Student Name: Saikumar Uppula

Student I’d: CIM 9489 Words:2212

Canterbury Institute of Management (CIM)

Student Name: Saikumar Uppula

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Student Name: Saikumar Uppula
Student I’d: CIM 9489 Words:2212

Executive Summary:
Originally an online book marketplace, Jeff Bezos launched the multinational technology

corporation Amazon in 1994. Since then, it has grown into a massive global retail giant.

However, regulator monitoring and antitrust accusations present severe obstacles to it,

especially its usage of vast amounts of data from independent sellers. Amazon may use

cutting-edge technologies like blockchain and artificial intelligence (AI) while abiding by

moral AI frameworks to solve these problems. Amazon's political climate, culture,

organisational structure, and competitive landscape significantly impact how well it can

adopt new systems. Its decentralised structure might make it more agile, but obstacles

might arise from internal politics and cultural factors.

However, change is possible because of Amazon's dedication to innovation and focus

on the needs of its customers. When Amazon's value chain is examined, it becomes

clear how essential information systems are to the efficiency of its operations,

distribution, marketing, and sales departments. Amazon sustains its competitive

advantages in infrastructure, data utilisation, and customer attention by utilising

algorithms and data analytics. Porter's Five Forces study further clarifies Amazon's

advantages and disadvantages. Its position against new entrants, suppliers, and

purchasers is strengthened by its vast infrastructure and data-driven decision-making.

To sum up, Amazon's success is a result of its ability to innovate, use data, and put the

needs of its customers first. Through a culture of continual improvement, ethical

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Student Name: Saikumar Uppula
Student I’d: CIM 9489 Words:2212

standards observance, and acceptance of technology advancements, Amazon may

surmount obstacles and maintain its leadership position in the e-commerce sector.

Table of Contents
Executive Summary:........................................................................................................ 2
Introduction:..................................................................................................................... 4
Issues Faced by Amazon Due to Current Information Systems:......................................4
How Technologies Can Resolve These Issues:...............................................................5
Amazon's Business Model:..............................................................................................5
Organizational Structure:................................................................................................. 5
Politics:.............................................................................................................................6
Culture:.............................................................................................................................6
Environment:.................................................................................................................... 6
Amazon's Primary Activities:............................................................................................6
Amazon's Supporting Activities:.......................................................................................7
Amazon current information systems:..............................................................................8
Impact of organisational structure, politics, culture, and environment..............................8
Organizational Structure:..............................................................................................8
Politics:......................................................................................................................... 9
Culture:......................................................................................................................... 9
Environment:.................................................................................................................9
Amazon's value chain Analysis:.......................................................................................9
Porter’s Five Forces:......................................................................................................10
Competitive Advantages of Amazon:..............................................................................11
Weaknesses Compared to Competitors:........................................................................11
Amazon Operational Excellence:...................................................................................12
Recommendations:........................................................................................................ 12
Conclusion:.................................................................................................................... 13
References:....................................................................................................................14

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Student Name: Saikumar Uppula
Student I’d: CIM 9489 Words:2212

Introduction:

Amazon, a global tech company, is based in Seattle, Washington. When Jeff Bezos

started the business on July 5, 1994, it was mostly an online store that sold books. Still,

it quickly grew into many other goods, such as clothes, electronics, and home goods.

The study discusses Amazon's problems because it uses much data from outside

sources. These problems include claims that it is breaking trade laws and being closely

watched by regulators. This paper discusses how important ethical machine learning

models are and suggests using the latest innovations like blockchain to fix these issues.

It also looks at Amazon's business environment, organisational structure, attitude, and

the companies that compete with it.

Issues Faced by Amazon Due to Current Information Systems:

Amazon IT infrastructure is not in good shape because it has many problems. The most

important is the European Commission's trade claims that Amazon misuses a lot of

information it gets from third-party sellers. People say that Amazon wrongly uses this

information to help them make decisions about their stores, which could change how

competition works in online markets for goods. Amazon can make focused and exact

plans about which suppliers to use, prices, and new products because it can use

statistics to its advantage. This may make it harder for other companies to compete

fairly (Natasha Lomas, 2020).

How Technologies Can Resolve These Issues:

Amazon has access to many modern technologies that it could use to address worries

about data security and fair competition. Amazon can thoroughly examine seller data

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Student Name: Saikumar Uppula
Student I’d: CIM 9489 Words:2212

using machine learning (AI) and analytics. This makes sure that decisions are made

openly and fairly. Amazon can ensure equal rivalry in its market by using algorithms that

can spot and stop any misuse of seller data. In addition, blockchain technology makes

data management clear and safe. With a transparent accounting system, Amazon can

protect third-party merchant data and ensure that only approved entities can access it

(Stabile et al., 2020).

