Amazon is a huge company

Khaburina Alena marketing-1

Essay#3

Amazon is a huge company which has much capacity. The company is known also as a master of supply chain. There are reasons to be called like this.

The supply chain of Amazon is developing very fast. For instance, the managers try to find innovations which make the developing of supply chain constant and more profitable for customers and for the company.

Comparing Amazon with Russian company Ozon we can say that Ozon tries to use benchmarking of Amazon. The great difference between the companies is that Amazon is a global company whilst Ozon operates in Russia.  This fact implies that supply chains of the companies are a different.

Amazon is focused on price, selection and availability, these factors depend on supply chain. The chain of Amazon is concerned warehouse management, transportation management, inbound and outbound shipping, demand forecasts, inventory planning etc[1]. Amazon uses great number of tools for integrating all these systems to make them work together. And this is an advantage.

Another advantage is that Amazon’s supply chain is very transparent and clear. This factor is beneficial as for the company so for the clients too.

Amazon is very innovative company and it uses lots of innovations, tries to exclude the human from its supply chain processes. This point is arguable. Because some processes can be easily managed by the machines but sometimes processes need the human mind.

 Russian version of Amazon is Ozon store. Ozon also states that supply chain is very significant for such kind of business. That’s why Ozon is constantly developing its supply system, adds innovations and investments.

Ozon has established long-term relationships with delivery companies which implies that the quality of this service is valuable.

 Ozon is concentrated also on price and availability so the supply chain plays important role for the company. Ozon is focused on attracting new partners in its chain in order to expand it.

Amongst the competitive advantages we can emphasize the trust of customers. Because the majority of Russian clients will buy something using Ozon but not other internet store. Especially concerning people who have already bought something on Ozon.

The advantages of Ozon is quite good results of time delivery, there is very small number of dissatisfied clients because of small number of errors. All these advantages are provoked by the established effective supply chain of Ozon store.

There can exist some recommendations for the Russian internet stores, the competitors of Ozon.

In order to be successful these stores should understand the crucial role of supply chain for their business. The advantage of Ozone is in its capacity, so for the competitors it’s very hard to struggle with established brand, loyalty of customers. And maybe the strong point is the variety of products which the company sells.

In other words the competitors of Ozone should be very patient. In order to compete with Ozone they should build relations with the delivery companies and with the suppliers. After this they should expand the channels but to make it in a very structured way in order to build very clear and transparent system as Amazon built.

In this case the companies will have the opportunity to attract more clients and customers won’t think only about Ozon when they hear the words “internet store”.

This strategy implies very big time expanses but using the benchmarking of both Amazon and Ozon the stores could save some time and other resources. And also they can learn on other companies’ mistakes.

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