Amazon is a well-known American e-commerce organization which was founded in the year 1994. In the beginning days, the organization started as an online bookstore, but later on the organization diversified into full range of products with the help of multi-level platform of e-commerce. Currently the organization employees more than 1,000 employees in Australia (Monteiro et al., 2018). In the beginning line of business, the organization aimed at selling of products directly to various customers with the help of web services. Apart from this, Amazon has built up Marketplace where third-party seller can easily sell both new and used products to large number of people (Trindade, Pereira & Vila-Concejo, 2016). Both business and sole traders can easily list their products on the marketplace without any kind of charges. For this, they need to pay a certain amount of revenue from their profit and sales to Amazon. At present, there are many marketplaces in various continent like Asia, Europe, and North America. It has been analyzed that almost fifty percent of the product which is sold on Amazon website is done by the help of Amazon Marketplace (Feldpausch et al., 2016). As Amazon Market is not in based in Australia, it has been reported that almost 1,000 Australian business currently sell their products on marketplaces of overseas.
In the coming pages of report, an idea has been provided regarding the current operating strategy of Amazon Australia. After that porter value chain model has been used in understanding Amazon Australia. Apart from this, analysis has been done with respect to current human activity system. After that, a suggestion has been provided with respect to a new information system which can add business value to Amazon Australia. The last part of the report mainly deals with a list of recommendation for Amazon Australia.
Amazon Australia gained huge success which is a result of high efficiency of its operation management (Espinoza et al., 2014). The organization makes use of list of strategies like mass communication and integrated business operation.
Mass communication: The main difference between a physical retailer and Amazon is the online operation which creates a platform for adopting mass customization (de Almeida et al., 2016). Amazon creates a platform which provides huge collection of books and other products without keeping them physically on the shelf. Large number of books are available at Amazon which can be purchased which require brick and mortar for keeping huge inventory.
Integrated Business operation: Success of Amazon mainly relies on strategies of various integrated business operation (Garcia Drigo et al., 2016). Amazon makes use of supply chain server which is needed for predicting the demand and optimizing the given supply chain. At first, the data of customer is collected and processed for finalizing the order. Amazon warehouse provides information related order of customers which is in respect to coordination.
Henry Mintzberg states that organization like Amazon Australia can be differentiated into three basic structure (Yang, 2018). The three structure are key parts of organization, mechanism of prime coordination and lastly type decentralized used. The key part of the organization plays a key role in understanding the success or failure. Prime coordination mechanism is an important tool which is used by organization for proper coordination of various activities. Type of decentralization emphasizes on the extent to which organization are involved in proper decision making process.
The organizational structure of amazon can be distinguished or differentiated as hierarchical. Team of senior management is generally inclusive of two CEO, three senior vice president and lastly one worldwide control who are responsible for understanding the vital aspect of the business (Stewart et al., 2015). There is more seven segments like information technology, human resources and head of legal operation which is reported to Amazon CEO. This particular structure has been developed due to large size of business. The point should be taken into account irrespective of the large size unlike other organization, Amazon Australia is very flexible to easily adapt the various kinds of changes in the outside marketplace.
Value chain analysis can be stated like an analytical framework which aims in identifying the various activities that can easily create value and competitive advantage (Moura et al., 2016). Amazon does not have long term contract with the vendors for guarantee the proper availability of its working merchandise specifically the terms of payment. FBA that is fulfillment by Amazon can be stated as the main behind Amazon logistics for organization as its owns retail business. Seller can also make use of FBA by analyzing the inventory in various Amazon fulfillment centers. Amazons take into account the full responsibility of customer service, product returns and lastly logistics. Amazon also makes use of logistics from beyond the given point to easily serve Amazon marketplace and apart from this, it tends to offer various logistics service to others.
Amazon Australia can easily compete against a variety of organization which is inclusive of retail store and large organization like Walmart. The global chain or scope of e-commerce business creates a platform Amazon can easily diversify a set of external forces (Feldpausch et al., 2016). Thus the organization ensures to accept the changes with respect to online industry environment. A list of intensities which is based on external factors can easily affect Amazon are
Analysis on current human activity system
Current human activity system in Amazon Australia
Current human activity system in Amazon Australia is drone delivery system which can easily respond to human gesture in much easy way (Espinoza et al., 2014). The whole idea of Amazon Australia is developing an unnamed aerial vehicle can easily send packages is less than 30 minutes. Based on the behavior of an individual that is welcoming thumb or waving thumb drone can easily adjust the behavior. Among the many other ways of delivery drones can easily transform the given business operation and receive much of attention due to delivery of packages to the house of customers.
Some of issues which are encountered by Amazon Australia due to its drone delivery system are
Short battery life: Drones are very easy to use and come up with such short battery life. The average lifespan of drone is around ten to fifteen minutes. Larger drones can easily fly within the interval of twenty-five minutes. It generally takes around three hours for its complete charge of batteries.
Expensive device: Delivery through drones are considered to be expensive in nature (de Almeida et al., 2016). Only some of the few organization makes use of drone delivery system for improving its logistics.
Privacy breach: Drone delivery system makes use of camera for delivering its materials to target location (Cai et al., 2014). Camera can easily record the actual location and person without being able to receive the object. So corrupt drones can easily exploit the recorded information of the consumer.
The major stakeholders of this human activity system are owners, management, employees, customers and lastly financial institutes.
