Analysis Of Information System For Amazon Australia
This report is an analysis of amazon Australia. The document offers an analysis of an existing human activity system which has had many issues. It provides an analysis and the strategies CEOS have to integrate to generate a better customer service. It also involves its competitiveness in the market and its value chain. It involves important strategies which CEOS of amazon Australia should integrate to minimize internal and external problems and get progressive improvement. Finally, this document gives recommendation for the CEOS for the new system.
Amazon Australia is a company that has achieved unexpected growth, diversifying their products and services around the world. Amazon Australia is evolving and improving every moment, achieving the recognition of its brand trough online sales and its customer service. This company has faced various problems and poor customer response. However, Amazon Australia has integrated some strategies to improve every day customer service and sales. This project intent to introduce a new information system for Amazon Australia that will replace an existing human activity system. The project will analyze the existing human activity, it also analyzes the measures of success of the activity and what are the roles of the stakeholders. Finally, this project will pay particular attention of how the new system is used and how can it work for Amazon Australia and will highlight major strengths and weakness while offering some explanation for observed changes. For this reason, the report will intent to comment on the prospects and make recommendations that would improve Amazon Australia efficiency and effectiveness.
Overall analysis of Amazon Australia
Amazon Australia is a global leader in electronic commerce. This company has brought to Australia a significant progress in the international network of distribution, offer variety of products in the websites and customer service. Amazon Australia offers a wide variety of products, from books or electronic products, to tennis or diamond rackets. Technological innovation is the basis for the expansion of amazon Australia and allow customers to have more and more product categories, adapted to the costumer’s needs including a low price. Amazon Australia offers personalized shopping experience. For example, customers can buy quickly with the order 1-click and use various tools such a tip to discover new products.
The evolution of Amazon Australia website is determined to innovate constantly. Electronic commerce is still at an early stage. However, in the next years, customers will see how amazon creates new technology, expand to more geographic regions to improve the lives of costumers and sellers around Australia.
Amazon Australia is an e-commerce company, which started selling simple products in Australia and currently, it sells a wide range of products, from books to jewelry. Part of the success of amazon Australia. It is because they have the ability to innovate, incorporating variety and quantity of products lines in their offer and finally, it is perceived that amazon Australia not only puts the weight of their evolution in the human groups (costumers), but in their own human resources, which must qualify according to high standards of selection to be able to belong to the company.
The primary activities of amazon Australia, which have a direct impact on the results of the company and they are necessary for the proper functionating of the company:
Internal logistics: amazon Australia is characterized by having a low level of inventories in the storage despite the demand for products that it receives daily.
Operations: this is the set of services offered by amazon to their customers as well as the construction of their own products such a Kindle or Amazon fire. It would also include the rapid payment system.
External logistics: at this point Amazon prioritizes the orders that amazon Australia receives and the distribution, which make products and services reach costumers around Australia.
Marketing and sales: at this point is generated the costumer loyalty as well as advertising and those activities aimed at offering a good service to costumers and a cheap price compared to the sector.
After- sales service: at this point, all the facilities of amazon would enter to keep the conditions of the product sold, such as the guarantee, which is 30 days.Support activities:
Infrastructure: it refers all the activities of administration, planning, organization, finance and accounting that take place in the amazon Australia Company.
Human resources management: it is based on the training, recruitment and motivation for the employees. This is one of the most important points of the value chain, because employees make amazon Australia get their goals. For example, Amazon Australia is willing to agree on a small action package to motivate employees. Amazon Australia knows employees have a direct contact with the client. At this point the worker will treat the client better if he/she feels the ownership.
Technology: it is related to the diversification of new products that amazon is promoting. It is one of the strengths of Amazon Australia.
Provisioning: amazon Australia has some warehouses around Australia to distribute their products strategically, some of them are close to airports to make shipping faster. In addition, amazon needs a large number of raw materials to carry out these activities.
Competitive strategy of Amazon Australia
Bargaining power of buyers or costumers.
The power of buyers or costumer is high, because the costumers of amazon Australia are multiple and they have access to internet. For instance, buyers have access to all information about amazon, their products and services of online retailers. On the other hand, the access of internet has made, costumers can make an online purchase becoming familiar and common way of buying, being online shopping easier to buy, since anywhere at any time and without moving from their houses and it allows buyers to compare prices and get good offers and greater discounts. In addition, the power of costumers has generated more costumers, because a satisfied customer can tell their experience to ten or more people for that reason the power of buyers is high.
Bargaining power of suppliers.
