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The Amazon Case: Case Study Of Amazon

766 Words4 Pages

Amazon Case 1. Objective Finding ● Intense competition due to Amazon’s rapid expansion around the world (e.g. slow growth in China as Alibaba is dominating) ● Potential increase in shipping costs because of the limited number of shipping companies that Amazon work with. ● The risk of hackers as they posses threat of data loss and security breaches. ● The quality of products offered is decreasing due to having more third-party sellers joining the marketplace (e.g. selling junk) ● Fake product reviews which is degrading the honesty of the system and damaging customers faith in Amazon’s products ● Amazon delivery drivers entering multiple homes unauthorized poses critical threats and concern to Amazon’s customers, not to mention their brand. ● There have been several warnings posted to users of Amazon’s cloud data storage service including private customers as well as the world’s biggest businesses, government, and other public bodies. ● Maintaining Prime service is becoming too expensive ● Brutal workplace stigma, including collapsing of warehouse workers and employees crying at their desks 2. Fact Finding ● (Refer to the excel document for financial ratios) 3. Problem Finding ● The risk of shipping costs is threatening to Amazon as the company is very limited to UPS and FedEx. This situation subjects Amazon to an unfavorable position because these companies could impose damaging/unwanted agreements. Also, any adverse changes in these companies would eventually affect

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