Amazon's Business Model:

Amazon is a place where other people can sell things and a store that sells its products.

It uses big data to help it make business choices like when to start new goods, set

prices, keep track of supplies, and choose sources. Because the company is highly

automated and uses computational tools, it can collect and analyse vast amounts of

real-time data from more than 800,000 active sellers in the EU (Aversa, Haefliger,

Hueller, & Reza, 2021).

Organizational Structure:

Amazon's organisational structure is based on its different business units and divisions,

such as its Prime reward programme, retail operations, marketplace services, and

shipping and delivery services. It does business worldwide, with different area groups in

other markets. The company's organisation makes using data-driven insights in daily

activities and decision-making easy (Global, 2023).

Politics:

Regulatory bodies, like the European Commission and the U.S. House Judiciary

Committee, are keeping a close eye on Amazon because they are worried about trade

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Student I’d: CIM 9489 Words:2212

problems and market domination. There are more extensive arguments about the role

of tech giants in the economy and the need for government control to ensure fair

competition (Burnette et al., 2022).

Culture:

Amazon's mindset values new ideas, putting the customer first, and working efficiently.

It creates a fast-paced and creative atmosphere that encourages workers to try new

things, take risks, and keep improving their ideas. The company's mindset of making

data-based decisions affects its processes and drives constant growth and optimisation.

Environment:

Amazon works in a fast-paced and competitive industry where technology is constantly

changing, customer tastes are always changing, and rules are continually changing. It

deals with these problems by being flexible and quick to change, using its size and

resources to develop new ideas and stay ahead of the competition (Mestanza-Ramón et

al., 2022).

Amazon's Primary Activities:

Inbound Logistics: Amazon stores get things from sellers, house them, and send them

to customers. Ensuring there are always enough things means planning procedures,

keeping track of supplies, and doing good office work.

Operations: Selection, packing, and delivering items that clients have bought are some

of the things that Amazon does. This also includes managing its vast array of stores and

delivery centres to cut down on shipping times and make things run more smoothly.

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Student Name: Saikumar Uppula
Student I’d: CIM 9489 Words:2212

Outbound Logistics: After taking care of the orders, Amazon ships the items to

customers' addresses. This means choosing the fastest, cheapest, and most precise

ways of delivering the item while making sure you can track its arrival accurately

(Garnelo et al., 2020).

Marketing and Sales: Getting people to visit the website and market its goods takes a

lot of advertising. These include online ads, email campaigns, partner marketing, and

systems that make buying more personal.

Amazon's Supporting Activities:

Procurement: Amazon buys things from sellers worldwide and works out deals and

contracts for the lowest prices and terms. For this, you must keep up with an enormous

amount of sources and ensure that things can be obtained and of good quality.

(Grenspan, 2023).

Technology Development: A significant component of Amazon's revenue is IT. Online

shopping, transportation and computing in the cloud are all made possible by it. Amazon

spends a lot of money on study and development to improve its platform and work.

Human Resource Management: Amazon has a lot of employees around the world who

help it run. These include warehouse workers, software engineers, customer service

reps, and managers.

Infrastructure: Amazon spends money to build and maintain a robust system

supporting its website and shipping network. For example, Amazon Web Services has

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data centres for its cloud computing services, fulfilment centres, delivery cars, and the

technology infrastructure it needs to run large-scale operations smoothly (Global, 2023).

Amazon current information systems:

Amazon's information tools now are very much a part of how it runs, especially its online

store. The company's business plan is automatic and relies on statistical tools to make

decisions. Its vast data infrastructure supports this. Amazon gets a lot of real-time

information from sellers and looks it over. This gives you much information about sellers'

ads, deals, earnings, shipping success, and customer comments. Amazon's computers

use this vast amount of data to decide many things about its retail business, such as

which products to sell, how much to charge for them, how to handle its supplies, and

how to work with its suppliers (da Cruz, Benayas, Ferreira, Santos, & Schwartz, 2021).

Impact of organisational structure, politics, culture, and environment

(Plan to implement an innovative system)

Organizational Structure:

Amazon's highly decentralised organisational structure could make it easier or harder to

implement a new system. Based on its focus on small, self-sufficient teams called "two-

pizza teams," it may be easier for teams to quickly adopt new technologies or

processes. However, getting different teams or groups to work together and be on the

same page could be challenging, especially if the new system needs to connect

different functions (Global, 2023).

