Amazon Cycles of Creativity

Question: Discuss about the Amazon Cycles of Creativity. Answer: Introduction: Amazon was incorporated in 1994 as an American e-commerce company, by Jeff Bezos. It is the largest online retailer in the world according to its sales and capital. The company earned an income of US$135.98 billion in the financial year of 2016 and on its peak days it sold more than 306 items in one second. The motive of selecting Amazon for this report is because the company has beat all of his completion in the market Management and become worlds largest online retailer with a high level of customer satisfaction. Amazon operates in online shopping and cloud computing industry. Along with their online retailing, the company provides several other internet-based services to its customers as well. Other services of Amazon include Amazon Prime, online book store, studio movie, app store, cloud drive and web services. Amazon keeps innovating their products and services according to their customer's requirements. The recent project of Amazon is Alexa, an artificial intelligence system that could connect to mobile, house or other electronic devices (Teece 2010). According to Mangalindan (2012), Amazon key strategy focused on cost leadership, as compared to other off-line retailers. The companys enormous warehousing services and processing abilities, providing them cost advantages. The company is also focused on customer satisfaction and Bezos has implemented the consumer focus structure throughout the enterprise. The company uses these facilities to provide competitive pricing to its customers and other facilities such as one-day delivery, easy return, fast purchase process, and customer support. According to Forbes, Amazon is one of the worlds top three most innovative companies, with a market cap of US$427 billion and this strategy will help them sustain their growth in the future. Amazons business model focuses on enhancing growth by adopting a lower cost structure, as discussed by Bucherer (2011). The company provides lower cost products with high-quality services. Following is the criteria of Amazons business model: In order for achieving growth, the company focused on creating a lower cost structure in their operations. The enormous warehousing facilities and online operations help the organisation in maintain low cost throughout their operations. The low-cost structure allows the company to provide their products and services at lower charges, as compared to its competitors. The process of ordering or using online services is significantly easier, helping in achieving customers satisfaction. Higher customer satisfaction increases the traffic on Amazons website, eventually increasing their sales. High sales attract a large number of sellers to list their products on Amazons website. It helps in providing their customers large selection and convenience of faster delivery, which eventually leads to customer satisfaction management. Amazon operates in more than 16 countries, and they might start selling in Australian as well. Before entering in Australian online retail market, the company required to assess their culture, administrative, geographic and economic factors. As discussed by Johnston (2017), Australian online retail market is a booming industry with more than 80 percent of population spending in online retailing, but around 64 percent of customers returned their purchases. Amazon required formulating faster delivery operations with easy return policy to capture Australian online retail market. Uber Technology incorporation is an American corporation operating in transportation and delivery services. The companies headquarter is situated in San Francisco, California. Uber provides its services in more than 632 cities globally. The organisation has revenue of US$6.5 billion in 2016 financial year. The purpose of choosing Uber is that company has changed the taxi industry without any significant investment. The organisation has created a monopoly in the transportation industry and worth more than US$63 billion. Uber allows customers to book a taxi through their mobile application. The drivers of Uber cabs have their own vehicles, eventually reducing the investment cost of Uber. The company has millions of vehicles to operate, for which they did not pay millions of dollars. Uber does not require maintaining full-time drivers or vehicles which reduce their costs. Uber operates in the low competitive market. There are other taxi drivers and organisation, but they did not provide customer services like Uber (Cramer and Krueger 2016). The customs choose Uber over taxi because they provide easy accessibility and facility through their application such as convenient booking, 24*7 service, and no cash transactions. According to Jonathan (2015), Uber hire world-class programmers and talented mathematicians that help in maintaining policies for the company by analysing the data. The company constantly update their policies to attract a high number of customers such as discounts, guaranteed prices, simplicity in the booking process and motive drivers to work longer. The innovative strategy helps Uber in gaining a competitive advantage and assist in sustainable future growth. Ubers business model focuses on maintaining high standards of services management at lower prices. Following are its essential parts (Cohen and Kietzmann 2014): The drivers of Uber have their personal cars. Uber also provide the facility of rented cars to its drivers. The company creates coordination between them to provide high scale and distributed transportation platform. The mobile application provides various facilities such as easy booking, cab tracking, calculating estimated prices and no-cash payment option. Customers can write their ride experience review directly inside the application, and they can rate drivers too. The company takes around 20 to 30 percent cut from all booking. The market researcher of Uber analyse the data to reduce the waiting time for booking and increase the drive time. The company embraces marketing as a tool to increase their market share. This approach helps them gain a competitive advantage over its competitors. The business model of Uber assists them enhancing their operations worldwide. According to the research of Cannon and Summers (2014), the company is not affected by economic, geographic, and administrative and cultural factors of different countries since the company did not invest in vehicles. Uber provides a facility through their application and their drivers use their personal vehicles. The business approach of Uber increases their operations in more than 632 cities and sustained their future growth. 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Retrieved from https://www.gizmodo.com.au/2017/08/yet-another-reason-amazon-australia-is-going-to-be-huge/ Jonathan, T., 2015. Ubers Use OF Data As A Competitive Advantage. Digital Innovation and Transformation. Retrieved from https://digit.hbs.org/submission/ubers-use-of-data-as-a-competitive-advantage/ Mangalindan, J., 2012. Amazons recommendation secret.CNN Money https://tech. fortune. cnn. com/2012/07/30/amazon-5. Teece, D.J., 2010. Business models, business strategy and innovation.Long range planning,43(2), pp.172-194.