Question

Articulate the Insight Matrix approach to Amazon. Does it help breakdown the boundaries of existing business models within the industry? Are there opportunities to 'borrow' new business models from other industries? Which are most relevant?

This assignment accounts for a large proportion towards my final grade. Please make efforts to answer it.

Answer 1

Amazon has a very robust delivery management system. It has many Amazon delivery center where all the shipment of orders are handelled. The delivery centrer matric approach has been very successful and it is the reason why Amazon has become one to the top ecommerce industry in whole world. The approac is very simple actually. All the items are kept in a warehouse and are coded according to category and validity. Once an order is placed a ticket is raised and the item is moved from warehouse to packaging line in the premise itself. The packaging system is a moving conveyor system where people are employed to do the packaging. There are trainned staff for labeling the package, and there are inspection stage where it is checked correct package has correct lable on it. Once the packaging and labling is complete it moves to bonded storage room from where it is dispatched to delivery address. The logistic part is handelled by outsourced company to whom amazon pays as per contract.

Now if there is an error in packaging and labling the quality inspectors ensures the issue is resolved and the person is trained to do the correct job. In other scenario is the order and packaging material do not match then the supervisor checks the situation and that job is handelled by a separate team of expert. In this way amazon have been successfully handling its customer and keeping them happy.

In other side this business model is very much similar to the model followed by other ecommerce players. But amazon has an advantage of having many delivery centres and strict quality checking of the packaging. They all follow the concept of central delivery system. And the logistic part is separate domain, it is mostly outsourced and it is cheaper to outsource delivery rather than having a setup of delivery management system.

Yes I fell there are some business model which can be adopted from other industries. First thing FIFO concept (First In First Out) could be adopted for the perishable goods, in this way they can save the expiry of products and the losses for returning it back to manufacturer. Secondly they can have distributers along with their delivery centre where the high demand goods can be stored for quick and efficient delivery to customer.