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Student Name: Saikumar Uppula
Student I’d: CIM 9489 Words:2212

Politics:

Amazon's internal politics could make it harder to implement a new system. There may

be pushback or protest against adopting the suggested system if it changes the balance

of power or risks the interests of specific departments or people. This could be turf

fights, bureaucratic roadblocks, or rival plans that slow down or stop the application

process (Burnette et al., 2022).

Culture:

Amazon's mindset of coming up with new ideas and putting the customer first could

make it easy to adopt a new method. The company's well-known "customer obsession"

concept could push them to keep looking for ways to improve the customer experience,

which would encourage them to support and accept the new system (Burnette et al.,

2022).

Environment:

Amazon works in a competitive and dynamic environment where customer tastes are

changing, technology is advancing quickly, and regulations are being monitored.

Innovative systems may need to be used to keep ahead of competitors, improve

operational efficiency, and take advantage of new possibilities due to the competitive

environment and market dynamics (Wirtz, 2020).

Amazon's value chain Analysis:

Procurement: Amazon buys things from sellers and small businesses to sell on its

website. Information systems are essential in this case because they keep track of

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Student I’d: CIM 9489 Words:2212

goods, make talking to providers easy, and use past data to predict future demand

(Ricciotti, 2020).

Operations: Order handling, delivery, and storage are all parts of Amazon's business.

Information systems help to speed up these steps by automating order processing,

using data analytics to improve warehouse structure and operations, and keeping track

of supplies in real-time.

Distribution: Information systems are an essential part of Amazon's complicated

delivery network. They let you find the best delivery paths, track goods in real-time, and

give customers access to updates on the progress of their orders.

Marketing and Sales: Amazon markets and sells things using a lot of different kinds of

technology. Data analytics makes it possible to target ads more precisely, find the best

price strategies, and create personalised ideas for customers.

Porter’s Five Forces:

Threat of New Entrants: It is hard for new companies to compete with Amazon because

it has built up such an extensive infrastructure. This includes complex transportation

networks and delivery hubs.

Bargaining Power of Suppliers: Amazon has a lot of talking power with sellers because

of its size and buying power. This lets it get better terms and prices (Grenspan, 2023).

Bargaining Power of Buyers: The extensive product range, low price, and customer-

centric strategy of Amazon diminish the negotiating power of individual purchasers. With

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Student I’d: CIM 9489 Words:2212

perks like free delivery and streaming services, Amazon's Prime membership increases

consumer loyalty.

Threat of Substitute Products or Services: The danger of alternatives is minimal in the

e-commerce industry, particularly for Amazon, because of its wide selection of goods

and services. However, competition from platforms like Netflix or Disney+ is dangerous

in some categories, mainly digital content.

Intensity of Competitive Rivalry: Amazon is up against fierce competition from

conventional stores and internet platforms worldwide. There are a lot of competitors like

Walmart, Alibaba, and eBay to contend with regarding market share, product offerings,

and prices (Global, 2023).

Competitive Advantages of Amazon:

Amazon continues to have several competitive advantages that have helped it rise to

the top of the world market. Its unmatched size and infrastructure—which includes a

vast network of fulfilment centres and sophisticated logistical capabilities—are essential

to its success. Amazon stands apart from its rivals because of its infrastructure, which

allows it to run smoothly and quickly complete orders.

Furthermore, Amazon uses analytics and data to inform decision-making in its business

divisions. The firm maximises operational efficiency and improves customer experience

by optimising pricing, inventory management, and personalisation tactics using big data

and algorithms (Denga, Vajjhala, & Rakshit, 2022).

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Student Name: Saikumar Uppula
Student I’d: CIM 9489 Words:2212

Weaknesses Compared to Competitors:

While Amazon is unquestionably a dominating force in the worldwide market, it has

several disadvantages over its rivals. The regulatory scrutiny it faces is one of its

biggest obstacles, especially regarding antitrust probes in the US and the EU. These

investigations result in limitations or modifications to Amazon's business practices,

which could threaten the company's long-term plans and operations. The business has

also come under fire for its labour policies, with complaints focused on warehouse

workers' treatment and working conditions (Grenspan, 2023).

Amazon Operational Excellence:

Amazon has achieved organizational success in many areas of its business, especially

when using big data to run it. The company's focus on data has led to highly automated

processes and computer decisions that have helped it succeed in choosing products,

setting prices, managing supplies, and working with suppliers. Amazon has a significant

edge over its competitors because it uses real-time data from third-party sellers on its

website to make intelligent choices that help its retail business (Wirtz, 2020).

