Primary Causes of Problems at Amazon.Com and their Remedies Case Study

Primary Causes of Problems at virago.Com and their Remedies - Case Study ExampleQuestion 4If Amazon buys products from other firms and simply ships them to customers, why does it need so many of its own distribution centersAmazon.com needs many distribution centers of its own because doing so enables it to control product deliveries to customers quickly and also helps the society to save on costs. In addition, the distribution centers were already in operation and therefore just had to be apply by Amazon.com in the partnership deals with other companies (Amazon.com).Question 5Will other retailers buy or lease the Web software and function from Amazon Can Amazon make sufficient money from selling these servicesOther retailers will buy or lease software services from Amazon.com because the company has immense infrastructure. Although Amazon.com has been making losses for many years due to the high initial costs and intensive promotion activities, it can still make enough money fro m selling the services it deals in. This evidenced by the fact that the companys financial position has improved somehow since the year 2000 (Post & Anderson, 2006). Customers confidence in the company regorge it in a position to make profit. Question 6Write a answer for to management that describes the primary cause of the problems, a detailed externalise to solve them, and show how the plan solves the problems and describe any other benefits it will provide.Running Head PRIMARY CAUSES OF PROBLEMS AT AMAZON.COMPrimary Causes of Problems at Amazon.Com and their RemediesAbstract This report evaluates the problems faced by Amazon.com since its inception in 1994 and its current status. A detailed plan to solve the problems is given together with an account of how the... In the year 2000, Amazon.com on overhauled its entire system in order to give it a more customer-appealing look.The company spent $200 million on new systems such as software from Epiphany, logistics from Manugistics Company and a new database management system (DBMS) from Oracle. Furthermore, the company signed more contracts with companies such as SAS for data withdrawal and appraisal. All these services of course came with additional costs to the company. In spite of the additional costs, the biggest and perhaps most expensive deal was between Amazon.com and Excelon as a form of championship-to business (B2B) integration. In the same year, Amazon.com linked with HP in a deal that would see the company offer information technology services to Amazons customers. Despite, Amazons desire to expand and dominate the online market, the company was criticized over its activities in 2000. For instance, that year the company conducted a price experiment by quoting different prices on DVDs to different customers. However, customers who logged in to Amazon.com web site at different times discovered that different prices were being offered at different times. Although Amazon.com later support that it was offering random discounts of between 20 to 40 per cent, this never augured well with some of its customers. Among the customers sentiments were that they were being charged more when they shopped more and that the exercise was awfully surreptitious and unscrupulous. Other customers referred to Amazon.com as a shyster.