Amazon And Its Technological Base To Function

Amazon and its technological base to function

Amazon has a very solid technological basis to manage the orders of millions of people in the world. As technology evolves, its technological tools have been improving. Starting with a sale of online books that could easily stand out among their competitors thanks to the fact that they saw the most important element for success in the client.

Today Amazon is held thanks to the fact that it has gone and continues to use a strategy that has given excellence in customer orientation service. It offers through its website a wide variety of products, and it has been able to implement a strategy based on demand chain planning. The central axis of its strategy is the value network that strengthens its supply chain. As Kotler say, P. And Keller, K.  regarding value networks “a system of associations and alliances that the company creates to generate, improve and deliver its offers."

To explain it better, Amazon works efficiently with its suppliers. In that aspect, this favors inventory flow to keep updated and ready to meet any demand. In this case, the supply chain flow begins with suppliers.

The type of business that Amazon uses, from the point of view of functions and channel flow, constitutes a forward flow activity. That is, from the company to the client. At this level, Amazon operates with a direct marketing channel, since it is a type of trade where sales are carried out online. And while Amazon is not a manufacturer, it sells without intermediaries and directly through the Internet.

Kotler, p. And Keller, K.  “A zero level channel or also called direct marketing channel, is made up of a manufacturer that sells directly to the final consumer." 

The improvement continues at Amazon involves the interest groups that the company has. As the case mentions, to energize the processes, it is one of the objectives that the company has and consequently the new changes that have been closely related to its approach to the administration of its supply chain and logistics. The example of the new service of the company called Amazon Fresh, which consists of an online delivery of grocery stores on the same day, also involves technological support and collaboration with suppliers. In this way, a vertical marketing system is carried out, a conventional marketing channel that, according to Kotler, P. And Keller, K.  “It is formed by a dependent manufacturer, one or more wholesalers and one or more retailers. No channel member has complete or substantial control over the other members.

To conclude, the formula that Amazon applies to continue growing is, to bet on technology and the advances or advantages offered by the Internet, which brings people so much, and that turns out to be a communication channel that is strengthening more and more dueto the e-commerce, and to the collaboration with their suppliers so that together they can continue giving a customer service of excellence.

It should also be noted that Amazon points to constant innovation and that is why the most advanced technological purchasing system in the world has taken out, where customers enter the premises, take what they need and leave withoutcashier. Everything works through an app with the bank account of the affiliated user and the scan when taking out the counter from the counter. Finally, another scan when leaving the premises with automatic payment to the user bank account. In addition, it is for sale on its web portal, an intelligent electronic device called Alexa, which operates as a voice assistant for home people, and is activated with the user’s voice receiving orders. An intelligent speaker connected to the Internet that facilitates the user information, and helps in carrying out certain tasks and with which it is possible to even hold a conversation.

As I have already said, Amazon has a very solid technological basis to manage the orders of millions of people in the world and its future will be reflected in how the company manages new technologies and innovations towards improving customer service.