Management Principles of E- Business 1
Managing the Principles of E-Business
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Management Principles of E- Business 2
Table of Contents
1. Industry Overview..............................................................................................................2
2. Introduction of Amazon UK...............................................................................................3
3. Analysis of Amazon............................................................................................................3
3.1 Being Customer-Centric...................................................................................................4
3.2 Driven by Digital Technology.........................................................................................4
3.3 An agile enterprise that can render changes.....................................................................5
4. Amazon Strategy.................................................................................................................5
5. Recommendations for progressing Digital Transformation Efforts...................................6
5.1 Technology integrity and capability.................................................................................7
6. Conclusion..........................................................................................................................7
References..................................................................................................................................9
Management Principles of E- Business 3
1. Industry Overview
Retailers are distinguished from manufacturing firms in that they do not manufacture goods
that are tangible. They buy products from suppliers in vast amounts for resale at a price to
buyers. The domestic market of retail stores is mature and highly competitive. Understanding
the field in which a corporation works provides an important basis for the study of the
particular enterprise, i.e. business analysis. Analysts focused on one or more markets also
perform equity analysis and credit analysis, resulting in synergies and efficiencies in collecting
and analysing knowledge. Analyses of the retailing industry are closely connected
(Kotarba.,2018). Together, sector and competition research will offer insight into drivers of
retail industry sales growth and market shares of rivals and therefore the future of top-line
growth and bottom-line performance of an individual corporation.
The concept of entry barriers relates to the ease with which new entrants can threaten
incumbents and can be an important element in assessing an retailing industry's competitive
climate. The market is expected to be highly competitive as new entrants will quickly join the
industry, then incumbents who want to increase rates will be undercut by newcomers. As a
consequence, sectors with low entry barriers appear to have low purchasing power. If
incumbents are covered by a bar, on the other hand. Industry concentration is sometimes, but
not necessarily, an indication that market leverage and rational rivalry will be open to an
industry. However, market heterogeneity is a much stronger indication that the industry is
competitive and there is little pricing control (Li., 2020). The influence of market capacity on
pricing is obvious: tight capacity provides more pricing leverage to participants when demand
for goods or services exceeds supply; overcapacity leads to price cuts and a highly volatile
atmosphere as demand is chased by surplus supply.
2. Introduction of Amazon UK
Amazon UK, which focuses on cloud computing, e-commerce, digital streaming, and AI,
is a global technology corporation headquartered in Seattle. It is considered one of the UK
firms of the Big Five (Boneva.,2018). The Industry of Information Technology. " perhaps the
most powerful financial and social powers on the planet quite possibly the main monetary
and social impacts on the world.
Amazon perceives by technological progression and size of mass for the change to
grounded areas. Deals and market capitalisation estimate it, and it is the world's driving on
the commercial web centre, AI collaborator maker, live-streaming website and distributed
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computing stage. Amazon is the world's driving Internet partnership by deals (Melović et
al.,.2020). The development of emerging technology, for example, is another immense
strength. Transaction encryption technologies and proprietary consumer technology, such as
one-click technology, simplify customers' online purchasing experience. In comparison,
Amazon.com emphasised an expert management team from the foundation when they hired.
3. Analysis of Amazon
Amazon has experienced the continuous digital transformation from its roots as a small
mail-order bookstore in 1994, to a multinational company with $38 billion in sales in 2017.
More recently, with Amazon Web Services and Dynamo, which has IoT capability, Amazon
has developed itself as a key player in web applications and database management for
companies. But sailing wasn't entirely smooth. This accelerated movement was chaotic in the
late 90s, and early 2000s device outages triggered factory shutdowns, inventory pile-ups, and
little planning for new product categories (Cirjevskis.,2020). The development and
sustainable digital strategies of Amazon.com through outsourced logistics, internal
capabilities and self-realisation and the provision of third-party services such as AWS, KDP,
Amazon Fulfilment, Digital Content.
According to the Value Chain research carried out, the customer-focused attitude is
one of Amazon's main assets. One of the organisation's key priorities is Jeff Bezos' vision of
the world's most customer-centric business. Because of the Internet's uniqueness, it can be
outlined that consumer expectations can be met and innovating on behalf of the customer and
personalising the shop with each user. Also, there are four value propositions for
Amazon.com, which are ease, option, price and service. Owing to the wide variety of items
sold, a high degree of customer support and customer-focused creativity designed to
maximise comfort, and Amazon.com is the world's biggest discounters in any product
segment, there are many benefits brand. In the other hand, owing to the product and service
spectrum of Amazon.com, these will also carry risks when the likelihood of reputation loss
occurs.
