Unit 3 Business Skills For E-Commerce Assignment Help
a) Select a pure e-commerce company and analyse its aims, products / service, process and delivery agent, explaining the implications of having digitised each aspect.
The E-Commerce Giant: Amazon
Aims of Amazon: The Amazon aims to provide fast service and delivery, cost effectiveness and highly convenient options to the customers. They believes in “Delivering the Best”, thus always keen to perform likewise. As per Jeff Bezos, the Founder and CEO of Amazon, “It’s our job every day to make every important aspect of the customer experience a little bit better.”
To provide best service, Amazon solves any problems of the customers at the first encounter that customers can have valuable experiences associating with them. The Amazon team is focused to provide 24 * 7 days service via social media, online chat, email, etc. (Amazon, 2016)
Products and services: Being the largest online leader Amazon has varieties of products and services that they sell from their online platform. Though started business as a virtual book store, it has diversified product categories such as apparel, furniture, electronics products assignment, personal care, software and video games, jewellery, groceries and food items and many others. Some of their services are Fire tablets, Fire Phone, Kindle e book readers, Fire TV and also cloud infrastructure services. Amazon is the largest seller of the world who sells Audio books. They have products to target all the customers in a particular region. They also sell low cost products under their own brand.( Amazon.(2016)
Another ecommerce company having similar business is ebay . Both companies sell more or less same products. ebay has fashion items, electronics, sporting goods, decor items etc. While comparing, it has been found that Amazon has wider varieties of items and services than ebay. EBay has Motors department, which is missing in Amazon. On the other hands Amazon various digital services are not provided by ebay.
Delivery agents: Every e-commerce companies hire delivery agents to safely deliver the products in the hands of the customers. Amazon also does the same. The delivery agents are the courier or logistics companies, delivery boys and operation teams of Amazon’s Global Delivery Strategy, who ensure timely delivery without any error reach to the customers, no matter the size or quantity, they fulfil customer’s expectations accurately in a cost efficient manner. (Amazon, 2016)
The logistics team have taken different delivery strategies such as Amazon Fresh, Amazon Flex, Prime Member and Prime Now to deliver the products same day and even Sunday.
The effective customers’ services of Amazon are possible due to the delivery agents who care for their customers. The customers get various facilities after placing orders online. As soon as they order, message comes to the customers’ mobile number that they have received it and inform the due date when the customers can expect the products. In that period customers get the facility to track the delivery details that is it despatched from the warehouse or not, has it reached to the local courier companies etc. Messages are also sent by Amazon regarding despatch, delivery timing etc. (Amazon,2016)After delivery, instantly message comes in the mobile that it is delivered and seeks for customers’ valuable feedback. To make the customers happy Amazon has flexible services such as same day delivery and Sunday delivery for the office goers. The company also provide various promotional offers and free changing options if customers do not like the product. Free trial and free delivery also some other options. To keep the transaction fair and transparent, all information is sent to the customers email that it can be documented by the customers if required.
Different aspects of Amazon’s business
Security: Amazon provides complete security to its customers to prevent from any loss. The loss prevention strategy is taken by Amazon to protect data, products and people both the customers and employees. Security measures are also taken while making any online transaction by the customers.
Marketing: Mainly digital platform is chosen by Amazon and sometimes broadcasting media like TV and magazines also serve as the tools of advertising. Online they provide various offers and discounts and also send email to the customers for informing them about the new offers, products or services. (Amazon, 2016)
Logistics: Amazon hires delivery agents to deliver their products within or outside the national boundaries. They have instant and fast services to reach the products on the same day if customers want. (Amazon, 2016)
Operations: All the operation of Amazon in their floor is done with extreme safety. The functional operations control the inbound and outbound processes and ensure effectiveness by inputting innovation, skills and efficiency of the workers. (Amazon, 2016)
HR: The HR department of Amazon, act tactically and strategically to increase employee involvement and engagement. Employees are trained to be customer-focused, and the HR department supports the operations of the company by setting policies simple and growth oriented for the employees. They try keep employees engaged and satisfied that employees can be most productive.
Management: The management is open and always seeks suggestions from the employees to provide better customer service and satisfaction.
Customer segments: Amazon targets all types of customers worldwide as they have products, services and offers for everyone irrespective of demographic, cultural and psychographic profile.
Customer service department: The customer service department of Amazon provide best support to the customers. Solve any problem at the first time that later customers can enjoy most valuable experience with them. (Amazon, 2016)
Implications of Digitised management: In Amazon, all these aspects of management discussed above, are digitised. Though it has many good points, but some challenges are also there that may impact the processes.
Customer service loses its personal touch: In online selling or marketing the personal touch is missing that understand customer’s requirement, solve problems individually, and guide them in every aspect of buying products. The concept of personal selling is also have diminished that create long term relationship with the customers. ( Reynolds, 2004)
Security risks: While making payment risk of being account hacked, cyber attacks improper payment etc also impose security questions to the customers mind.
