In this task, I will be investigating of an organisation which uses enterprise
and innovation. The company which I will be doing this is Amazon. I will also
investigate how Amazon became successful using its innovation. Amazon is
based in United states.
Unit 1 - E.P7 - Explore how innovation and enterprise contribute to the
success of business.
Amazon.com
Introduction
The use of Innovation and enterprise has
made Amazon really successful. The way
innovation was displayed was from the
CEO which is Jeff Bezos. Innovation was
especially unveiled by Jeff Bezos introducing Amazon Prime Video Instant and
Amazon Prime One Day Delivery. This was its first innovative success (check
Slide 2). Even when Amazon is a huge online selling platform, it wasn’t afraid
of trying to enter and explore into different industries, especially through its
Amazon brand. The industries Amazon entered was industries such as Films
and Music. Amazon also did branch out to eBook, eTablets, Smartphones and
Software Development. As usual, Amazon loves to expand beyond their online
platform. It will not be hesitant to try out with the mix of success and failures.
However, luckily for Amazon most of these have been successes with notable
failures even in the scheme of going into the Smartphone Market through Fire
Phone. However, the most unsuccessful attempt of which Amazon has
experienced is Amazon Destination where they wanted to step into the travel
industry. This is due to incapability of competing into competitors such as
Groupon and Expedia.
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,Unit 1 - E.M5 - Analyse how successful the use of innovation and enterprise
has been for a given business.
Innovation is to endure a change in something established. This is especially by
revolutionary introductions of a new idea or a product. In my opinion, I firmly
agree on the fact that Amazon has undoubtedly used revolutionary innovation
methods at this current moment compare to other businesses in this era. The
topmost successful businesses do endure some sort of innovation to be unique
from their competitors. (Check Slide 3)
Amazon unlike its competitors has used Enterprise to be unique from the rest.
This is the reason why it is so successful and so profitable by being the 3rd most
respected organisation in the world right now. This is all due to its amazing
innovation and enterprise. (Check Slide 4)
Benefits
Amazon are always on the verge of updating and improving each aspect of their
products that they are branded towards. Examples like Amazon Kindle and their
development of software and Fire Tablets. The reason behind this is to satisfy their
customers and make it easy to use as much as possible and fixing the general bugs
and issues that come in the way. The updates are always free for customers. On the
other hand, Amazon does provide a tiered model to customers who have access to
Prime service. It provides 3 tiers which are Amazon Prime Video only, Amazon Prime
Video and Next day delivery with Amazon Prime Video, Prime Music, Prime Cloud
storage and Next day or Same Day Delivery.
Customer service is very important for Amazon goals. They want their customer
service to be the best to ensure loyalty is stayed upon from its customers. They do
have a telephone line set up which can be accessed internationally 24/7. they also
have an email service for customers to contact them with a contact us page and fast
replies within 12 hours. This is one of the reasons why Amazon contains a great
customer service.
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,Since the last decade Amazon has went uphill with its growth. All due to its amazing
innovation by the CEO Jeff Bezos. Examples of great innovative products are the Ring
Video Doorbell and Digital Books. However, the biggest innovation from Amazon is
the development of the Amazon Robotics.
The USP of Amazon is the variety It provides to its customers, something what the
Technological companies like Google, Microsoft and Facebook provide and Amazon
has joined in. Amazon now does not only provide an online shopping service, it now
provides a movie streaming service, online storage platform, own branded mobile
device and online books service.
Analysis
Clearly the expansion of Amazon has rapidly grown steadily upwards to the extent
Amazon has stretched to do so far. Developing a own branded product such as the
Amazon Kindle and Fire Tablet had easily led additional investments such as other
innovative products such as Ring Wi-fi Doorbell and Audible. However, Amazon’s
most innovative valuable addition was its Amazon Prime service. This service is the
main reason for Amazon’s expansion due to its customers being so loyal to it. Overall
effect of Amazon is analysed on its huge success, I am confident to say its very great
and Amazon wouldn’t be as successful without it.
Risks
Amazon has lost money from investments and
not made much ROI in its investments. Amazon
had a success in mobile devices such as Kinde
and Fire tablets. So therefore, Amazon
attempted to enter the phone market. However,
this was unsuccessful. (Check Slide 3) Once they
launched the Fire phone it was set price to $650
and then lowered down and down all the way to
$130. Therefore, it was then discontinued and was not available in the
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, website anymore. The main aim for the Fire phone was to attempt to edge
forward within the successful lines with the other phones such as tablets.
Developing of the phone was made with an issue and the share price for
Amazon dropped by 10% due to the major losses in the development.
Amazon did not release the sales figures for the Fire Phones however,
according to ComScore less than 35,000 Fire Phones was sold in the last 20
days. The Fire Phone has a small 0.02% of constitution in the Smartphone
Market in Canada and USA. Therefore, Apple iPhone 7 claimed 6.1%, iPhone 7
Plus with 4.9%, with the Oppo R9 from India has 2.5% and Samsung Galaxy J5
at 1.7%.
Analysis
In my opinion, The Amazon Fire Phone being a failure was more of a positive
sign for Amazon. This is due to Amazon giving it a try as Jeff Bezos wanted to
at least attempt into this industry and not regretting it. The Share price did
drop by 10% due to the high cost of production. Therefore, there wasn’t
enough excitement or enthusiasm in the product as much as Apple phones.
On the other hand, Amazon has kept growing no matter the failure and both
enterprise and innovation has been used by Amazon to further Develop and
update their product line. Overall, after the analysis, I believe that the failure
in the short term did had an impact in the company, however, looking at the
long-term Amazon has experienced, it has actually benefitted them by
knowing what works best and what doesn’t with no regrets for jeff Bezos.
Six Thinking Hats
It’s a powerful decision-making technique in situations such as in groups for
everyone to explore the situation form their own perspective at the same
time. This theory was developed by Edward de Bono and its point is to force
the individual outside his/ hers habitual thinking way and to focus more on
the things from different minds of perspective. This therefore allows for a
range of views on the specific situations. Amazon used this to see what the
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