3.1 Being Customer-Centric
As a company consistently ranking number 1 with various consumer loyalty indices,
Amazon is exceptionally customer-centred both in its technologies and how it treats customer
reviews. Customer technology is Tools such as '1-click checkout', the ability to store several
credit cards and emails, and robust search features to speed up shopping time. Both of these
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have been established over time by listening to and reacting to consumer behaviour insights
gathered by behaviour analytics and reviews. The notorious 'question mark' email is a cultural
example of service to the consumer. Unhappy customers will email company founder Jeff
Bezos directly. When they do, it is stated that Jeff transmits this to the appropriate individual
with a simple, scaring the receiver's pants off. This suggests that they have 24 hours to fix the
client's problem (Kretschmer and Khashabi.,2020). This is one way that Jeff has made sure
that the client's voice is heard inside the organisation.
3.2 Driven by Digital Technology
The entire corporate system of Amazon bypassed conventional retail sales systems
and went directly to vendors, leveraging new technologies, the internet and efficient apps.
This has provided lower rates for consumers and the ease of internet shopping while opening
up foreign markets to manufacturers. If it isn't a disruption to infrastructure, so we don't know
what it is. Amazon has always been at the forefront of emerging technology to extend its
business options that think Amazon Online Services or optimise essential business functions.
For instance, Amazon can refine its warehousing infrastructure to reduce costs and expand its
flexibility by purchasing the Kiva warehouse robotics company. In 2014, to brace for the
holiday season, Amazon deployed more than 15,000 robots in its US warehouses.
3.3 An agile enterprise that can render changes
To conquer emerging markets and displace other business leaders, Amazon has
always experimented with new services. Though it defied the dot-com collapse of 2000, the
business model of Amazon needed to diversify. It launched Amazon Marketplace, the first
third-party reseller site in the world, in 2000. It didn't end there; however; Amazon Prime was
born in 2005. The membership promised free two-day delivery within the UK for an annual
flat fee, which was famous (Leimstoll et al.,.2018). One of the organisation's key priorities is
Jeff Bezos' vision of the world's most customer-centric business. Because of the Internet's
uniqueness, it can be outlined that consumer expectations can be met and innovating on
behalf of the customer and personalising the shop with each user.
By creating new technologies and products and leveraging innovations, Amazon
transforms physical retailing in much the same manner as it renovates AWS's in-house IT
infrastructure (Matarazzo et al.,.2020). Amazon has an information management architecture
that provides the CRM system with an advanced level and volume of data to connect and
understand its customers as a critical challenge by examining real-time customers' on-site
Management Principles of E- Business 6
behavioural and transactional data and determining its causes cart abandonment rate together
with market behavioural patterns. As a result, by optimising user lifetime value, Amazon.com
can create personalised and optimised products and service for its consumers to keep existing
customers happy rather than spending too many resources to attract new customers.
4. Amazon Strategy
Amazon's authoritative structure has been intentionally worked to contend in a way that is
better than contenders and to pick up a practical upper hand by utilising its profoundly
prepared and story need C-Level, the board and master groups as helpful and abnormal
resources that are empowered and affected by the web and IT stack. That is the reason
Amazon.com generally has divisions in tasks the executives, stock turn of events, R&D,
innovation and HR that are bunched corresponding, in contrast with customary stores Smart
frameworks, for example, reference points and RFID sensors, cell phones and cameras that
can influence and shape Amazon.com's store activities and dissemination offices, for
example, developments, WholeFoods store Even in the Amazon Go actual store that has been
tried, there are no business labourers in all racks and look at are overseen. In doing as such,
Amazon.com amplifies the viability of stockrooms, stockrooms and satisfaction focuses,
highlights administrations and offers astounding merchandise alongside a wide assortment of
topographically incorporated provider markets far and wide.
The Digital Transformation has always been having close connections with the sector
and now undergoing significant changes again, as the next 4th industrial revolution Industry.
It focuses on the end-to-end digitisation of physical properties and convergence of supply
chain members into digital ecosystems. Incorporating "digital" into the business models,
DNA is another major obstacle (Verhoef et al.,.2017). This is vital for the efficiency of every
enterprise, and it is becoming a critical management challenge. It is not enough to introduce
IT to the enterprise as in any IT-enabled change; Digital Transformation's effectiveness
depends on improvements in process and operations management. To achieve such power,
persons must be educated in a transition method that considers IT's particular obstacles. The
modern and standardised working conditions are positively creating a digital transformation.