Society: On social and environment also the digitised process impacts. It increases the use of energy and carbon emission in the environment. On the other hand many people are losing jobs, as those works were done by employees, now it is being automated. Thus company’s reduces their employees’ numbers and mostly hiring those who are digitally sound. ( Reynolds, 2004)The senior citizens are lagging behind as they are not so expert in digital form as youth.
Sales: Customers are not getting the touch and feel effects as well as they are not able to see the physical products while purchasing. Thus many of them are being unsatisfied. Sometimes fake delivery also happens, breaks customers trust on the organisation.
Human resources: The numbers of human resources are downsized as maximum functions are performed digitally and automatically.
Management: The span of control, management activities are also downsized due to the lesser numbers of tasks to be handled and employees to be controlled.
Consumer rights: Customers rights to have the right products, accurate information, sometimes hampered if any product is described or presented in a exaggerated way, but completely different than actual. Customers’ rights are also hampered if any problem or misconduct is not resolved by the company.( Whiteley,2001)
2b) Can this company continue to exist in the long term?
Yes the company is going to exist in the long run as the online market is growing day by day and online retailing is the most booming sector in the world.
The reasons of Growth:
Market Growth: The online sale of UK has increased a lot in the last decades. In 2015, the online sales has increased by 12.5% and earned 477 billion Euros. Amazon has grown rapidly than its competitors.
(theregister.co.uk, 2013) The company has shown a huge growth in recent years. Thus it can be said it is performing well by satisfying its customers. Thus it can achieve long run success.
Other reasons may be;
- Customers’ interest in online shopping is growing day by day and the mobile app of the Amazon is giving them the services at their finger tips to buy instantly.
- The maximum time of the day now everyone spend on internet. Thus selling their products online will be beneficial for them. ( Whiteley,2001)
- In online services Amazon need not to maintain huge store or inventory and they directly procure the products from the marketer. Thus they enjoy low price of the products than MRP. The more they earn the profit from this the more customers will be benefitted by their offers and other facilities. Thus it can be said it is surely going to lead the industry till it continues invention in their offering.
2c) what will be implications for its stakeholders?
|Stakeholders||Implications on Stakeholders|
|Customers||· The implications on customers are mainly positive because the services, Amazon provides to the customers that they can buy numerous kinds of products in one single click to their website.|
· Customers can order anytime from anywhere.
· Customers get various offers or deals and if is notified instantly by the company. (Dholakia, 2002).
· Customers get fast delivery without visiting the store.
· They can choose from wide variety options at low cost.
· Customers’ problems are handled immediate basis.
· To analyse the negative implication it can be said, customers are missing personal touch and services of the marketer and sometimes their rights are hampered due to certain safety and security reasons.
|Employees||· The digitised form of business reducing the manual effort of the employees. ( Whiteley,2001)|
· They are becoming skilled in digital management.
· Employees are getting growth opportunities as it is newly invented and there are so many scopes of invention.
· To think critically it can be said that, the numbers of employees are downsized and automated work is reducing their skills of selling and others. The senior citizens are mostly impacted as they have little knowledge on using digitised form of business. Thus it is reducing their motivation and involvement.
|Society||· The society is benefitted by their services as they can compare and then buy. Wide options are available to purchase products from low cost to premium brands.|
· Society is benefitted by the multi cultural products and services.
· It is creating new job opportunities.
· Some negative implications are also there. The new concept of business is eliminating many job position, thus requirement of employees is downsized.
· The operations of online giant like Amazon, hampering the activities of local retailers. (Dholakia, 2002).
|Delivery agents||· The delivery agents of Amazon are being benefitted by the growth of the organisation.|
· They are receiving more orders and Amazon’s structured payment services and other processes have made their operations easy.
|Government||· The implication on the government is appreciable as Amazon is contributing to the growth of the country by increasing GDP.|
· It is creating job opportunities directly in their organisation and indirectly in Suppliers organisation like Royal Mail, their delivery partners.
Thus it can be concluded that E Commerce is the opportunities should be exploited by every organization in every sector as it mutually benefits both the customers and the marketer. The main aim of any business is to provide satisfaction to the customers in terms of product, price, availabilities and benefits. E commerce or the online platform is the new demand of today’s world that needs to be fulfilled by the marketer. Now customers do not get time from their busy schedule and thus they prefer to order or avail all the information system in their favorite mobile or laptop. It also benefits the marketer to reduce the cost of operations that they can distribute among the customers. The example of Amazon has clearly shown the implication both positive and negative to in making overall processes digitized.
Thus it can be recommended that marketer should eliminate the negative implications by increasing innovation in their services that customers will be more satisfied and demand will be increasing and the profitability of the marketer as well.
Amazon.(2016).Amazon Business. [Online]. Available: http://www.amazon.com/b?ie=UTF8&node=11261610011. Assessed on 15th March, 2016.
Amazon.(2016).Opportunities.[Online].Available: http://www.amazonfulfillmentcareers.com/. Assessed on 15th March, 2016.
Bushry., M.(2005). E-Commerce. Firewall Media. Order Now