Value Chain Analysis - Amazon.com

2861 words 12 pages
Value Chain Analysis – Amazon.com

Unit 4 Individual Project Assignment

GB570: Managing The Value Chain

Dr. Craddock

Kaplan University

January 6, 2012

Value Chain Analysis
The purpose of this value chain analysis was to explore the dynamics of Amazon.com in terms of looking at the intricate foundation (value chain) the company has created to serve its millions of satisfied customers. This company operates in the highly competitive industry of e-commerce, which is made up of fast paced marketing, cut-throat pricing, and short attention spans. There are several major success factors to be highlighted in this particular analysis. Again, the primary theme revolves around how
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Identification and Analysis of Value Drivers
Customer based value drivers can be applied across industries, but are truly crucial when discussing e-commerce. Customers, online and offline, love deals and love to get the best price. Amazon.com has created a system that allows the shopper to get highly competitive prices for whatever it is they are looking for. The second value driver for customers is variety. Consumers love to have options, varieties, colors, and styles to choose from. The customer is now no longer constrained to what they can see on a shelf. Now the customer can search for the exact color, model, edition, version, or rendition that they want through the power of Amazon.com. The ability to access a wide variety of items at one’s fingertips is extremely powerful, and Amazon.com has tapped into that notion. The third value driver is convenience. Amazon.com has, without a doubt, been a key catalyst in the evolution of convenient shopping over the internet. A doctorate student in Anchorage, Alaska can now order a hard to find textbook from someone in New York, New York right from the convenience of their own home.
Value Proposition
Amazon.com’s value proposition revolves around the fact that the company is online based. There are no physical Amazon.com stores that one can visit and browse through. The only way to access Amazon.com is by going to the

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