Innovation and Innovative Practices of Amazon – Management Assignment Help

Assignment Task

Task 

Assessment 1 – Biba Turnbull 
Despite Covid-19 having a generally negative impact on the world, one thing that came with the virus was a boom in innovative businesses needing to adapt to the changing world that the virus caused. One of the largest increases in businesses during the height of the pandemic was delivery, specifically food delivery. Whether that was for grocery delivery or through restaurant delivery companies such as Deliveroo and UberEats, the food home delivery market boomed. As a result of this increase in demand for food delivery, cracks began to appear for the ‘big’’ businesses such as Woolworths, Coles, Deliveroo, DoorDash and UberEats.

Milkrun CEO, Dany Milham, took note of these cracks and the issues that were arising so did what all good entrepreneurs do and turned it into an opportunity by creating disruptive innovation. Disruptive innovations are made possible because they get started in two types of markets that incumbents overlook; low-end footholds and new-market footholds. Low-end footholds exist because incumbents typically try to provide their most profitable and demanding customers with ever-improving products and services, and they pay less attention to less-demanding customers. In the case of new-market footholds, disrupters create a market where none existed. Put simply, they find a way to turn non-consumers into consumers (Christensen et al. 2015)

Milkrun, which currently operates in 35 suburbs around Sydney (with plans to enter Melbourne), has created a network of warehouses dubbed dark stores, which stock up to 2000 grocery products and enable delivery riders on e-bikes to get groceries to customers in 10 minutes or less. This is not only sustainable and cost-effective but also removes the time spent in traffic that other food delivery companies have to deal with. Since launching in September last year, the business has swelled to 500 staff and until the Omicron outbreak had recorded double-digit growth every week. (Redrupp, Jan 2022).

A key concept from the innovation behind Milkrun is the concept of high frequency; what are people constantly buying multiple times a week (even day) no matter what external factors are occurring? “The highest frequency is groceries with people sometimes ordering four times a day. I thought if we bought our own products, we could make money on the margin rather than the service fee,” says Milham.
Unlike Uber and Deliveroo, these companies don’t use the gig economy model. Their riders are employed on full-time, part-time and casual contracts, and receive the benefits one would expect from those arrangements, including paid leave entitlements where applicable. They are fully vertically integrated, meaning they own the whole experience: the apps, the riders and the goods themselves. Rather than relying on Woolies for supplies, they buy their own goods and distribute them through their compact dark stores. Each suburb supported by the platform usually has at least one associated dark store, meaning that any given customer is no more than a few kilometers away (Hennessy, Jan 2022).
“Having riders is a moat. Whoever has the most riders will win this game. That’s why Uber and Deliveroo are having such supply issues – they don’t own the riders or control the supply,” Mr Milham said.
Would this business be successful, sustainable and profitable in a pre-covid world?

Assesssment 1- Palwinder
Amazon is focusing on business sustainability by introducing innovative business practices to change the world. It is already observed that the company is gaining popularity among the customers through its application, and the customers are more attracted because they are picking the products, and they are getting delivered to their doorsteps. The company in the global market has made transaction experience easier and effective, and customers are automatically paying for products such as groceries through their accounts in Amazon. Now refers to one of the leading business innovations, and it is enhancing business sustainability by making shipping faster for customers (thinkmonsters.com, 2022). To handle the pandemic situation, the company has introduced such innovative practices in many areas so that customer satisfaction is ensured, and it is making the brand more popular in the target market.

The company is delivering products through business innovation, and contributing to sustainability by focusing on sustainable business operation. Taking effective steps related to supply chain, and it is committed to ensure that partners in the supply chain are treated with respect and dignity (aboutamazon.com, 2022). The business operation is not only focused on giving the best service to customers but also maintaining proper relationships with partners so that the company is popular for its coordination and connection with significant stakeholders. To ensure business sustainability, the company is improving packaging system, so that wastage can be avoided globally.
As per Jeff Bezos, the business model of Amazon focuses on three value propositions such as fast delivery, low price, and a detailed product selection (Pereira, 2020). In addition, such a value proposition is giving importance to business sustainability by considering the convenience of customers. The business model is framed in a way that customers will be benefited by connecting to the internet, and they will have access to wider ranges of products with reasonable prices and fastest delivery. In addition, the business model focuses on customer relationships because business sustainability can be ensured if the company can maintain healthy relationships with customers in the target market (Pereira, 2020). The business model is helping the company to grow and innovate by focusing on several channels of communication which are used to connect with customers and meet their requirements as needed.

The company is focusing on reducing wastage and recycling approaches so that it can help its employees and connect more customers to meet sustainable goals in the future. B2B or Business-to-business refers to the business model in which business or transaction is conducted among the retailer and wholesaler. Such a transaction happens in the supply chain when one company is purchasing raw material from another company. Amazon is one of the largest B2B online markets for wholesale, and is helping various companies to reshape its online business (aboutamazon.com, 2022). As the new innovative practice is still not popular across the world, will Prime Now help the online business of Amazon attract more customersn and help it top among the online business in the near future?
This is how Amazon is performing in the world to be sustainable

Assesment 1 Part 1
Tyrell Mayfield 
Founded in 2003 by Elon Musk, Tesla released their first electric sports car in 2008. by 2017 the tesla company was officially regarded as the most valuable automobile maker in the united states with a valuation over $56 Billion ($74B AUD) taking out the american heavyweight ford motor group.
Tesla produces unquestionably innovative products, including their range of electric cars that defy the consumers expectations like self driving vehicles and having the fastest and safest car all in the one package. Tesla is also committed to world changing technology, with it’s range of fast charging sustainable batteries. However, Tesla’s greatest innovation isn’t any of its individual inventions, it’s the company’s radically different business model.

Tesla’s Business Model:

•   Ambitious mission to transform global transportation and energy production including consumption systems
•   invests in infrastructure to make it easier for Tesla owners to cover longer distances, boosting uptake of their products
•   diversifies its products range with intuitive and useful consumer products that don’t fit into one single market or industry

Another unconventional element in Tesla’s business model is their marketing and production.  The company spends nothing on marketing and does not use advertisers.

For too long, the world has been talking about the imminent arrival of the electric car. Yet, despite the availability of affordable electric cars like Toyota Prius and Camry, consumers still don’t seem to be embracing the technology. 17.5 million cars were sold in the United states in 2018 and a mere 1% of those sales were electric cars. This shows the true appeal of electric cars has yet really taken root in mainstream culture. Tesla is trying to change this. First, by producing exciting and attention grabbing electric cars like self driving and fastest & safest cars, secondly, by working with fans and early adopters to finesse and fine tune each of their product releases. 
Another way Tesla aims to change the discussion around electric vehicles is by committing time, energy and resources to thinking about the big issues facing mankind. This commitment to working alongside early adopters is one of the things that makes Tesla such an innovative company.
Tesla’s goal is to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible. However, Tesla has a far broder innovation strategy than just making and developing market electric cars. Instead of simply focusing on the 
 

commercial success of its innovative products, tesla incorporates a strong focus on issues of global importance, including:

•     Sustainable transportation
•     Climate change mitigation 
•     Promoting renewable energy capture & storage 

In growing to be such an innovation powerhouse, Tesla has challenged and subverted a lot of conventional wisdom. This is a core part of innovation, taking something widely considered to be fact and exploding it with a bold new approach and possibilities.
Tesla is considered to be the beginners of electric vehicles, challenging all gas and diesel car manufactures. So far they have proven to be the most innovative of them all but the question is will they be the most renowned car manufacturer in the world further down the future for this reason?