Amazon Web Service Memo

Research Assignment 1

Date:          02/23/2013

To:             Melissa Jackson, Executive Director, Amazon AWS Unit

From: 

Subject:  AWS Analysis

I write this memo to help the Amazon Web Service (AWS) in analyzing and providing some information and processes. Also, I will give some recommendations to help AWS improve their services.

Internet is becoming popular in today. Everybody uses the Internet in their lives to work, live, study, and relax. Also, it is a useful tool to help people buy and sell their products. Therefore, the internet is very important for businesses, especially for Amazon, an internet retailer company, and it can help Amazon to achieve and compete with other companies in the web service. According to my point of view, AWS needs to focus on the price and service, and they are a good way to be successful in today. I think that the Cost Focus in Porter’s Four Competitive Strategies is a good strategies for Amazon because it provides a low price in an industry segment. When buying something, people in these days are usually interested to the price of products, and the pricing is an important factor that make customer to decide buy those products or not. If Amazon follows this strategy, people will always think about Amazon when they want to buy something in their lives, and that will make Amazon becomes a first choice company in the internet retailer field.

Additionally, for the primary activities in the business value chain of AWS, I recommend that the company implement about the information system of Sale and Marketing. The Sale and Marketing department can use some systems that let Amazon to collect information that is related to its customers and competitors such as purchasing tastes of customers, operating activities of competitors and so on. That will help Amazon can provide important decisions when the company needs. Moreover, this information system will also help Amazon to lock in customers in providing best means for them to purchase products.

Another primary activity in the business value chain of AWS is the Customer Service. This department needs to be hospitable in serving customers, and it also can gather customers’ feedbacks and comments to help the company improve its business. For example, the company can make a survey in their web to let customers make their observations with simple interface for users, or the company can provide coupons to encourage its customers to give feedback. That will help Amazon to have a connection between the company and customers. Also, the company can have an opportunity to lock in customers and buyers and know more about its customers’ needs in order to satisfy their demands.

The Amazon Web Service runs based on the Server Farm which uses many computer servers to perform services for customers such as commerce applications, storage, and so on in case one server has some problems that make it stop running; customer can use others for purchasing products.

Furthermore, the AWS also uses the Cloud Computing. It allows the company to organize the remote serves in order to let users can assess to the company’s services easily. In addition, the Cloud Computing is also a cost effectiveness because it lets AWS lease its serves, and that will make the company decrease the cost. It is a good way to help the company avoid many things that can happen related to financial risks.