GMS 200 Amazon Case Study PDF

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GMS 200 Assignment 1: Amazon.com, One Store to Rule Them All Mehran Dehghan

Q.1) In what ways does Bezos’s decision to develop and deliver the Kindle and Kindle Fire, and Fire TV lines show systematic and intuitive thinking? Jeff Bezos’s decision to develop and deliver the Kindle, Kindle Fire and Fire TV lines show exceeding signs of modern systematic and intuitive thinking. Bezos’s strong judgement brought him to explore the shift in culture from books to digital books which led him to create the Kindle and Kindle Fire, giving him an advantage over his competitors. This strategy was made in order to keep amazon customers interested and connected with the Amazon site. Bezos somehow transformed the publishing industry and had customers coming back for more Kindle content. Bezos saw the direction that the book industry can take in terms of innovation and design and decided to capitalize on it by creating a market for it and developing it. Bezos showed his intuitive thinking by making the bold decision to count on his innovations when competing head to head with Apple tv with his company’s own Fire Tv. Fire Tv enabled Amazon Prime members to stream and watch their favourite movies and television shows for free which increased the value of the Amazon Prime membership drastically. Bezos’s systematic thinking allowed him to think of efficient ways to improve his products along with creating profound ones. A great example of this is the Kindle e-books offering more features compared to hardcover books which makes them more interesting to read.

Q.2) How do you describe the competitive risk in Amazon's environment as other retailers, including Walmart and Apple, strengthen their online offerings? The competitive risk in Amazon’s environment with other retailers such as Walmart and Apple, strengthening their online offerings is very profound and broad. Retailers like Walmart and Apple are starting to strengthen their online offerings in order to compete with Amazon and other big-name retailers as well. Apple is currently in competition with Amazon involving the ‘Apple TV’ and Amazons ‘Fire TV’ and their music streaming platform ‘Itunes’ going up against Amazons ‘Amazon Music’. Walmart, on the other hand, is competing with Amazon by

making it easier to buy online through their website as well as offering a profound shipment service for the wide variety of products they have in store. Although there seems to be a lot of risk in terms of competition for Amazon, Amazon still has the biggest advantage in the competition because they are the number one online shopping site and have developed a shopping culture through the years which makes them a household name. Not only that, they sell all types of products ranging from expensive jewellery to TV’s which makes them more versatile than other retailers who only sell specific products rather than a wide spectrum of products. Amazons’ innovative site and products make it very difficult to compete with especially as an online retailer. The only competitive risk Amazon has is with certain companies that sell furniture, smart speakers, and new products on the market because these risks drive Amazon to continue developing and improving its products.

Q.3) Problem Solving Amazon is continuously looking for new markets to exploit. As Bezos addresses the strategic opportunity of streaming video, he calls on you for advice on gaining more customers from the younger generations. Amazon's presence and technology are well established, but Bezos sees a lot of untapped potential in this market. But what decision error and traps might cause him to make the wrong decisions regarding Amazon's future moves in this regard, and why? What can he do to best avoid these mistakes? The type of decision errors and traps that may cause Bezos to make the wrong decision regarding Amazon’s future moves is that there is lots of competition in terms of video streaming on the internet which makes it already very difficult to deliver a streaming service that come with a fee when there are certain platforms that offer it for free like Youtube for example. There are also many legal barriers they have to take into consideration specifically in terms of digital copyrights. The best way he can avoid these mistakes is to properly analyze the copyright guidelines when considering expanding into that market as well as offer a free alternative for customers who want to stream through Amazon's services but do not want to pay a fee....