Amazon is a Seattle-based American e-commerce and cloud computing corporation. The company was established in 1994 by Jeff Bezos and has become one of the world’s biggest online retailers (Bennett, 2022). The firm sells a broad range of items and services, such as books, electronics, fashion, furniture, food, toys, and jewelry. The analysis, therefore, is based on the organization environment study about Amazon company and relates it to MMRV Consulting Inc.
Environmental Issues
One of the significant internal environmental concerns that Amazon’s management facing is maintaining a high level of client service and happiness. This aspect is especially important since Amazon is a customer-centric firm whose success primarily depends on consumer loyalty. To tackle this problem, Amazon has introduced a variety of tactics, including customized suggestions, an extensive product range, simple search and navigation tools, and free two-day delivery for Prime members. Amazon has also made significant investments in its customer support staff, which is accessible 24 hours a day to answer queries and resolve consumer problems.
Another internal environmental concern for Amazon is managing its inventories cost-effectively and efficiently. Amazon has created and deployed complex software systems to address this issue to manage its inventory and monitor sales and client orders. This technology enables Amazon to rapidly detect which goods need to be reordered and reduce the inventory quantity held in warehouses.
The rising rivalry in the online retail market is one of the primary external environmental concerns that Amazon’s management has encountered. Traditional shops are extending their online presence, and smaller, more specialized online stores are vying for customers. To meet this difficulty, Amazon has undertaken a variety of methods, including competitive pricing, a diverse product range, and the introduction of new services such as Prime and Amazon Web Services. Another external environmental challenge for Amazon has increased government regulatory monitoring (Charan & Yang, 2022). Amazon has taken several steps to address this issue, including adopting a code of conduct for third-party sellers, enhancing its anti-trust compliance procedures, and investing in technology to identify and prevent fraud.
MMRV Consulting Inc
On the part of MMRV Consulting Inc, several recommendations should be made regarding how Amazon tackles its organization’s environmental issues. The initial internal environment is focused on client satisfaction, so the customer’s opinions about the services being provided must be examined continuously (Wang et al., 2018). Other advantages include ensuring that buyers’ demands are addressed satisfactorily and working hard to guarantee that services are of high quality. For example, the corporation must consider that the customers often complain about difficulties in reaching out to operators and a lack of responses when calling for assistance (Vollero et al., 2021).
Notably, as government regulatory monitoring remains a challenge for Amazon, the retailer should focus on establishing trusting relationships with its clients. The reason for such a suggestion is that when people perceive themselves as consumers rather than citizens, the public is more likely to support the company over the state’s limitations (Culpepper & Thelen, 2019). Therefore, Amazon should develop a system that would analyze clients’ feedback and promptly make relevant improvements.
The other issue is cost-effectiveness as an environmental strategy. Profit optimization and a company’s capacity to pay its obligations need cost efficiency. In dealing with this factor, the recommendation will be the use of cost-effective and capital-intensive methods in services such as websites where most customers do not have to travel. However, these customers can access services through the company’s website, ensuring that the company has a manageable burden on payments of salaries to many employees. The third environmental concern revolves around rivalry in the market.
This is a significant external environment issue, and one recommendation is to ensure that the firm maintains ongoing work on enhancing its sustainable competitive advantage. Rather than pursuing temporary successes, Amazon should concentrate on having a long-term edge, which can be achieved by investing in its intellectual capital (Khan et al., 2019). Accordingly, Amazon should focus on allocating its finances toward continuous development.
References
Bennett, M. M. (2022). Uncanny frontiers: Amazon in outer space. Dialogues in Human Geography, 12(2), 181-185. Web.
Charan, R., & Yang, J. (2022). The Amazon management system: The Ultimate Digital Business engine that creates extraordinary value for both customers and shareholders. Amazon. Web.
Culpepper, P. D., & Thelen, K. (2019). Are we all Amazon primed? Consumers and the politics of platform power. Comparative Political Studies, 53(2), 288-318. Web.
Khan, S. Z., Yang, Q., & Waheed, A. (2019). Investment in intangible resources and capabilities spurs sustainable competitive advantage and firm performance. Corporate Social Responsibility and Environmental Management, 26(2), 285-295. Web.
Vollero, A., Sardanelli, D., & Siano, A. (2021). Exploring the role of the Amazon effect on customer expectations: An analysis of user‐generated content in consumer electronics retailing. Journal of Consumer Behaviour, 1-12. Web.
Wang, Y., Lu, X., & Tan, Y. (2018). Impact of product attributes on customer satisfaction: An analysis of online reviews for washing machines. Electronic Commerce Research and Applications, 29, 1-11. Web.