 A Project Report On AMAZON

 Submitted By :
DEEPAK PRITHIANI & KAUSHAL BHUPTA
 Enrollment no

20SOMBA21514 & 20SOMBA21502

 Subject:

Management Information System

 Under guidance of:

Prof. Hiren Harsora

 Submitted to :

R.K. UNIVERSITY

School Of Management

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 INDEX
Serial No Particular Page No

1. About founder & company information 3

2. Mission, Vision, Objectives 4

3. Types of product& services 5

4. Major Achievement & Future prospect 6

5. PESTEL Analysis 7-8

6. Industry Analysis: Michael porter 5 forces model 9

7. Growth & evolution of industry 10

8. Players in industry 11

9. Human Resource Management 12-13

10. Marketing department 14

11. Issues in information System 15-16

12. Future outlook 17

13. Suggestion & recommendation 18

14. Conclusion 19

15 Swot analysis 20

16 Bibliography 21

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 1. About Founder & Company Information

 Amazon .com. Inc. is American international electronic commerce industry with

headquarters in Seattle, Washington.
 It is the largest internet-based company in United States.
 Amazon started as online bookstore but soon diversified selling DVD, VHS, CD,
VIDEO & MP3 streaming, software ,video games ,food, toys, jewelry.
 The company also produces consumer electronics like Amazon Kindle e-book
readers, Kindle Fire Tablet, Fire Tv, amazon is also a major provider of cloud
computing services.
 Jeff Bezos left his employment as vice-president of D.E. Shaw & Co. wall street
firm, and moved to Seattle. He began to work on a business plan for what would
eventually become Amazon.com.
 The company was founded in 1994.

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 2.Mission,Vision, Objectives

 The Vision of amazon is “ We seek to be earthed most customer centric

company for four primary customer sets: customer, seller, enterprise&
content creators.
 The Mission of amazon is “ To leverage technology and expertise of our
invaluable employees to provide our customers with the best shopping
experience on internet”.
 The Objectives of amazon is “ Not to discount a small number of
products for a limited period of time, but to offer low prices every day
and apply them broadly across our entire product range.

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 3.Types of Products & Services
The first image shows product of company

This is various services provided by amazon

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 4. Major Achievement & Future Aspect

 The major achievement of amazon are they have achieved various awards like:
Best Company for Women (2020), Best Company for Perks & Benefits(2020),
Best Company for Compensation (2020), Best Company for Professional
Development (2020).
 In 2019 amazon won for Best CEO 2019, Best Company Happiness, Best
Engineering team 2019, Best Company Outlook 2019.
 Based on 80,419 ratings and 4,528 participants ,employees at amazon are very
satisfied with their work experience.
The future Aspect of Amazon is:
1. Cashier free stores
2. Biometric payments
3. Reinventing departmental stores
4. Al- powered robots
5. Innovative healthcare
6. Fitness tracker
7. Amazon own delivery service
8. Amazon scout
9. Amazon air
10. More fulfillment centers.

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 5. PESTEL Analysis
PESTEL analysis includes of Amazon is as under:

1. Political :
 The hurdles before e-businesses are not the same as the traditional
businesses. Still, there are risk factors that affect the e-retail sector.
 Even for the E-businesses like Amazon and E-bay red tape in the Asian
countries can be a big problem.
 A news report published by Hindustan times highlighted that  for  any
foreign firm trying to do business in India, Red tape and regulatory issues
could be a major headache.
 The EU has started targeting the American technological firms and for
disputable reasons.
 Political stability also leads to economic stability. On the other hand
political disruption can disrupt the supply chain and result in reduced sales.

2. Economic:
 if the economic condition in a market is good, it will result in better sales
and higher profits.
 Even in the times of recession, the retail industry was doing well. It is
because people will always buy the regular items whether the economy is
doing well or not.
 E-retail grew by a whopping 23% in 2015 and much more growth is
expected in this sector in the coming years and amazon is expecting much
more profit

3. Social:
 Social and cultural trends are also an important factor behind the growth of
e-retail.
 The increased use of mobile technology and growth in digital technology
both have boosted online sales
 Changing consumer demographics are also going to affect the e-retail sector
positively
 They want the best products, available at least prices and delivered to their
doors. This type of convenience is offered only by the e-retailers. 