DeLone Mclean Model of information system focus on the success of coherent model of knowledge and providing proper guidance (Cai et al., 2014). The semantic level can be easily defined as success of information in conveying the meaning. The level of effectiveness can easily affect the information of the receiver. Depending on both process and consideration there are generally six dimensions of success which needs to be proposed (Rowland et al., 2016). A temporal process generally puts emphasis on the fact that IS (information system) is first taken into account. Secondly, the managers and users can easily gather experiences by making use of system. Managers and user’s experiences can easily experience feature by making use of system or any information products. The use of information system and its products can easily impact on the various organization (Paolucci et al., 2016). It comes up with higher implication model which is requirement for analysis, measurement and reporting of IS structure. A proper kind of method is needed for creating features of IS which comes up with various features that come up with degree of both system and information technology.
Drone delivery system provides success in terms of efficiency, efficacy and lastly, effectiveness in this HAS system. Drones are being by some of giant e-commerce like Amazon where the deliveries are fulfilled by drones. Amazon comes up with huge power which can be used for delivery by small retailers and another brand too (Pinho, Marengo & Smith, 2015). Major number of drones are used generally used for convenience home delivers. Same day delivery is already being offered by Amazon and with the passage of time, it is going to be popular. Drones will be drive same day delivery within the given time (Woodhead et al., 2016). The initial cost of drones will be much more but soon as the business like they have it the involved cost of delivery will be reduced due to cost of maintenance which will be cheaper in comparison to postal service cost. With the help of drone delivery system, the required parcels can be easily delivered to specific addresses. Along with these, the number of Mis-delivered parcel due to human error will be much less (Trindade, Pereira & Vila-Concejo, 2016). People residing in the remote areas can be easily benefitted from the various medical stores.
A small robot machine comes in different shapes and size which can follow the task which is as per the command that is droid. This particular device comes up to handle weight of 10 to 12 kg within time interval of 30 minutes (Garcia Drigo et al., 2016). Droid comes with capability to easily capture different pictures along with videos from certain areas human is not easily reachable. Droid comes up with capability to easily climb up and down at any given temperate. It comes up with microphone by which they can easily interact with customers. GPS stands for global positioning system which can help the organization can easily keep a track of droid which works between source and destination (McDermott, Irland & Pacheco, 2015). Droid can easily travel with a speed of 10 to 12 kilometers. Various organization around the globe makes use of droid robot. By make use of droid robot it can decrease the various kinds of environmental pollution as they do not emit the various kinds of harmful gas from vehicle, work and apart from this sound pollution get lowered. Energy consumption in droid is almost equal to single light bulb.
This new system has been designed in such a way that it can easily delivery the products in much better way. Amazon can easily control the data which can collected by droid delivery system. The important data can be collected at the time of dropping the delivery packages. The new system has been designed in such a way that it can allow the droid to easily to scan and collect the required from the data (Jokinen et al., 2015). The collected data can be easily used for notifying the damage proof on the given home or recommending the given service for addressing sick looking. Droid research for Amazon which is addressing the given technology in new way or path. Droid system is helpful in addressing new solution for the problem where droid can easily be parked.
Droid delivery system is customer facing information system in Amazon Australia (Lloyd et al., 2015). Customer facing can be defined as a business feature service which is experienced by a customer. Customer relationship management has been designed for providing user experience to all the customers of the touch points. Customer facing service is generally inclusive of software or technology along with proper user interface (Brienen, 2015). A customer-facing service is generally inclusive of various parameters like software, hardware and technology or another kind of application which can easily interact with the customers.
Droid delivery system can easily provide large number of benefits to Amazon Australia (Bass et al., 2014). It can easily create a positive impact on the stakeholders of this organization. Droid delivery system is some kind of logistic devices which are required for carrying material from the retail outlet to the location of the customers.
Enhances time management: Delivery of drone generally allow some of the counterparts to easily focus on certain areas of delivery procedures.
Time-saving: Droid delivery system can easily make use of additional manpower for the institutes to serve it. It is focused on carrying object and transports it some other location.
The new droid delivery system can bring huge amount of benefits to Amazon Australia (Azevedo-Santos et al., 2016). The new delivery system has been designed in such a way that it can easily deliver commodity to large number of consumers. Droid system reduces any chance of road accident of delivery guys.
Amazon Australia should keep their system updated as the technology is advancing and competition is increasing on daily basis. The organization should focus on certain number of things like easy search option, elimination of checkout distraction, live chat with customers and lastly live chat.
Six steps should be taken by Amazon Australia for success of the new information system like
Conclusion
From the above discussion it can be easily concluded that this report is all about Amazon Australia. In the above pages of the report its strategy and operation along competes in the market has been discussed in details. The organization form of Amazon Australia has been provided by making use of Mintzberg classification. A value chain analysis of Amazon Australia has been done by making use of Porter value chain has been discussed in details. A proper analysis has been done by making use of porter competitive five force model. A rich picture has been drawn which highlights various kinds of issues and ideas of stakeholders. DeLone McLean Model of information system success has been used for describing the various areas of human activity system. Droid delivery system has been suggested which can easily add value to the business of Amazon Australia. A proper description has been provided regarding data and information with is required in new system. A process model has been provided by making use of BPM notation for new information system that is Droid delivery. The last part of the report mainly deals with a list of recommendation for Amazon Australia.
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