that the future will be brighter as more corporations continue to undertake new research studies. Amazon remains one of the leading corporations that can implement and benefit from the use of this revolutionary technology. When the idea is studied and merged with various business operations, the corporation can maximize its sales, support the changing needs of its customers, and become a leading player in the e-commerce industry.

Outline of the Proposed Plan

Amazon can embrace the power of RFID technology in order to become more competitive in the global online marketing sector. The deployment of this technology can result in enhanced visibility throughout the supply chain process and efficiency whenever tracking various products (Haddud, Dugger, & Lee, 2015). The Amazon Go example can be studied as a prototype for the implementation of this new technology. According to experts, the innovation is capable of empowering more customers since they will not need an attendant. Gupta and Margam (2016) believe strongly that technology is capable of reducing operational costs and minimizing losses.

When technology is adopted to support different processes, the level of human intervention is reduced significantly. This move can be considered by a company that plans to minimize its expenses. It is worth noting that the use of modern innovations can increase the quantity and quality of information that is collected automatically (Menosky, 2017). As marketing management shifts to a new paradigm characterized by research, the proposed RFID technology will equip Amazon Corporation with new insights and concepts that can be studied carefully to foster business performance. The outline below proposes a framework that can be used to support the execution and use of RFID at the corporation.

The first step that can be adapted to support the process is projected scoping. The leaders at Amazon should begin by outlining the benefits, disadvantages, and issues arising from the use of RFID technology. This knowledge will ensure the objectives of the project are clearly defined. It is during this phase when different experts and stakeholders should present their insights and considerations that can support the agenda (Haddud et al., 2015). The second stage should be to analyze the current nature of operations and the utilization of RFID at the company. This process should begin analyzing the existing system and how it supports the companys business aims (Ting, Tsang, & Tse, 2013). The developers and leaders should consider how the use of RFID technology in different stores has influenced performance. They should use appropriate analytical tools to examine the companys ability to implement technology and emerging benefits.

The third stage is designing the right system. This means that the right software and hardware will be selected. This phase is complex since it requires the expertise, know-how, and contributions of competent programmers and engineers (Menosky, 2017). When executed in a proper manner, this process is what dictates the success of the implemented technology. Companies that want to implement and use a given technology should recruit the right people, empower them, and provide adequate resources to support their goals.

The fourth step is testing the prototype (Coustasse, Cunningham, Deslich, Willson, & Meadows, 2015). Processes such as system debugging and adaptation should be executed during this stage. The main goal during this stage is to ensure the intended technology does not malfunction. With effective testing, the team identifies specific weaknesses that might affect its performance. Menosky (2017) goes further to acknowledge that testing should be an ongoing process since new improvements and design changes are usually common after a given technology has been adopted by a corporation.

The fifth stage should be in the implementation process. This process is done to deploy the intended RFID technology. Training or empowerment is critical to support this stage. The last (sixth) stage is known as continuous improvement. This stage is necessary because it will ensure there is constant monitoring of the systems efficiency. Feedbacks should be collected periodically from different employees and users (Menosky, 2017). The acquired information will ensure the new technology becomes an integral part of Amazons business model.

Detailed Outline of the RFID Implementation Plan

Amazon Incorporation has remained a leader in online-based marketing. The company has succeeded in a number of areas such as the delivery of consumer goods in a timely manner, supply chain, and management. The use of RFID has mainly been associated with the corporations supply chain. However, the benefits of technology explain why it has the potential to transform Amazons business process. This means that the company can utilize the technology to track products, improve service delivery, and make better marketing decisions based on consumer behaviors (Ting et al., 2013). The discussion presented below gives a comprehensive plan that can guide Amazon to implement the use of RFID technology successfully within the next three years.

Project Scoping

This is the first stage for implementing RFID technology in any given business organization. During this phase, a competent team characterized by technological experts should be formed. That being the case, the leaders at Amazon Corporation can create a group characterized by competent professionals to study and present useful insights about the nature of RFID technology. The established team at the organization can begin by outlining the unique benefits and limitations associated with the proposed RFID system (Haddud et al., 2015).