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4. Technological
 Technological factors have grown highly important in the 21st century. 
 Whether it is a traditional business or an online business each has to depend
on IT and other forms of technology to deliver better services.
 Now, apart from internet, Artificial intelligence and cognitive intelligence
have also become important to better serve the customers.
 Amazon is focusing on technology in terms of cloud computing (amazon
web service) an very system to satisfy its customers.
  Amazon Prime Air is a new future delivery system to deliver packages to
consumers using Unnamed Aerial Vehicles also known as drones.
 Cybercrime is a threat to Amazon. The whole business model is on stacks.
 Technology obsoletes with the passage of time and amazon is facing the
same issues which pressurize it to regularly work on technological assets.

5. Environmental
 Sustainability is also a very important concern for the businesses
worldwide. 
 Even the e-retailers have to focus on several areas like packaging, waste
reduction, and energy consumption to do business sustainably.
 Amazon has also invested a lot in CSR and sustainability. 
 It has invested  in sustainable packaging, waste reduction, and renewable
energy & invested in community of sustainability projects.
 As a result, “When customers want to receive a product in one or two days,
the carbon emissions increase substantially,” he said. “If you are willing to
wait a week, it’s like killing just 20 trees instead of 100 trees.”

6. Legal
 Legal compliance is also just as important for businesses globally.
 In any aspect of business, it is important for big brands like Amazon to
remain compliant with law.
 Apart from labour laws, there are other several areas where legal
compliance is essential. Any mistake can lead to big fines and loss of image.
 Amazon has already an Anti-counterfeit policy in placed. Every product
offered by sellers on amazon platform must be authentic. 
 Another legal factor is EU GDPR (General Data Protection Regulations)
affects Amazon and all those companies who collect customer data like
name, emails and bank information. 
 The European Union launched an investigation and fined Google and
Facebook. This is considered a huge threat to Amazon.

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 6. Industry analysis: Michael Porter 5 forces model

Following is detail analysis of amazon 5 forces model.

1. Competition rivalry – High

 The rivalry in this industry is high. This is because number of new players in
recent years has grown.
 The competitors of amazon are Flipkart, E-bay, Myntra, and others.
 For amazon its not just these other giants that are giving tough time many
small-scale retailer, brands, online stores are fighting for market share.
 All of this led to intense rivalry to amazon.
2.Threat of new entrants- Low
 Although it is difficult to create an online retail store but to reach level of amazon its
difficult requires time, effort, investment.
 The expansion and growth of digital technology has brought number of changes in
industry.
 Many new brands have entered, many international and domestic brands have
emerged.
 All of these can enter into market but won’t be able to cross amazon.
 It would require extensive investment in distribution, logistics, marketing, warehouse
etc.
 So, threat of new entrant is low.
3.Threat of Substitutes – High
 The substitution to amazon is retailers like Walmart, branded outlets, online stores of
brand that amazon sells, small market in city.
 Since amazon does not sell anything unique, it faces very high threat of substitution.
 An single bad experience will drive a customer away from online retailers. This
creates problem for amazon.
4. bargaining power of buyers- high
 Amazon lays a lot of stress on customer satisfaction and product quality.
 It ensures that the products are received on time and any returns or replacements are
properly handled to convert first-timers into repeat customers.
 Also buyers are well informed and due to increasing trend of online retailing.
 Buyers have an number of options to go on and buyers have an strong bargaining
power against amazon due to number of competitor.
5.bargainning power of supplier- low
 Amazon has the upper hand over the suppliers in the supply chain. Although the
number of suppliers to amazon is large and have to follow set of rules.
 Amazon ensures that the suppliers are purchasing follow ethical working principles at
their work locations. None of supplier can think of forward integration.
 Due to its large sales of every item, there are large number of suppliers ready to
supply amazon with required product

