Amazon.com business model supply chain strategy

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Business Finance

Description

Research and write about either Amazon.com or Starbucks, and respond to the following questions.

  • Describe their business model and explain their supply chain strategy.
  • Discuss the global challenges that they face in their supply chain.
  • Discuss the importance of aggregate planning to their supply chain and their partners.
  • What role does demand forecasting play in their supply chain strategy?
  • Explain how pricing promotions are used to change demand.

Write your answer in a Microsoft Word document in 800–1000 words. All written assessments should follow APA rules for attributing sources.

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Explanation & Answer

Attached.

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Amazon.com

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Describe their business model and explain their supply chain strategy
Amazon began as a book store in 1994 and developed to become one of the biggest

online stores selling a variety of goods. The online store is described as the company’s core
business model. The company is involved in selling products directly to consumers whereby the
firm makes a small profit. Amazon also provides a marketplace to other sellers and benefits
through sales commissions. The business model expands to subscription via the Amazon prime
services and the product line where buyers subscribe and get free shipment as well as streaming
service. The firm also generates revenues from e-book, kindle, and e-reader. Amazon has been
successful due to its unique supply chain strategy that ensures warehouses are well distributed
and products are easily accessible. Additionally, the firm generates revenues from AWS a cloud
infrastructure (Pahwa, 2019). Amazon offers delivery services to buyers through drones, vans,
trucks, and bikes in hours. The company uses a relay application to track the movement of the
goods to warehouses and deliveries as well (Banker, Cannane & Reiser, 2018).
Discuss the global challenges that they face in their supply chain.
Despite Amazon’s success in its unique strategies, the company still faces some global
c...


Anonymous
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