There are several companies a student might select for this assignment. One of the most interesting is Amazon, a company that has very effectively used network effects and data analytics to grow and capture market share over the past decade.
It competes in two areas, responsiveness and cost, simultaneously. Due to its storefronts existing in the cloud, it avoids many of the costs that bricks and mortar stores incur while managing to serve a national market effectively due to a superb logistics networks. Although in one sense it does not differentiate itself in terms of products, as the items it sells are normally available from other retailers, its Amazon Prime membership tends to facilitate customer loyalty, and the sheer breadth of its offerings makes it a go-to place for many shoppers. In terms of responsiveness, it offers a simple interface and sophisticated search options for shoppers, and its logistics networks ensure ultra-fast delivery.
Of the OM decisions, perhaps the most important for Amazon are logistical, encompassing supply chains, inventory, location, and scheduling. Amazon saves money by having numerous third-party sellers for which it acts as a platform, meaning that it does not deal with the physical inventory for those sellers at all. For the products that Amazon itself sells, it has an extensive regional warehouse network, has invested heavily in logistics companies, and uses data analytics extensively to predict demand and ensure it has the capability for same-day (or in some markets, one-hour) delivery.
Amazon also uses data analytics to maximize the effectiveness of human resources by analyzing multiple metrics to streamline its processes.
Wednesday, October 29, 2014
Firms can achieve overall, organization-wide competitive advantage through the following strategies: Competing on Differentiation Competing on Low Cost Competing on Response Pick a company you are familiar with and identify which of the above strategies it has selected. Based on this strategy, discuss how the company may have implemented each of the ten strategic OM decisions to achieve competitive advantage. (Company suggestions if needed: Walmart or Apple Inc.)
Subscribe to:
Post Comments (Atom)
Why is the fact that the Americans are helping the Russians important?
In the late author Tom Clancy’s first novel, The Hunt for Red October, the assistance rendered to the Russians by the United States is impor...
-
There are a plethora of rules that Jonas and the other citizens must follow. Again, page numbers will vary given the edition of the book tha...
-
The poem contrasts the nighttime, imaginative world of a child with his daytime, prosaic world. In the first stanza, the child, on going to ...
-
The given two points of the exponential function are (2,24) and (3,144). To determine the exponential function y=ab^x plug-in the given x an...
-
The play Duchess of Malfi is named after the character and real life historical tragic figure of Duchess of Malfi who was the regent of the ...
-
The only example of simile in "The Lottery"—and a particularly weak one at that—is when Mrs. Hutchinson taps Mrs. Delacroix on the...
-
Hello! This expression is already a sum of two numbers, sin(32) and sin(54). Probably you want or express it as a product, or as an expressi...
-
Macbeth is reflecting on the Weird Sisters' prophecy and its astonishing accuracy. The witches were totally correct in predicting that M...
No comments:
Post a Comment