Apart from selling products online, the company also generates revenue from various other sources such as co-branded credit card agreements, third party selling, reselling and online advertising (Google Finance, 2011). For the following countries Amzon. com has separate websites: United States, United Kingdom, Canada, Italy, France, Germany, Spain, China and Japan (Amazon. com, 2011). Amazon has numerous software development centres, fulfilment and warehousing centres across the globe to meet the growing demands (Reuters, 2011). Amazon’s Product Categories: Books, DVDs, videotapes, music CDs, musical instruments, toys & games, software, consumer electronics, sporting goods, lawn and garden items, apparel, clothing, kitchen items, gourmet food, tools, baby products, beauty products, watches, jewellery, industrial & scientific supplies, groceries and health and personal-care items (Amazon. com, 2011). Amazon’s Services: Amazon Web Services, Amazon Publishing, Amazon Prime, AmazonBasics, Amazon. com exclusives, Amapedia, Subscribe & Save, AmazonLocal, Amazon Wireless, askville, Amazon Marketplace, Amazon Fresh, etc (Amazon. com, 2011). Amazon. com and Operational Management Strategies Amazon. com has been very successful in applying operational management strategies to improve its efficiency and effectiveness.
Even though not all operational management strategies have been applied by Amazon. com, some of them have been. The primary operational management strategy that has resulted in the mammoth success of the company is product and service design and this paper mainly concentrate on this.
Following are the operational management strategies that Amazon. com has used to best effect: Product/Service Design Amazon. com mainly started as a service oriented company but has now diversified its business with numerous products and services. Service and product design has been one of the main operational management strategies that Amazon has used to become the largest online retailer in the world. In product design, the focus is mainly on actual designing, manufacturing and marketing of the product coupled with research and design, and new product development process.
The purpose here is to ensure that product has great qualities that meet the customer’s needs and demands and come up with diverse products. On the other hand, service design is focused on improving the quality of the service and in turn the customer’s experience. Service design concentrates on planning the whole operation and then ensuring that all the components of the operations are organized and executed as per the plan.
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