Introduction
Amazon Company is a renowned corporation that was started with a mission to execute quality online distribution and selling books to customers. The company has executed this noble objective in an excellent manner. Currently, it remains the leading online book selling service provider that enjoys a large market share. Its high-tech warehouses and effective retail distribution centers have enabled it to serve its customers with limited complications.
Notably, the company’s product portfolios are internet based and they are managed using relevant software setups that promote efficiency in service delivery. Key services that it offers include online book selling, content development, browsing options and shopping guidelines to customers (Evans and William 247). Indeed, the company has been able to record exemplary performance over the years since its inception.
The company’s exemplary performance is attributable to the performance oriented operating strategies that its management has adopted. Firstly, the company is managed under quality assurance ideals that ensure that proper guidelines are followed in all aspects of operation. The management has always ensured that quality assurance guidelines are adhered to holistically with an aim of reducing potential risks that customers may face.
This has contributed in safeguarding customers from incurring risks that are normally attached to online transactions. The company also has proper pricing strategy, order fulfillment guideline, effective retailing and product display policies. These strategies enable the company to provide customer oriented services at low prices and in good time. Thus, this paper explores essential strategic aspects that drive performance in Amazon Corporation.
Contribution of Amazon.com’s CRM software in enhancing its market share and competitive advantage
As indicated by Evans and William (247), Amazon Corporation has been able to record good performance using various software setups. The software setups have been instrumental in facilitating operations in the institution that was formed with a core mission to provide quality services to customers in real time. In particular, CRM software has contributed immensely in the development of the company. Firstly, it has enabled the company to gain a huge market share due to its efficiency.
The software has also enabled the company to gain competitive advantage over its rivals that has in turn made it the leading online book selling corporation. The gains have been possible since the software provides quality support incentives that foster holistic satisfaction of customer needs. Particularly, the software has enabled the company to execute effective personalization of customer details. This ensures that customer details are only used for official purposes to avoid privacy risks.
The software also provides requisite incentives that ensure good display of products and other related information such as price and features. This enables customers to make informed choices of products from the wide range of items that are listed (Evans and William 247). Variably, the software has enabled customers to make orders for books and various items online without unnecessary delays. It has also promoted filtering of information pertaining to certain products especially items that are complimentary in nature.
For instance, when a customer orders a product, he is likely to see other items that hold synonymous features as the one ordered appearing on the web page. The effectiveness with which the software has enabled delivery of services in the company explains why the company has been able to record exemplary performance over the years.
How operating efficiencies are being realized in order fulfillment activities
The operating efficiencies in order fulfillment activities are being realized through the use of technology and effective retail strategies. The strategies have ensured that customers’ orders that are placed on timely basis are processed adequately and a relevant feedback is given.
They are tailor-made to enhance efficiency with which services and products are delivered to customers at the specified destinations without complications. In particular, technological advancements and software setups have enabled the company to develop a website that is and remains the leading edge trading platform. The platform has been developed to serve customers better (Evans and William 248).
It is accessible and easy to use since it provides excellent display of information that aids choice making and ordering of products. This is evident since if one accesses the website, he is bound to see the products that are in supply, their prices and features. One can also see ordering procedure of a product, payment methods available and mode of delivery.
The state of the company’s cost given the current position of its warehouses
Notably, low product prices that the company is offering to customers are based on the low cost of stock management. This has been caused by high-tech warehousing strategy that has been instrumental in eliminating bureaucracies and other cost centers that are not necessary. This has enabled the company to operate a leaner stock management structure that requires limited resources. The effective management of resources is what has made the company to be able to set low product prices.
This trend is likely to continue despite the evident changes that may occur depending on the state of the economy (Evans and William 248). This is because the company has put in place viable strategies to ensure that it maintains its operating cost as low as possible with an aim of continuing to provide its services at low prices.
To achieve this, the company seeks to enhance its retail strategy of operation, install more effective sorting software setups and eliminate bureaucratic service centers. The strategies are to ensure that the company is able to offer products at lower prices irrespective of changes in the economy.
The evident customer privacy risks
In reality, institutions are under obligation to manage information that customers provide with at most confidentiality and integrity. The information provided must also be used only for purpose with which it is given. This is essential since poor management of customer’s private information compromises their loyalty to the company.
This is apparent since it makes them to develop negative attitude about the company and eventually withdraw from being key stakeholders. Although Amazon Company has been managing information that appertains to its customers very well, it faces some privacy challenges that its management must address (Evans and William 249).
The privacy issues or risks that it faces include customer confidentiality, data gathering process, record keeping and access to unprecedented levels of information. Firstly, customer confidentiality poses a risk since some customers may divulge key strategic information that helps the company to service its customers well compared to its competitors. This may make the company to loose out its competitiveness.
Secondly, record keeping poses a privacy risk to the company due to the increasing number of customers. This is a risk since managing vast amount of information is always challenging. Other risk areas include access to unprecedented levels of information and data gathering procedures that must be enhanced.
Works Cited
Evans, James and William, Lindsay. The Management and Control of Quality.
Mason, OH: Thomson South-Western, 2008. Print.