Amazon Australia has generated strong relationships with the suppliers to cover the orders at the required time. Moreover, amazon has its own distribution line. For that reason, Amazon Australia does not pay high cost for physical maintenance of their products and they have lower inventory cost. Some factors which are associated with this force:
- Tendency of the buyer to replace the product
- Evolution of the relative prices of substitution
- The buyers exchange cost
- Perception of the level of differentiation of the product
- Number of substitute products available in the market.
Threat of substitutes or substitution.
There are many types of substitutes for the marketing of Amazon products including Hachette, yahoo, and free market. Therefore, amazon threat is respectively high, because costumers are also worried about consuming items through new channels looking for cheaper products. Amazon Australia has responded using innovations in information systems. Moreover, they have implemented the use of internet technology to offer low cost in their products, because they have lower inventory cost. It is a strategy based on relationship with distributors.
Competitive rivalry or competition with Amazon.
Entry of new competitors such an eBay and Yahoo. In addition, google offers new information systems for the purchase and sale of products for free. However, Amazon Australia offer values to costumers when from a previous purchase, costumers convince themselves for their good experiences of buying with amazon Australia. Although, there are many companies that handle the same type of services of amazon, but until these days, there is no one can be compared with amazon Australia? Moreover, the company is focused on costumer’s satisfaction. Amazon Australia is considered as the internet company that gives costumers satisfaction and confidence when they are buying. For that reason, this force is low.
Potential of new entrants into Amazon Australia.
Amazon has an advantage in its competitive structure, since there is no company that offer services as complete as amazon Australia. Moreover, the demand in amazon Australia is very controlled, because Amazon Australia manages product differentiation and different distribution channels. For that reason, the potential of new entrants or companies is a low force.
Measures of success (efficiency, efficacy, and effectiveness) for the existing human activity system
Efficiency of a customer service information system is decisive for amazon Australia. The parameters measured in the determination of the efficiency of a costumer service system are currently based on the quality of costumer service and the excellent costumer experience, which determinate the direction that the market go in terms of differentiation of business. For instance, Amazon Australia has improved the quality customer service which translate for them a better rating and increase profits and growth.Efficacy: the efficacy of the information system can be determined by finding out the customer service goals the objectives implemented and documented in the amazon Australia policies and training procedures, which allow employees to be aware of them.Effectiveness: Being able to be effectively with customers service system will allow Amazon Australia to improve costumer experience, which gives the possibility attract people, get better communication with the costumer and generate fidelity. For instance, in the last year, Amazon Australia has facilitated contact with the costumer integrating different channels of communication with costumers. For example, email, telephone and online chat, which allow users have a close contact communication with the employees of Amazon.
Recommendation and reflections
Maintaining a high score on valuations is an important factor to sell successfully in Amazon Australia. Costumers often check the ratings of other costumers when deciding whether to make a purchase from that seller. If Amazon Australia receives a negative rating, the next step is quickly determining the cause of the problem and doing their best to resolve it. Moreover, customer service and communication are other important aspects in terms of having a good relationship with the costumer. The secret is very easy to understand, basically Amazon Australia has to be focused on the costumer and on the communication strategy. For instance, one of the most important recommendations is make an hour of conducting a communication campaign that through the use of media, messaging and organized set of communication activities, it will generate specific outcomes to customers in a specified time. Social media have become an indispensable communication tool for Amazon Australia. For that reason, it is really important this company take care about the social media, because it implies great benefits in terms of generating costumer’s fidelity and generating better profits. Moreover, Amazon Australia costumers will not stop to read text that tell them how wonderful their products and services are. Bet on quality photographs and visually appealing designs that help boost the image of their products and spread them through different channels.Amazon Australia only has kept informed their costumers about their products. However, it is necessary to keep costumer informed and notify them about their changes, innovations, new services because everything will be useful for the costumers to be aware of everything that happen with the company, but do not overdo consumers with too much information, because they want to know the most important things and it will help to have a better communication and better relationship.
The report has been focusing in the new system information for amazon Australia. The paper looked into an existing human activity and their challenges according to the activity. The report explained the De Lone and Mc Lean model of information system success, BPMn notation for the existing activity and the measures of success of the human activity system. On the other part of the report, it went further to suggest a new information system, which help to solve amazon Australia issues and finally the report gives hips of good recommendations CEOS can apply to generate a better customer service according with the new LifeChat system. The overall findings refer in one specific situation. It is logical to think that costumers enter a trade and just look, but even if costumers ask for something, the answer from the employees will help customers to make any purchase. The same happen with visitors when they visit amazon Australia website. Many people can enter to browse, but others do so with the real intention of deciding to buy something. The fact is that a small little window of LifeChat on amazon Australia website makes the role of dependent is available to the visitor and help customers to make that purchase decision.
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