Management
Question 1
The firm uses the mouse to the house method whereby it tries to sell every product to everyone in the entire globe. Given what we have seen on the current operations strategy, I see a future whereby amazon will be having planes besides the already available trucks to boost distribution. This is primarily because amazon is fast expanding, and the scale of operations is becoming big. It will therefore, need to be able to deliver commodities fast and efficiently all over the world. With the drone technology, amazon will be able to deliver some packages even within few minutes after order placement. However, the octocopters carriage capacity may be limiting, as bulky commodities are not likely to be deliverable using them. Currently, it is using trucks because the distributions centers are located near the customers (Amazon's Jeff Bezos).
I envision an operation strategy whereby the firm will be able to deliver any product ranging from vegetables to electronics to anyone and everywhere in the world. The firm will also be able to deliver products to customers on the same day an order is placed, and this is possible with the kind of mechanization they are constantly adopting. Given the capacity of its website computing device, the firm may also venture into providing cloud computing services to millions of firms as well as government agencies. The firm will be able to have distribution centers in almost all continents and in the whole of United States. With the firm currently venturing into the film business, it will be able to provide movies that are customer based, which will guarantee maximum revenue.
Question 2
Amazon has adopted the scientific approach to management and this has given them a big competitive advantage. Scientific management was advance my Frederic Taylor and through its various principles, it shows how the application of scientific method in the management of workers could optimize productivity. This approach mainly calls for task optimization and simplification such that the workers can perform their tasks in the best way. The impact of scientific management on Amazon Company is that it has helped it in being a competitive firm. The application of scientific method such as massive website platform has enabled the firm efficiently practice e-commerce and coordinate its operations. The firm is currently developing a drone delivery system through which it will be able to deliver its product within the same day of ordering (Jeff Bezos Revealed).
There are several principles of scientific management that Amazon has adopted. First is the principle of replacing the rule-of-thumb working approaches based on scientific study of tasks. When amazon was founded, it used to deliver its products through the post office, today the firm has numerous distribution center and distribution track. This, therefore, enhance its operations through fast and efficient delivery. Amazon through its secret labs is also invested in developing state of the art modern equipment that will enable it to venture into vast areas of business operations. The firm has also developed a film producing strategy whereby they are producing films based on the taste and suggestion of their customers rather than basing it on the suggestion of few production officers.
Jeff Bezos has also adopted the concept of division of labor of which Adam smith is the main proponent. This has assisted the firm in employing mechanization and simplification of tasks. Most of the stages of handling products have been mechanized. The other concept of scientific management that has been adopted by the firm is the principle of coordinating with workers to ensure the scientifically developed methods are being followed within the firm. Amazon has trained its workers through the handling of received packages, storage, packaging and dispatch process. Packers are trained to handle their tasks efficiently.
Question 3
Amazon has a lot of competitive advantages. First is their adoption of computer technology, which has enhanced the efficiency of its operations. It has the capacity of receiving the maximum possible number of merchandise orders and processing them. The firm also has huge fulfillment centers situated strategically around the globe that enables it to serve millions of customers. This gives it a huge market share, as compared to its competitors. The firm has the largest database compared to its competitions and even provides cloud services to government agencies like the Central Intelligence Agency. The other competitive advantage is that Amazon literally delivers any product to millions of consumers and this ensures very high sales revenue. Unlike it competitors who do not sell everything. Amazon has also enabled producers of other product that they are not retailing to sell through their platform. This maximizes their customer satisfaction and sales revenues through the expanded product line and high-value sales (Inside Amazon).
Lastly, Amazon focuses on secrecy and ensures that its future roadmap is known. The business world is very dynamic, and amazon has invested in technology that will be able to steer its operations more efficiently in the future. In addition, the firm has been able to manage the competition posed by other firms, and some cases having to buy other firms so that it can stay ahead of the competition. Finally, amazon has the competitive advantage of ensuring that its operations are customer-based. They provide a variety of products that meet the needs of millions of customers. This is evident as in the case where they have been able to produce a film based on their customer’s views. They also tend to focus on delivering products within very short durations.
Works Cited
Amazon's Jeff Bezos Unveils 'Octocopter' Drone Delivery Plan on 60 Minutes [Video file]. (2016). Retrieved from https://www.youtube.com/watch?v=AMqHD2F5Xec
Inside Amazon: Secrets of an Online Mega-Giant [Video file]. (2016). Retrieved from https://www.youtube.com/watch?v=zknLfU7GJIw
Jeff Bezos Revealed: Building Amazon One Box at a Time [Video file]. (2016). Retrieved from https://www.youtube.com/watch?v=tfAhTtBlb2Q