This understanding will make it easier for the team to come up with the specific objectives that can act as guidelines throughout the implementation process. The group should go a step further to identify every unrealistic outcome that can affect the success or effectiveness of the technology (Menosky, 2017). The individuals in the scoping process should devise meaningful and evidence-based strategies to deal with the weaknesses associated with RFID. Such approaches should be analyzed and experimented in an attempt to ensure every outlined objective is realized in a timely manner (Owunwanne, 2016). The selected RFID system for each operation should be able to deliver desirable outcomes. Both long-term and short-term must be identified during this stage. The timeline for the stage is two months. This process is relevant because it will ensure the team comes up with a desirable timetable to be followed throughout the implementation process.

Analyzing the Current System

Amazon has been using RFID technology as part of its supply chain management strategy (Coustasse et al., 2015). The technology has supported a wide range of operations in different stores. It has also been experimented to support the Amazon Go stores. These developments can be used to explain why Amazon stands a chance to benefit from the power of modern technologies. However, the desire to expand the use of technology should be supported using evidence-based information. The leaders will have to analyze the unique issues associated with the organizations current system. This goal will be achieved by collecting quality information and analyzing it adequately (Owunwanne, 2016). For instance, issues such as efficiency, improvements, and deficiencies within the existing system should be captured during this stage. The process should be undertaken within six months. This knowledge will ensure the leaders at Amazon focus on the right objectives and approaches to implement the intended RFID technology.

System Design

The third stage will be considered to inform the managers at Amazon about the major processes that can be embraced to deal with the existing gaps. During the stage, the team plans to implement the technology that can identify the right design for the proposed RFID technology. This knowledge will be informed by the corporations requirements and business needs. For instance, the company has to focus on new regions and markets across the globe. The right technology should, therefore, meet this critical business objective (Menosky, 2017). Similarly, the technology should be able to address most of the predicaments affecting the company.

With competition becoming a reality in the e-commerce industry, Amazon Corporation should identify the most appropriate technologies that alter the playing ground and eventually become successful. Areas for improvement should also be considered during this stage (Owunwanne, 2016). The most appropriate design will therefore dictate the hardware, software, and data that should be captured by the RFID technology. The technologys ability to interpret data or information should be critical towards guiding the process (Pradham et al., 2017). The selected software and hardware must be tested during this stage. This approach will ensure the system is capable of handling data and presenting accurate information. The stage is expected to take 12 months.

Prototype Testing

The third stage is critical because it delivers a system that can produce the intended results. However, the team cannot go-ahead to use it without testing it (Lai & Cheng, 2014). Depending on the role of the targeted RFID system, the testing process will be used to capture signals from the selected devices. Issues such as duplications, tag collisions, and confusions should be monitored during the phase (Cheng & Prabhu, 2013). The technical staff at Amazon Corporation will be required to identify areas that should be improved. The simulation process will be characterized by debugging and adaptation of the system. The adaptation procedure is necessary because it will ensure the implemented RFID system is capable of delivering desirable goals or outcomes. Six months will be adequate for this process.

Implementation

After the RFID technology has been tested successfully, the team will go further to install the necessary software and hardware systems (Lai & Cheng, 2014). During this stage, training and change can be critical in order to deliver tangible results. The existing RFID system in the companys supply chain can be improved during this stage. The tested system should then be configured in such a way that it supports the intended operations in the organization. The managers and leaders at the company should be willing to be involved throughout this phase (Cheng & Prabhu, 2013). This move will be essential since the company has many employees whose contributions might be needed during the stage. Issues such as change management and organizational culture must be considered during the phase (Menosky, 2017). This understanding is informed by the fact that many individuals will tend to resist new changes especially when they affect their comfort zones (Coustasse et al., 2015). This is the stage whereby appropriate concepts and organizational theories must be taken seriously. This process should take six months. The use of this approach will ensure different workers are empowered, guided, and trained to support the implementation process. This evidence-based strategy will reduce conflicts, omissions, errors, and inefficiencies.

Continuous Improvement

This is the last stage of the RFID technology implementation process. The implemented system should be monitored and analyzed continuously in order to identify various gaps that can affect its effectiveness. Feedbacks from different stakeholders can be helpful in improving the functionality of the system. The success of the implanted RFID system should be tracked during this phase (Cheng & Prabhu, 2013). Areas that can be improved will be identified during this stage. These steps can therefore make it possible for Amazon to implement RFID technology and remain relevant in the online retailing sector.

