Amazon’s Big Data Strategy




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

Abstract

This case is about how the leading e-commerce company Amazon, Inc. (Amazon) utilized its big data resources to improve its performance. Being the dominant retailer on the Internet, Amazon had a vast database regarding the tastes, preferences, and previous purchasing history of its customers. Amazon leveraged its big data resources to give more relevant product recommendations and improve its customer care quality. Banking heavily on its big data resources, it upgraded its customer recommendation system.

The 360 degree customer profiles developed using big data resources enabled Amazon to create highly personalized marketing messages for its customers. Apart from improving its business performance, big data resources were also put to some innovative uses like preventing theft of merchandise from its warehouses. Amazon also allowed other smaller e-commerce companies with limited resources to use its big data services. In 2010, Amazon launched an innovative service called Amazon Webstore allowing smaller companies to build shopping portals basing on Amazon’s e-commerce platform.

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Issuess

The case is structured to achieve the following teaching objectives:

  • Analyze how Amazon utilized its big data resources to build a better relationship with its customers.
  • Appreciate the importance of developing big data capabilities to improve the performance of a company.
  • Discuss and debate how Amazon helped other e-commerce portals to leverage on its big data resources.
  • Explore the ways in which Amazon could further utilize its big data resources to improve its business prospects.
  • Suggest ways in which Amazon could utilize its big data capabilities to emerge as a dominant player in the big data space.

Contents
Introduction
Background Note
Big Data at Amazon
Utilizing Big Data
Aiding Other Companies With Big Data
Looking Ahead
Exhibit

Keywords

E-commerce; Big data; Big data strategy; Big data process; Big data resources; Big data capabilities; Customer service; 360 degree customer profiles; Service interactions; Personalized marketing messages; Customer service quality; Cloud based Internet services; Analytics; Analytics eco-system; Amazon

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