Amazons Business Model and Corporate Careers - Case Study Example

Amazon operates its business on a geographic basis. The company has organized its business into two segments; North American and International. The behemoth generated total sales of $74.4 billion in 2013. Of this, North America accounted for $44.5 billion in sales while the International segment accounted for $29.9 billion in sales. The North American division registered a year-over-year percentage growth of 28 percent in 2013 as compared to 14 percent growth in the International markets. Amazon intends to expand its overseas operations, especially in countries like India and China, and plans to generate 50 percent of its sales from International operations in the future (Amazon.com).

Jeff Bezos

Jeff Bezos is the President, Chief Executive Officer, and Chairman of the Board of Amazon.com. He is a hard taskmaster and lays a lot of emphasis on customer satisfaction. If Bezos receives any complaint from a customer, he finds the root cause and takes corrective action (Stone). Bezos adopts an unconventional, hard-nosed style when it comes to managing Amazon. The CEO is averse to groupthink and does not like employees to get into their comfort zones. He makes small teams and encourages people to be innovative (Baer). As a kid, Bezos spent a lot of time at his grandfather’s ranch. He helped his grandfather with varied tasks like fixing machines and managing cattle. Among other skills, he learned self-reliance while working at the ranch. Bezos joined Princeton University to study Physics.

However, he changed tack and graduated in computer science and electrical engineering. The net worth of Bezos is estimated to be $19 billion making him one of the 30 richest men in the world (Anders). He contemplated this online entrepreneurial venture while working with D.E. Shaw & Co. He came across a statistic that Internet usage was growing at a phenomenal 2300 percent. Bezos wanted to cash in on the opportunity and Amazon.com soon saw the light of the day. The business started by selling books but expanded rapidly. Since its inception, there has been no looking back for Amazon.com. The start-up of Blue Origin, Kindle, and Zappos establishes that Bezos follows his passion, takes risks, and has an unflinching belief in his abilities.

Amazon’s Business Model

Amazon creates economic and social value by focusing on cost and customer convenience. Customers can access more than 130 million stock-keeping units with minimal ease at Amazon.com (Supply Chain 24/7). The online retailer thrives in a ‘culture of metrics’. The behemoth tracks more than 500 key performance indicators (KPIs) which enhance the company’s effectiveness. Amazon can offer same-day delivery services by using a judicious blend of state-of-the-art technology and the hard work of millions of blue-collar workers. The company has extended the ordering hours for this service which necessitates the need to increase efficiency within the organization (Perez). Amazon purchased Kiva Systems, a company that makes robots, to improve its distribution channel efficiencies (Bernton and Kelleher)

Profitability Issue
Jeff Bezos, the ‘Prophet of No Profit’ aspires to make Amazon.com the most customer-centric company on Earth. According to him, companies earn profits when they charge unreasonable prices to the customers. Amazon thinks about the customers, doesn’t worry about profits and that is why it is the darling of Wall Street (Yglesias). Investors would buy Amazon.com’s stock because its price has been growing at mind-boggling rates. From $50 in 2009, the stock price zoomed to $350 in 2013 (Oursler). For Amazon.com, being the biggest online retailer has proved advantageous even though the company earns low profits. The company can continue to innovate and deliver high growth rates to its investors.

Corporate Careers
I would like to join the customer services department at Amazon because it empowers employees to operate like owners, take decisions and solve business problems. Amazon thrives on customer satisfaction. It, therefore, employs best business practices in the customer services function and strives to improve them continuously. The second on my priority list would be a job in the transportation and supply chain department. This functional area is the focus of growth at Amazon. It includes product compliance and network optimization and thus gives enormous opportunities for innovation. An internship at Amazon will give me a chance to gain valuable real-world experience. It will also provide me with an opportunity to understand the working style and culture of the company. The HR department along with the functional managers can evaluate me as a potential employee during this period. The internship can thus result in a full-time job for me. Read More