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    Amazon Dot Com Case Study Tips For All Questions

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    Manoj Ram

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    Amazon Dot Com Case Study Tips For All Questions

    Uploaded by

    Manoj Ram
    9 views13 pages

    Original Title

    Amazon dot com case study tips for all questions(3)

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    9 views13 pages

    Amazon Dot Com Case Study Tips For All Questions

    Uploaded by

    Manoj Ram

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    AMAZON.

    COM
    SUPPLY CHAIN
    MANAGEMENT
    CASE STUDY – VIDEO IN THE LINK BELOW
    HTTPS://WICHITA.HOSTED.PANOPTO.COM/PANOPTO/PAGES/VIEWER.ASPX
    ?ID=CF3153BE-63D6-41E3-816E-ADD20129A43B
    TEAMS

    • Breakouts during class


    • Turn in assignment independently
    LEARNING OBJECTIVES
    • Assess Amazon’s supply chain and identify its key competitive advantages.
    • Quantify Amazon’s ability to generate value from its supply chain.
    • Identify potential opportunities and challenges for Amazon in improving its
    supply chain.
    • Analyze the effects of the opportunities and challenges Amazon faces in its
    growth and evolution.
    ASSIGNMENT QUESTIONS

    1. Review Amazon’s supply chain. How is Amazon’s supply chain different from that
    of traditional brick-and-mortar retailers? Use exhibit 1, 2, and 3 in tips (part 1)
    2. What are the key advantages to the structure of Amazon’s supply chain and the
    company’s management of its supply chain operations? Support your analysis
    with data from the case. Use Exhibit 2 and Exhibit 4 in tips(part 2)
    3. What are the challenges Amazon faces, and what are the implications for its
    supply chain? Use Exhibit 2, 5, 6, 7, 8 (part 2)
    4. As Jeff Bezos, what steps would you take to improve Amazon’s supply chain?
    Why? (part 3)
    Exhibit 1: Board Plan

    Retail Strategy MIS Supply Distribution

    How are these tied together?


    Where are the interrelationships?

    Underpinnings:
    Culture:

    Performance: Future: Alternatives?


    How profitable is Amazon.com? Sustainable?
    Exhibit 3: Supply Chains of Amazon and Traditional Retailers
    Amazon Traditional Retailer

    Strategy

    Sales

    Supply/Proc
    urement

    Supply Chain
    Exhibit 4: Comparator Financial Ratios for Amazon, Walmart, and Target

    Amazon 2014 2015 2016 2017


    Inventory turns Cost of sales / inventory
    Days inventory Inventory / cost of sales x 365
    Days receivable Accounts Receivable /Sales x 365
    Days payable Accounts Payable / Cost of Sales /365
    Cash Conversion cycle CCC=Days Inventory + Days Receivable - Days Payable
    ROA Return on Assets
    ROE Return on Equity

    Walmart 2015 2016 2017 2018


    Inventory turns
    Days inventory
    Days receivable
    Days payable
    Cash Conversion cycle
    ROA
    ROE

    Target 2015 2016 2017 2018


    Inventory turns
    Days inventory
    Days receivable
    Days payable
    Cash Conversion cycle
    ROA
    ROE

    There is only a 30 day difference between the fiscal year ends of Amazon, Walmart and
    Note: Target
    Exhibit 5: Financial Analysis - Amazon Operating Income Margins

    Operating Income Margins (%): 2014 2015 2016 2017


    North America
    International
    AWS
    Total Operating Margin

    AWS = Amazon Web Services


    Exhibit 6: Financial Analysis - Amazon.com Business Segments
    (in US $ Millions)

    Amazon (Fiscal year end Dec 31) 2014 2015 2016 2017

    Net Sales:

    North America

    International

    Total Net Sales: 0 0 0 0

    Operating Income:

    North America

    International

    Total Operating Income 0 0 0 0


    Exhibit 7: Revenues and Fulfillment Expenses (in US $ Millions, for fiscal year end
    12/31)

    2011 2012 2013 2014 2015 2016 2017


    Product Sales
    Cost of Sales
    Fulfillment Expenses
    Fulfillment Expenses as % of Sales
    Fulfillment Expenses as % Cost of
    Sales

    Year-Over-Year Percentage Growth: 2011 2012 2013 2014 2015 2016 2017
    Product Sales
    Cost of Sales
    Fulfillment Expenses
    Exhibit 8 Year over Year Growth
    12

    10

    0
    2011 2012 2013 2014 2015 2016 2017

    Product Sales Cost of Sales Fulfillment Expenses


    ADDITIONAL QUESTIONS TO SUPPORT
    ASSIGNMENT
    1. Is Amazon a retailer, a logistics company, or a technology company?
    2. Why does Amazon allow third-party sellers to distribute products through its site?
    3. How profitable is the Amazon.com operation?
    4. What are the advantages and disadvantages of Amazon Prime?
    5. Can Amazon continue its dominance in e-commerce? What are the major threats to its
    business model?
    6. What services can brick-and-mortar retailers provide customers that Amazon cannot
    provide?
    7. What challenges does Amazon have with respect to handing customer returns?
    8. Would you invest in Amazon stock? Why or why not?

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