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 7. Growth & evolution of industry

 the company was founded as a result of what Jeff Bezos called his "regret

minimization framework", which described his efforts to fend off any regrets for
not participating sooner in the Internet business boom during that time. In 1994,
Bezos left his employment as vice-president of D. E. Shaw & Co., a Wall Street
firm, and moved to Seattle, Washington, where he began to work on a business
plan for what would become Amazon.com.
 On July 5, 1994, Bezos initially incorporated the company in Washington
state with the name Cadabra, Inc. After a few months he changed the name to
Amazon.com, Inc because a lawyer misheard its original name as "cadaver". In its
early days, the company was operated out of the garage of Bezos's house on
Northeast 28th Street in Bellevue, Washington.

 n 2014, Amazon launched the Fire Phone. The Fire Phone was meant to deliver
media streaming options but the venture failed, resulting in Amazon registering a
$170 million loss. This would also lead to the Fire Phone production being
stopped the following year. In August of the same year, Amazon would finalize
the acquisition of Twitch, a social video gaming streaming site for $970 million.
This new acquisition would be integrated into the game production division of
Amazon.

 In September 2017, Amazon announced plans to locate a second headquarters in

a metropolitan area with at least a million people. Cities needed to submit their
presentations by October 19, 2017 for the project called HQ2. The $5 billion
second headquarters, starting with 500,000 square feet and eventually expanding
to as much as 8 million square feet, may have as many as 50,000 employees. In
2017, Amazon announced it would build a new downtown Seattle building with
space for Mary's Place, a local charity in 2020.

 In November 2018, Amazon announced it would open its highly sought-after new
headquarters, known as (HQ2) in Long Island City, Queens, New York City, and
in the Crystal City neighbourhood of Arlington, Virginia.

 On February 14, 2019, Amazon announced it was not moving forward with plans
to build HQ2 in Queens[43] but would instead focus solely on the Arlington
location. The company plans to locate at least 25,000 employees at HQ2 by 2030
and will invest more than US$2.5 billion[44] to establish its new headquarters in
Crystal City as well as neighbouring Pentagon City and Potomac Yard, an area
jointly marketed as "National Landing." 

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 8. Players in the industry

 Amazon is the world's largest online retailer and is rapidly growing its footprint
in other areas such as physical retail stores, subscription services, and web
services.
 Amazon's retail store rivals include Target, Walmart, Best Buy, and Costco.
 For subscription services, Amazon competes with Netflix, Apple, and Google.
 In the web services category, Amazon has several rivals such as Oracle,
Microsoft, and IBM.

9. Human Resource Department

Human- refers to skilled workforce in organization

Resource- refers to limited availability
Management – refers how to optimize & make best use of such limited
or scarce resources to meet organization goals & objectives .

Human resource includes:

 The workforce of amazon in US

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  The workforce of amazon in India:

1. Total staff: men (58%)

Women(42%)
2.In managerial role: men (73%) & women ( 27%)
3. Total employees : 610,000
 The recruitment policy of amazon starts by an thought given by JEFF is” I
will rather interview 50 people and not hire anyone than hire the wrong
person”.
 The warehouse workers go for different interview process and candidates
for non warehouse workers go for five round interview that last on average 2
or 3 hours each.
 Amazon has set standard high when it comes to recruitment- the interview
process is so far from a walk in park, mainly due to their hiring
philosophy.
 Amazon has “ bar raiser “ program, where they select group of
amazon employees as candidate evaluator.
 5 to 6 bars are assigned to each candidate they interview them own
either via phone or in -person,
 If any bar raiser has an objection towards candidate- even he is
applying for same position that is not in the same department as bar
raiser
 Amazon founder takes totally different approach to Amazon hiring : he
gives prospect of hiring anti-pitch.
 The anti-pitch is an expression of company commitment to
transparency and practice of appreciating context rather than jumping
towards conclusion.