Supporting the Implementation Process Using Theories and Change Models

Different theories have the potential to support and sustain the proposed RFID technology implementation process at Amazon Corporation. For instance, the Theory of Diffusion has been embraced by scholars in the world of innovation. According to the theory, new technological developments can result in better performance and make it possible for companies to achieve their goals much faster. The theory asserts that leaders or change agents must be willing to be part of every implementation stage or process. They should bring on board competent persons, support their needs, and create the best environment to ensure the targeted stage is implemented successfully (Cheng & Prabhu, 2013). When this idea or theory is considered during the implementation period, it will be possible for the involved players to focus on every stage or phase. The practice will ensure the targeted change is sustainable and capable of supporting the corporations e-commerce business agenda.

Kurt Lewins model of change is another powerful framework that is widely used by companies that want to implement or adopt the use of new technologies. This model is applied in different situations because it creates room for new processes by encouraging every follower to support the change (Coustasse et al., 2015). The model is simple, manageable, and capable of delivering desired results within the shortest time possible. The first stage is known as refreezing. At Amazon, the workers, engineers, logistical operators, and RFID technology developers will be informed about the major changes experienced in different parts of the world. The concept of RFID technology and its potential will then be discussed by the stakeholders. The actors will be aware of the benefits and be ready to learn more about technology.

The second phase of the model is implementing the intended change. This step will guide the major implementation phases described below. This means that the major players will acquire the right resources, prepare different workers to adopt the technology, and address emerging challenges. The employees can be trained to understand how technology can be utilized to add value to the company. Kurt Lewins change theory can ensure the right activities and procedures are undertaken throughout the implementation process. This analysis shows conclusively that the second stage of Lewins model will form the backbone of the RFID implementation plan. The major actions such as system designing, prototype testing, and implementation will be guided by the second phase of the theory. The role of the change process is to ensure the level of resistance is reduced (Cheng & Prabhu, 2013). The workers at the corporation will also be updated about the unique benefits of the change and how it will transform the corporations performance.

The proposed RFID technology will be implemented successfully at the company and become part of its business model. This means that the third stage of freezing will be considered to ensure the implemented technology is supported by every stakeholder. The employees will be willing to utilize the technology to deliver the intended services and products to customers. It is during this final stage when emerging issues can be identified, analyzed, and resolved (Coustasse et al., 2015). From the above implementation plan, it should be observed that the final stage (continuous improvement) should be an ongoing process. The team must address gaps and weaknesses that might affect the effectiveness of RFID technology (Menosky, 2017). Every stakeholder should be included during the phase to ensure emerging concerns are identified. These practices will present appositive improvements to ensure various organizational functions and operations are supported using the new technology.

The collaboration of different experts and professionals can make sure the technology is supported and redesigned depending on the changes experienced in the market. The ultimate goal should be to use various models or theories to deliver a meaningful change characterized by the use of RFID technology (Coustasse et al., 2015). When this is done in a professional manner, the company will be in a position to improve its business model and deliver its products to more customers in a convenient manner.

The organizational theory explains how project managers must be willing to lead their followers, make timely decisions, solve emerging concerns, and create the best culture to deliver meaningful results. Amazon Corporation has always been associated with one of the best organizational cultures whereby employees are trained and empowered to support various business processes. This theory will be utilized by the leaders of the project to ensure every person is ready to achieve positive outcomes (Menosky, 2017). When the implementers of the RFID technology are guided and empowered, they will be willing to work hard and focus on the best results. These practices will make it possible for Amazon Corporation to utilize RFID technology in most of its operations.

Conclusion

Amazon Corporation utilizes a powerful business model that makes it competitive in the e-commerce industry. The company has identified new markets and products that can be delivered to more customers using online marketing. The organization has numerous stores and outlets that support its business aims. The presented plan can ensure the company implements RFID technology successfully in its departments, logistical processes, stores, and operations. Amazons market research can be supported by using this development. The technology can be used to collect data and information that can predict the purchasing behaviors of its customers. These gains can then be tapped to develop superior business models that resonate with the emerging needs of its customers. Consequently, the company will become competitive and remain relevant in the global e-commerce industry.

References

Cheng, C., & Prabhu, V. (2013). An approach for research and training in enterprise information system with RFID technology. Journal of Intelligent Manufacturing, 24(3), 527-540. Web.

