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Created with Fabric.js 1.4.5 Amazon Percentile and efficiency Between 2001 and 2003, Amazon invested $300,000 into building new distribution centers and acquiring information systems software. The massive technology core that keeps Amazon running entirely is the Linux based. As of 2005, Amazon has the world's three largest Linux databases, with a total capacity of 7.8 terabytes. The central Amazon data warehouse is made up of 28 Hewlett Packard servers, with four CPUs per node, running Oracle 9i database software. In the 2003 holiday season, Amazon processed a top-end 1 million shipments and 20 million inventory updates in one day. Information systems have provided Amazon with competitive advantage since it has been able to adapt its business model better than its competitors to the changes that the retail industry has experienced during the past decade such as the shift towards online shopping due to a more widespread use of Internet. Back in 2000, Amazon.com made expensive IS investments into building its high quality automated warehouses, and nowadays their supply chain is one of the most efficient and sophisticated in the world. A CRM system controls all supply chain activities of Amazon, such as transportation management, shipping activities and inventory planning, with the aim of reducing operational costs and optimizing logistic operations. The company has a valuation of $325 per share and generates return on invested capital exceeding the 50%, it has an active customer base of 137 million users that accounts for an annual growth rate of 20%. All in all, Amazon has one of the most capital efficient-models in e-commerce and its low cost operations, network effect and focus in customer service provide the company sustainable competitive advantage Amazon doubled in size from 2008 to 2011 with $34 billion in net sales and its current revenue growth is close to 40%. The company has a valuation of $325 per share and generates return on invested capital exceeding the 50%. All in all, Amazon has one of the most capital efficient-models in e-commerce and its low cost operations, network effect and focus in customer service provide the company sustainable competitive advantage. By: Aidan Moraru
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