CH 7 EXAM QUESTIONS - This Exam contains: -Guarantee passing score -2...

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CH 7 EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -29 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Amazon's Wheel of Growth

Answer:

Large selection, customer experience, and lower prices are three pillars of:

Question 2: AWS (condensed)

Answer:

?Allows firms to rent industrial-strength computing capacity on an as-needed basis .?Goal was to monetize the firm's expertise in scalability and reliability.

Question 3: Fulfillment Centers - Picking

Answer:

?Kiva Robots - bring products to workers ?System determines: items to pick, shelf location ?Employee picks item off shelf, scan items to reduce inventory Employee puts all items in an order bin & sends bins on conveyor belts

Question 4: Amazon's cash conversion cycle

Answer:

Rapid inventory turnover and long payment terms enable Amazon to consistently post a negative cash conversion cycle. The firm sells products and collects money from customers in most cases before it has paid suppliers for these products.

Question 5: Amazon Web Services (AWS) + -

Answer:

AWS and competing cloud services offer several advantages, including increased scalability, reliability, security, lower labor costs, lower hardware costs, and the ability to shift computing from large, fixed-cost investments to those with variable costs.Firms using cloud providers lose control of certain aspects of their infrastructure, and an error or crash caused by the cloud provider could shut off or scale back vital service availability. Amazon and other vendors have experienced outages that have negatively impacted clients

Question 6: What are Amazon's 3 pillars of Buisness

Answer:

?Large selection ?Customer experience ?Lower prices Question 7: How do online retailers save money, in comparison to in-store retailers?

Answer:

Savings can come from employee costs, inventory, energy usage, land, and other facilities-related expenses.Question 8: What is one of the most important advantages Amazon has, that it is constantly investing in?

Answer:

Scale Scale gives Amazon additional bargaining leverage with suppliers, and it allows the firm to offer cheaper prices in many categories than nearly every other firm, online or off.Scale through multiple warehouses allows Amazon to offer more products, a greater product selection, and same-day delivery for urban areas near warehouses Question 9: Besides being a e-book, what is the true value of the Kindle (and then kindle fire)?

Answer:

While many refer to the Kindle as an e-reader, the Kindle isn't as much about reading digital books as it is about putting a store in the hands of the firm's over 300 million customers , not only allowing them to lap up goods from an increasingly massive digital trough, but also instantly linking those customers with the firm's entire inventory of physical products .

The Kindle itself as a sale of a product is rarely profitable, but its hidden value pays for itself, as it is linked to your amazon account

Question 10: Fulfillment Centers - Packing

Answer:

?System determines: box size, amount of bubble wrap & tape

?Employees pack the order

Question 11: Goal of Amazon

Answer:

Sell quickly & pay suppliers later (Keep inventory turns high)

Question 12: What provides the majority of Amazon's profits?

Answer:

AWS provides the majority of Amazon's corporate profit and is significantly ahead of rivals in terms of market share and available infrastructure.

Question 13: How does Amazon leverage your data?

Answer:

To create "your" personal site:

-Use insights from your data -Use Collaborative filtering

• Monitors trends among customers and uses the data to personalize an individual customer's

experience.

• Cookies

-Conduct A/B test 35% of sales comes from their firm's recommendations

Question 14: What does Amazon obsess over besides logistics?

Answer:

Customer Obsession Amazon prime key

Question 15: What did the Kindle do for Amazon?

Answer:

It allowed them to maintain their market share in the media (books, music, and video) market, which makes up 20% of the firms overall revenue.

Question 16: How has Amazon capitalized it scale advanatage

Answer:

Amazon has high bargaining power with Suppliers Created its own branded products Acquired Whole Foods Market Entered the B2Bmarket

Question 17: Fulfillment Centers - Receiving

Answer:

As new products arrive, they are scanned, placed on a pod shelf, & immediately available online

Question 18: Fulfillment Centers - Shipping

Answer:

?SLAM machines - scan, label, apply, manifest ?Name & address label is added only after box is sealed ?Box is weighed - for quality control ?Package is placed on correct conveyor for next transport (i.e. final destination, UPS/FedEx, Sortation Center) based on shipping method, location, speed

Question 19: How has Amazon used acquisition and category expansion?

Answer:

?Broaden its product offerings ?Absorb potentially threatening competitors ?Experiment with new products ?Integrate value-added businesses and technologies Question 20: Besides Amazon's e-commerce website, what are the other platforms that Amazon sells and markets?

Answer:

The firm's Kindle Fire, Fire TV, and Echo are additional platforms for delivering digital content, sales, and data gathering.These platforms face significant challenges in growing market share, and none has seen the success of the firm's e-book readers.