Coustasse, A., Cunningham, B., Deslich, S., Willson, E., & Meadows, P. (2015). Benefits and barriers of implementation and utilization of radio-frequency identifcation (RFID) systems in transfusion medicine. Perspectives in Health Management Information, 12(1), 1-13. Web.

Gupta, P., & Margam, M. (2016). RFID technology in libraries: A review of literature of Indian perspective. Journal of Library and Information Technology, 37(1), 1-12. Web.

Haddud, A., Dugger, J., & Lee, H. (2015). Lee manufacturing control, asset tracking, and asset maintenance: Assessing the impact of RFID technology adoption. Journal of International Technology and Information Management, 24(2), 35-54. Web.

Lai, Y., & Cheng, J. (2014). A cloud-storage RFID location tracking system. IEEE Transactions on Magentics, 50(1), 1-16. Web.

Menosky, A. (2017). Walk out technology: The need to amend section 5 of the Federal Trade Commission Act to protect and promote corporate transparency. Journal of Technology Law & Policy, 17, 35-52. Web.

Owunwanne, D. (2016). Radio frequency identification (RFID) technology: Gaining a competitive value through cloud computing. International Journal of Management & Information Systems, 20(2), 1-17. Web.

Pradham, S., Chai, E., Sundaresan, K., Rangarajan, S., & Qui, L. (2017). Konark: A RFID based system for enhancing in-store shopping experience. Web.

Salam, M. (2016). Devising a business model of Amazons 1995-2004 journey. Arabian Journal of Business and Management Review, 6(3), 1-4. Web.

Ting, S., Tsang, A., & Tse, Y. (2013). A framework for the implementation of RFID systems. International Journal of Engineering Business Management, 5(9), 1-16. Web.

Amazon is one of the worlds most extensive and expensive companies. In 2020, Forbes ranked it 4th in the list of the most valuable brands after Apple, Google, and Microsoft, with a valuation of $135.4 billion (Swant, n.d.). In one year, the company was able to double its performance. In 2021, Kantar Group placed Amazon first in the top 100 ratings, valuing the company at $254.2 billion (Barker, 2021). All this testifies to the excellent approach of top managers to their work.

Vision and Mission

Amazon views vision as the guide for the companys development and cultivation of specific ideas. Its vision has two parts:

1. The central ideology, which reflects the purpose and values of the company;
2. An envisioned future that includes goals and objectives (Amazon, n.d.).

Amazons vision is customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking (Amazon, n.d., para. 1). This vision was written during the companys founding and has guided Amazon to this day. Its mission statement emphasizes the lowest prices, best selection, and experience (Cuofano, 2022). The company wants to provide its customers with the maximum benefit in terms of price and variety of goods.

The reduced prices can be attained by a low operational cost. For this reason, the entire logistics process is essential to attain this goal. Second, Amazon offers a broad choice for all its clients (Cuofano, 2022). It is achieved by the company offering a wide range of products on its website. As a result, users want to use the companys website when they shop online. Third, Amazons mission emphasizes that transactions and operations performed by the user must be convenient (Amazon, n.d.). Thus, comfort becomes an integral element of all services offered by the corporation. Amazons mission emphasizes three essential elements: low prices, the best selection, and maximum comfort.

It can be said that the mission and vision of the company are too idealized and challenging to implement in practice. They are formulated more from a marketing point of view than for actual implementation. In fact, low prices, high quality, and convenience might be hard to combine and require much effort (Sharma, 2021). Nevertheless, Amazon is still trying to offer the best prices, which allows it to have no branches and well-established supply chains.

SWOT Analysis

Strengths

Amazon is growing faster than the rest of the U.S. e-commerce firms. The company manages to earn high profits from online sales. The success lies in the strategy of low prices, merchandising solid, and third-party sellers on the platform. Amazon has perfected its delivery network with the launch of Amazon Air (bulk carrier), Prime Now, and Amazon Logistics. Amazon uses about 200,000 Kiva robots to search, collect and distribute orders (Edwards, 2020). Robots significantly simplify work in difficult conditions and save time.

