Free Evaluating Performance Essay Sample

Amazon has applied various means on the Internet to shape the global business infrastructure. It presents an interesting case when the performance analysis is performed to measure the success and performance of the company like Amazon. Even though everyone generally believe that Amazon is an online e-business company that sells more than forty products ranging from books to electronics to grocery item but it is imperative to note that the company’s performance has improved over the years and from simply being a trading platform, it has moved to a global supply chain management company. Currently Amazon.com is not only a medium for sale / purchase but it also a display of logistics effort, a promotional platform for the internet to explore and also acts as an incubator for the online business start-up companies (Chaffey, 2014).
The supply chain is one of the most important aspects that can be considered when evaluating the company’s performance. Since its inception, the Amazon has prolonged its business and the direct company to customer model permits it to maintain the catalogue it has in huge warehouses, allowing the company to hold an enormous amount of goods with practically little capital assets and the threats of overstocking of inventory that traditional brick and mortar merchant can encounter (Simchi-Levi, 2008). Most importantly, the company is paid by the customers before it is required to pay its suppliers. This is another way to evaluate the company’s performance because the company over the years have been able to develop such credibility that it has managed to develop a selling trade with an off-putting cash flow – this means that the suppliers are paid once the clients are sold the products. This way, the working capital has proven to be an investment money for the company (Simchi-Levi, 2008).

References

Chaffey D. (2014) Amazon’s business strategy and revenue model: A history and 2014 update, SmartInsights http://www.smartinsights.com/digital-marketing-strategy/online-business-revenue-models/amazon-case-study/
Simchi-Levi, D., Kaminsky, P., Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies and Case Studies, 3rd Edition. New York, NY: McGraw-Hill.