What measures would you use in a business like Amazon.com to evaluate the company

| May 11, 2016

What measures would you use in a business like Amazon.com to evaluate the company’s performance?

Amazon is paid by the customers before it requires paying its suppliers. Due to complicated supply chain forecasting, speedy inventory turns and in general company performance, Amazon has managed to construct a selling trace with an off putting operation cash flow cycle, which understands why Amazon is paid for products by clientele before they actually require paying their suppliers for the supplies.

Strategic planning would be smart for Amazon to use for performance evaluation. By Amazon using strategic planning they could give themselves a chance to improve their performance over an extended period of time. Amazon does not really have an inventory on items, and the inventory they do have is limited, reason being is that it helps to cut costs and reduce costs on items previously purchased.

Supply chain performance can help track customer’s information, especially for any of the repeat customers. This tracking can help with time, customers needs and want and to focus on what makes them happy or satisfied.

The performance of Amazon will determine one’s perception of the company. Some of the questions that Amazon could ask them selves to stay on track:

Do the customers prefer to purchase the item in a store that specializes in this type of item or from mega-store that provides one-stop shopping opportunities?

Amazon would obviously want to aim at the items where people prefer to shop the one-stop online shops since they are a strictly online e-shop.

Does the customer prefer next day delivery or lower prices?


This is one thing Amazon can do. They provide a “Prime membership” of paying an annual fee to get free and quick shipping on certain items. They also do their best to provide the lowest prices possible to keep their customers satisfied and coming back.

Amazon pretty much killed the Barnes & Nobles chain, with the development of the e-readers and tablets. In majority the vast book availability and the actual good delivery times makes Amazon very efficient as you mentioned too. But overall now it is considered like a first choice to go and look for deals, surpassing Ebay at times. Here is where I believe Ebay suffers in a sense, having a tedious process for buying. Swapping back and forth from Paypal to Ebay makes is a pain. I personally feel more comfortable buying from Amazon then Ebay. With that said, do you think technology played a big factor on the success of Amazon and the failure of others?

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