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 10.Marketing Department

 One of the best ways to use the full power of Amazon is to tap into its advertising
capabilities. With such a huge reach into consumer markets, it’s a unique channel for
advertising specific products, building your brand awareness, and more. 
 Amazon is an incredible platform on all fronts. With an massive reach (to the tune of
47% market share in the US and UK and 31% market share in Germany), it’s an
incredible outlet to showcase products, earn more sales, and build brand awareness.

Amazon marketing strategy:

 Amazon uses the high runner strategy to market its products. This strategy uses

data to uncover which products are in the highest demand in every
category. Amazon's pricing algorithm then prices those products competitively
and bids heavily on advertisements to pull people to these products.
 Amazon Marketing Service was Amazon’s first portal for product advertising. It
has since been retired and replaced with Amazon Advertising. This new portal is a
simplified way for Sellers to control all their media, marketing, and advertising
under one unified umbrella.
 Amazon’s goal is to learn as much about consumer shopping habits to deliver
better experiences to customers. Amazon knows which products are popular,
when they purchase it, how much they pay, and more. 
  Amazon uses data to boost its performance through three measures they are: first
and foremost it uses data to adjust prices and capture more margin via high
runner strategy. Secondly amazon uses consumer data to power its advertising
business. In 2018 amazon made $10 billion USD in revenue from advertising
alone.

How amazon promote its products

 Amazon may also use this consumer data to develop its own brands.
 The Amazon Basics label has been made around since 2012 ,but in last few years the
label has exploded.  
 Amazon launched Amazon Basics, a line of everyday products like batteries and
cookware, in 2009. It has been growing its private labels ever since, constructing
more than 100 fashion, home, and electronics brands in the last 10 years. In 2017,
private label brands accounted for $450 million in sales.

Amazon A+ page example

 Amazon has a premium program called A+ Content that helps you build product
pages that are inspiring, informative, and conversion-focused. The program is only
available to professional sellers who have been approved as brand owners. 
 A+ Content lets you put more multimedia content on your page through the form of
several different types of widgets. You can add rich text, additional images, videos,
and more through A+ Content.
  Thera breath is example of amazon A+ page. It includes standard of 4 points.
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 11.Issues of Information System

Amazon faces various problems that are discussed below:

1. Enhancing sorting of products & anti-phishing intervention-
 As far as this is concerned amazon needs to offer customers with option of
sorting of particular book/ product based on recent products, review, ranking
done by customers.
 Technical issues are most restraining forces of promoting new
implementation, amazon has been constantly affected by issues which ask
customer for accounting information of existing user of amazon.
 This has to be addressed by vigorous anti-phishing intervention that promotes
awareness amongst customers.

2. Integration of website operations with social networking –

 Amazon needs to enhance the synergy that turns as an outcome of integrating
the information sourcing from advertising, sales and post sales services. The
MIS of the organization must aid in offering touch points to the customers at
each point of time
 Amidst using the customer relationship platform for marketing and acquiring
more customers, Amazon must integrate its entire platform with social
networking websites
 It is evident from the MIS of E bay and upcoming E commerce
organizations that majority of the customers do exist in the social space
 Use of enterprise resources planning tools in social networking would help
Amazon in sharing the reviews and the responses of end users which will
enhance the trust amongst the customers

3. Establish customer relationship management intervention across business operation-

 Amazon has to devise more customer relationship marketing and also
enhances its logistics operations accordingly. This calls for allocation of more
human resource and expansion in to unexplored market.
 Segregation of the customer preferences based on the background ethnics will
aid helping hands to offer an exclusive web experience to different users from
different background with different languages
 Offering customized language preference to the customers at the time of
shopping will enhance the shopping experience. Use of Mis has to be extended
further in analysing the best brands.
 Analytics form the culture of information systems for Amazon as the company
has to aid not only the consumers but also the business associates and brands
who do business with Amazon.
 With the use of data from the purchasing trends of customers Amazon need to
analyse the next potential market in terms of demographics. The ageing
population has increased the scope for customizing the needs of the end users
as the mobile applications and population of i pad and tablet users have
increased.