Weaknesses

Amazons key competitors, Walmart, Barnes & Noble, eBay, Ne, and Oyster, challenge Amazon by copying the e-commerce business model. For example, in 2020, Walmart created a Walmart Plus subscription following Amazon Prime (which also offers users free shipping), while eBay is implementing a low-price strategy. Therefore, customers can easily choose another marketplace where prices are even lower. Despite the advantages, the company has the lowest margins in the e-commerce segment (Sharma, 2021). This is due to the high advertising costs, promotional products, and logistics. In the second quarter of 2021, Amazon announced online sales revenue of $53.2 billion, which is below the market forecast of $57 billion (Sharma, 2021). The fact that the company did not make a decent profit points to room for improvement.

Opportunities

Considering the companys capabilities, it is worth saying that Amazon has a good chance of becoming a global monopolist. Almost twenty countries worldwide have their own Amazon marketplace, and the company provides delivery services in over 100 countries. A promising industry is a food, which is the second largest category in American retail. The numbers could rise due to lockdowns during the pandemic, and Amazon will have a great chance to capture a niche and increase its profits through online sales of food products and delivery.

Threats

Among the threats, the most significant is that third-party sellers are selling fake products on Amazon. The company is under pressure from the government, which demands responsibility for the damage caused by counterfeit goods (Bright et al., 2019). In 2020, a U.S. court ruled that Amazon was liable for personal injury and property damage from an explosion caused by a counterfeit battery purchased from the marketplace (Greene, 2020). In such a way, the deterioration of the companys image might become one of the significant threats to the company in the future.

Warehouse workers often go on strike demanding health protection and higher pay for hazardous work. For example, in 2019, employees at an Amazon warehouse in the U.S. said they were fired in retaliation for protesting inadequate protection against COVID-19 (Business & Human Rights Resource Centre, 2020). In 2021, African-American Charlotte Newman, who worked at Amazon as a manager, filed a lawsuit against the company for sexual harassment by the director (Collins, 2021). All these facts indicate that Amazon should consider the best conditions for its employees.

5 Step Planning Process

The planning process consists of several phases critical for the desired outcome. The first stage is to set the foundation for the whole work. Since Amazon is already an established corporation, its development path is also provided. It can be recommended to improve recruitment strategy to enhance working conditions and avoid the threats described in SWOT.

The second stage should contribute to the development of the goals and objectives of the company. It is recommended to base these goals and objectives on SWOT analysis. For example, it is possible to eradicate low-quality products in the marketplace without increasing prices.

The third stage includes forming strategies to achieve the goals set earlier. To provide Amazon with only safe products, sellers must undergo specific product verification and testing by Amazon personnel. It can be recommended to work only with verified and trusted partners.

The fourth stage is the implementation of the strategy in the company. This phase is driven by strategic management and may require establishing a new business structure. The recommendation implies aligning the new strategy with the current issues to resolve them.

The fifth stage is to observe the work of the new strategy and correct unwanted deviations. It can be recommended to record changes as a way to control all alterations.

In conclusion, implementing a strategy to eliminate harmful products is possible. To do this, first of all, creating a unique body within the company will be necessary. Its responsibilities should include screening all new sellers who want to list an item on Amazon. This procedure will help to strengthen the image of the company significantly.

References

Amazon. (n.d.). Who we are. Web.

Barker, M. (2021). Amazon retains crown as worlds most valuable brand. MarketingWeek. Web.

Bright, D. Cortes, A. Hartmann. E. Parboteeah, K. Pierce, J. Reece, M. Shah, A. Terjesen, S. Weiss, J. White, M. Gardner, D. Lambert, J. Leduc, L. Leopold, J. Muldoon, J. and ORourke, J. (2019). Principles of management. Rice University.

Business & Human Rights Resource Centre. (2020). Amazon may have violated labor laws by firing worker involved in protest, New York attorney general says; incl. company response. Web.

Collins, T. (2021). Black Amazon manager sues the tech giant, execs alleging discrimination and harassment. USA Today. Web.

Cuofano, G. (2022). Amazon mission statement and vision statement in a nutshell. FourWeekMBA. Web.

Edwards, D. (2020). Amazon now has 200,000 robots working in its warehouses. Robotics and Automation. Web.

Greene, J. (2020). Burning laptops and flooded homes: Courts hold Amazon liable for faulty products. The Washington Post. Web.

Swant, M. (n.d.). The worlds most valuable brands. Forbes. Web.

Sharma, A. (2021). Amazon net profit doubles on strong online shopping. The National. Web.