Despite these problems, Amazon must deal with regulation issues and follow trade

laws. At the same time, it needs to keep coming up with new ideas and using data-

driven strategies. This could mean making its data methods more transparent, putting

protections in place to protect third-party sellers' interests, and working directly with

officials to address their worries.

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 Student Name: Saikumar Uppula
Student I’d: CIM 9489 Words:2212

Recommendations:

 Artificial intelligence, machine learning, and robotics are just a few of the cutting-edge

technologies that Amazon should keep putting money into.

 Amazon should put data protection and stability first and use data analytics to get

helpful information.

 Amazon can build trust with customers and third-party sellers by improving how it

handles data and ensuring that data use is transparent and fair.

 Amazon should simplify its supply chain to cut costs, shorten wait times, and make

keeping track of its goods easier.

 To be more environmentally friendly and socially responsible, Amazon should put green

projects at the top of its list of priorities throughout its entire value chain (Burnette et al.,

2022).

Conclusion:

When you look at how Amazon works, you can see that the company is firmly rooted in

the problematic realms of modern technology, rivalries, and government oversight. The

company's success comes from its ability to keep its eye on the customer and use

enormous quantities of information to drive growth. Amazon stays ahead of rivals with

its information systems, making buying, running, shipping, marketing, and selling things

faster and better. This is shown in the value chain study. A Porter's Five Forces study

indicates that Amazon is good at technology, data analytics, and putting the customer

first. Amazon must keep investing money in technology, ensure that data is correct, and

improve its supply chain.

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Student Name: Saikumar Uppula
Student I’d: CIM 9489 Words:2212

References:

Aversa, P., Haefliger, S., Hueller, F., & Reza, D. G. (2021). Customer complementarity in

the digital space: Exploring Amazon’s business model diversification. Long

Range Planning, 54(5), 101985.

Burnette, C. B., Luzier, J. L., Bennett, B. L., Weisenmuller, C. M., Kerr, P., Martin, S., . . .

Calderwood, L. (2022). Concerns and recommendations for using Amazon MTurk

for eating disorder research. International Journal of Eating Disorders, 55(2),

263-272.

da Cruz, D. C., Benayas, J. M. R., Ferreira, G. C., Santos, S. R., & Schwartz, G. (2021).

An overview of forest loss and restoration in the Brazilian Amazon. New Forests,

52, 1-16.

Denga, E. M., Vajjhala, N. R., & Rakshit, S. (2022). The role of digital marketing in

achieving sustainable competitive advantage. Digital Transformation and

Internationalization Strategies in Organizations, 44-60.

Global. (2023). Community Impact Report. Retrieved from

https://assets.aboutamazon.com/c6/ff/2c89c0ff437cb855a015e81ed898/amazon-

community-impact-report-2023.pdf

Garnelo, L., Parente, R. C. P., Puchiarelli, M. L. R., Correia, P. C., Torres, M. V., &

Herkrath, F. J. (2020). Barriers to access and organization of primary health care

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Student Name: Saikumar Uppula
Student I’d: CIM 9489 Words:2212

services for rural riverside populations in the Amazon. International Journal for Equity in

Health, 19, 1-14.

Grenspan, R. (2023, 06 26). Amazon Five Forces Analysis (Porter Model). Panmore

Institute. Retrieved from https://panmore.com/amazon-com-inc-five-forces-

analysis-recommendations-porters-model

Mestanza-Ramón, C., Cuenca-Cumbicus, J., D’Orio, G., Flores-Toala, J., Segovia-

Cáceres, S., Bonilla-Bonilla, A., & Straface, S. (2022). Gold mining in the Amazon

Region of ecuador: History and a review of its socio-environmental impacts.

Land, 11(2), 221.

Natasha Lomas. (2020, 11 10). Europe lays out antitrust case against Amazon’s use of

big data. Retrieved from https://techcrunch.com/2020/11/10/europe-lays-out-

antitrust-case-against-amazons-use-of-big-data/

Ricciotti, F. (2020). From value chain to value network: a systematic literature review.

Management Review Quarterly, 70(2), 191-212.

Stabile, M. C., Guimarães, A. L., Silva, D. S., Ribeiro, V., Macedo, M. N., Coe, M. T., . . .

Alencar, A. (2020). Solving Brazil's land use puzzle: Increasing production and

slowing Amazon deforestation. Land use policy, 91, 104362.

Wirtz, J. (2020). Organizational ambidexterity: cost-effective service excellence, service

robots, and artificial intelligence. Organizational Dynamics, 49(3), 1-9.

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