4. Customize marketing campaign-

 The marketing campaigns of Amazon must be more tailored to the needs of
the customers.

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  Use of data of customers belonging to a particular community will promote
this practice there by offering newsletters which are most customized to the
needs of the consumer communities.
 Recommendation for Amazon would not comprise how it could change its
technology or platform rather will involve suggestions to correlate and make
the best use of available information. Acquisition of the market is not the
solution.
 Undoubtedly Amazon has registered the success but the changes in the IT and
E commerce platform needs constant changes to be done on the KPI’s and
KRA’s to the employees.
 MIS at this juncture becomes more evident as relating the success of
individual contribution of each one of the employee to that of the overall
success of the firm is the crucial challenge.

5. Resolve gap between marketing and sales activities-

 The inter relativity between the sales and the marketing department is yet
another area that needs more intervention through standardizing MIS systems
 ERP has driven the success of Amazon to a great extent, but the analysis of the
errors and pitfalls that Amazon has come across states that knowledge
management is yet another area which needs to integrate with the existing
Information system and its infrastructure.
 The employees must also be offered modes and means of viewing the number
of customer complaints and returned products through ERP packages this will
improve pro active offline customer service and help Amazon gain more
emotional bonding amongst its customers.
 The most attractive part of implementing the intelligent virtual agents for
Amazon is in the integration of the technology with other web based
applications
 Given the growth of social networking both on virtual and non virtual modes
Amazon will be able to spread its business further with the use of MIS in to
second life (a virtual social networking platform) this will ultimately offer a
long lasting emotional impression left in the minds of customers of Amazon.

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 12.Future Outlook

 Amazon on Friday announced that they will create 1 million jobs in India by 2025
through continued investment in technology, infrastructure, and logistics network.
The jobs created will be directly or indirectly across industries, skill development
,retail etc.
 Amazon founder also announced that they will invest $1 billion to help 10 million
traders, micro small and medium sized business across India , enabling cumulative
exports by $10 billion.
 Hiring talent to fill roles across Amazon in India, including software development
engineering, cloud computing, content creation, and customer support.
 Amazon’s operations network has created inclusive job opportunities across the
country, including hundreds of associates with hearing and speech impairment at
its fulfilment centres, sortation stations, and delivery stations. Amazon also has an
all-woman delivery station, along with a pilot internship program for individuals
with autism and intellectual disabilities.

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 13.Suggestions and recommendation

 suggestion

 be nicer to employees
 contribute more to open source
 open up amazon prime to more content stores
 build phones and tablets more like to echo
 embrace data transparency
 retail pricing transparency

 recommendation

1. create new incentive for prime members

2. expand prime now service areas
3. innovate with goal of customer retention.

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 14.Conclusion
Amazon has developed an unprecedented customer support only in the span of last 15 years
with its unique business model of online business. This not only allows the company to have
a cutting-edge advantage over the competitors but also makes it a cost leader in its business.
It overpasses all the supply chains to reach to the consumers through it innovative e-
commerce approach. This allows the company to have a control over its distribution channel
and so is able to cut down the prices of its products.
But Amazon needs to keep focusing on the research and development of better and more
innovative way of serving to the customer, which will not only maintains its market
leadership in the online business but also allows it to be all time favourite to millions of its
loyal customers around the globe.

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 15.Swot Analysis
1. Strength –
a. Strong brand name
b. Brand valuation
c. Cost leadership
d. Large number of third party seller

2. Weakness-
a. Tax avoidance controversy
b. Decline customer safety
c. Workplace condition

3. Opportunity-
a. Self driving technology
b. More acquisition
c. Launch of new rickshaw in India
d. Expanding physical store

4. Threats
a. Government regulation
b. Competition
c. Fake products
d. Fake review
e. limitations

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 16.Bibliography

Serial NO Title Book Author Name

1. Production Management R.B. KHANNA

2. Human Resource Management K. ASHWATHAPA

3. Financial Management I.M. PANDEY

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