1. What is Amazon’s business?
a. Offering a wide variety of products, beginning with books and eventually to DVDs, CDs, apparels, electronics, software, health and personal care items, etc. b. It offers an online marketplace where users are able to use its site to sell and buy products. c. Amazon has its own online music store, Amazon MP3, where it sells downloads exclusively in MP3 format without digital rights management, the 1st such offering online. d. With its own warehouse, Amazon is able to keep inventory at low costs and offers products at relatively competitive pricing. e. Amazon's Subscribe & Save program offers a discounted price on an item (usually sold in bulk quantities), free shipping on every Subscribe & Save shipment, automatic shipment of the item every one, two, three, or six months, with the option of canceling at any time.
1. What are the business needs/problem that are addressed in the case?
Amazon identified a need to open a warehouse of its own
| * To obtain low costs for products * Ability to control the entire transaction process
| A need to computerize their warehouse operation
| * Due to the wide variety and quantity of products * To ensure a highly efficient work process while reducing human error
| A need to build a new warehouse for another year
| * Its warehouse today is able to handle 3 times the volume as compared to 3 years before. Inventory turnover rate is 20 times a year as compared to other retailers (only 15).
| A need to invest in software development
| * By converting its existing operating systems to Linux, a free, and open source software, helped it to reduce operation costs. * Computers generate data to help enhance customer service by recommendations to customers based on registration details and past historical purchase records.
What kinds of IS (Information Systems) did they use to address these...
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