5. Recommendations for progressing Digital Transformation Efforts
In leading Digital Transformation, the significant firms use digital to achieve
competitive leverage in conventional markets, from banking to development to
pharmaceuticals. They illuminated the ideals and activities that relate to effective digital
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transformation. It reveals what it takes to become a Digital Master, based on a review of more
than four hundred multinational companies, including Paints, Burberry, Caesars, Lloyds
Banking, Nike, Codelco Pernod Ricard.
In a simple, two-part structure, it discusses effective transition: where to invest in
digital skills, and how to drive the transformations. Within these, you can learn how to
improve processes better online, build a digital vision and organise your digitalised activities.
The execution of digital transformation from leadership-level planning to team
implementation on the field. Herbert suggests, in the greatest surprise of all, that actual digital
transition only has to happen once because, at its heart, it implies being more resilient to
change itself. Herbert distils it into five actionable steps of the 'how to' of digital
transformation devised by successes in every market. These phases serve as a repeatable
process for continuous innovation, helping you deliver outputs and progressively increase the
enterprise's progress immediately (Pappas et al.,.2020). In Digital Transformation, Herbert
builds on her expertise in the corporate leadership of transition and growth projects and
perspectives from professionals and organisational leaders.
Any workplaces are virtualised or remotely controllable, requiring new abilities to
interact and to grasp computer environments. Socially, clients are now learning new
capabilities to connect with modern companies to succeed in the Digital Century (Liu,.2020).
Not only is the Digital Age accelerating disruption in the business market, but it also appears
to be affecting changes in the public sector. One of the good themes is government
digitalisation, with further opportunities to be created in the future. While we understand the
presence of maturity models in this area, the academic world has not yet selected a
consensual Digital Transition maturity paradigm that can be applied to all research fields,
mainly developed by practitioners (e.g. IDC maturity model). Therefore, we present an in-
depth study of the distinction of relevant principles of digital transformation and a maturity
model to determine the organisational degree of digital transformation. (Mahase., 2019).
5.1 Technology integrity and capability
In terms of computational capacity, data collection and knowledge distribution, the
technical capabilities and power of digital transformation applications, that are the Internet of
Things (IoT), mobile technologies and cloud computing, are in many ways substantially
higher than in past technology-driven transformations (Reddy et al., 2017). The function and
importance of the information itself are changing dramatically, and one of the essential tools
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of the modern age has been personal data. In reality, we conclude that culture, economy and
academia have not yet wholly observed and appreciated the effects of the massive increase in
the quantity and quality of data produced every day, and the game-changing potential of big
data analytics (Li, F,.2020). Finally, the latest research state stresses the value of modular IT,
modern business platforms, and a stable and elastic operating backbone as part of an agile
digital architecture concerning technology convergence.
6. Conclusion
The leveraging disruptive technologies deliver opportunities based on more significant
consumer and technology awareness than competitors and the efficient use of highly qualified
human resources. In any step of the supply chain, Amazon has the blueprint for eliminating,
duplication, and simultaneously improving customer loyalty. Constant ingenuity to change
the present state and conventional ways of doing business (Zaki, 2019). Through developing
and presenting innovation alongside assets and products to profit the Amazonians, the retail
and 'Amazon-as-a-administration' (particularly AWS, Fulfillment-by-Amazon) businesses
have been upset and vanquished by Amazon.com. In any case, with regards to block and
mortar shopping, additional consideration can be taken, for example, the administration of
Whole Foods, to secure explicit data/information from physical and general stores to perceive
clients and encourage buys by fusing Amazon-Go innovation and Prime steadfastness
program.
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References
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In Innovation Management, Entrepreneurship and Sustainability (IMES 2018) (pp.
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Cirjevskis, A., 2020. The Transformation of Business Models in Technology-Enabled M&A:
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Kotarba, M., 2018. Digital transformation of business models. Foundations of
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Kretschmer, T. and Khashabi, P., 2020. Digital transformation and organisation design: An
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Leimstoll, U., Dannecker, A., Knechtli, H., Quade, M., Tanner, C. and Wölfle, R., 2018. E-
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Li, F., 2020. Leading digital transformation: three emerging approaches for managing the
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Li, F., 2020. The digital transformation of business models in the creative industries: A
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Liu, K., 2020, May. Digital Innovation and Transformation to Business Ecosystems.
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Mahase, E., 2019. Government hands Amazon free access to NHS information.
Matarazzo, M., Penco, L., Profumo, G. and Quaglia, R., 2020. Digital transformation and
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Reddy, S.K. and Reinartz, W., 2017. Digital transformation and value creation: Sea change
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