Amazon’s Background
Amazon is a global corporation that works in the technology and e-commerce sectors. Founded in 1994, the organization has come a long way from its modest beginnings to become a global leader in e-commerce (Sangwa 42). As seen in Figs. 1 and 2 below, the corporation leads in retail media ad revenues and e-commerce sales. The business started as an internet retailer. The company is a major force in the business world, with a market valuation of over $1 trillion. The company’s investment in and use of various technology is responsible for its success. In order to achieve greater advancement and profitability, the corporation wants to invest more in new opportunities. Amazon must integrate AI into most of its activities to optimize profits and maintain growth.
Figure 1: Sales of Retail E-Commerce by Company
Amazon income is sourced from https://www.insiderintelligence.com/insights/
Figure 2: Revenues from Retail Media Ads by Company
https://www.insiderintelligence.com/insights/amazon-revenue/
Current, Real-world Problem
The organization must concentrate on the current technology available in the market as it works to seize and capitalize on possibilities that arise in the real world. Since artificial Intelligence (AI) entered the market in the modern era, practically every industry has sought ways to maximize its benefits (Singhal 28). Whether Amazon can use AI to boost its development and net income is the question this paper looks into. The business has already adopted integrating AI into its daily operations. Kohnstamm proposes, for example, that Amazon use AI to ensure buyers do not purchase faulty goods. Every month, the technology assists in scanning products for damage (Kohnstamm).
Justification for the Research
Businesses must look for ways to strengthen their competitive edge as the e-commerce and technology sectors become more competitive. By developing a competitive advantage, businesses can stay relevant in their industry. Growth and achieving significant returns are crucial factors that businesses should always maintain sight of. To maintain its growth and profitability as additional companies enter the market, Amazon must provide more possibilities for competition. Therefore, this study is essential to Amazon’s understanding of whether or not it can use AI to increase its revenue and business. It will be educational in that it will help the company comprehend how to use AI to optimize revenue growth and business expansion. The organization will decide whether to reconsider altering its tactics to optimize profitability and business expansion due to the examination. The topic of change has been chosen for the study. The idea was chosen as the business will concentrate on adopting and utilizing AI technology to generate expansion prospects.
The research question’s relevance to the selected key concept
The chosen key concept and the research topic are compatible. This is because the research will contribute to understanding how AI technologies may be used to optimize growth and profits. Following this comprehension, the process will be implemented using the change notion. Therefore, the change notion depends on the research question.
Methodology Employed to Examine the Problem
To make wise decisions, information must be gathered and analyzed. The methodology employed for gathering and evaluating data may differ based on the nature of the research. A literature review is the process employed to examine the problem under investigation. The problem will be investigated using secondary sources.
Main Findings
Perifanis and Kitsios claim that AI technologies present companies with many chances to revolutionize their operations in various industries (85). They point out that firms can gain a great deal from AI, yet they need to establish a compelling common vision before putting AI technologies into practice. On the other hand, the authors propose that the application of AI in business can facilitate the mobilization, coordination, and development of processes that improve customer value and increase an organization’s profitability.
Adinga discovered the transformational potential of AI. Technology has completely changed the way firms operate, significantly increasing their profitability. Utilizing AI has resulted in a 50% rise in revenue. Enhancing customer experiences, strengthening sales and marketing tactics, streamlining supply chain management, optimizing processes, and encouraging in-depth trend analysis and market research are just a few of the advantages of technology. Recommendation engines powered by Artificial Intelligence (AI) account for up to 35% of Amazon’s revenues (seaside, 2023). All of these can promote business growth and raise profits.
According to Haleem et al, businesses have recognized the benefits of adopting AI for marketing and other company activities. Organizations have found the best prices for their services or goods by utilizing technology, such as dynamic pricing modules (120). This has been essential to ensuring that companies maintain competitiveness and rapidly increase their earnings. Dynamic pricing modules with AI control make it easier for companies to price their services appropriately. In order to better serve peak seasons, Amazon uses Artificial Intelligence (AI) in demand forecasting to route goods to the most effective fulfillment centers in Southeast Asia. They also like employing AI to customize product recommendations based on customers’ past purchases and browsing behavior.
Analysis of the Results
The main goal of the research topic is to find out how Amazon can employ AI to boost revenue and expansion. The results show that enterprises have a great chance to take advantage of AI technologies. According to the results, AI can be used in various ways to achieve business expansion and income maximization. Based on the results, Amazon may use AI across its various business divisions to achieve growth and improved profits. For example, it can optimize its prices and employ AI for marketing. However, putting the technologies into practice will be difficult because the organization would have to invest more money in teaching staff members how to utilize them. The business can meet the challenge by first putting a few staff members through training so they can serve as mentors and coaches for new hires. As a result, the business will not have to spend as much money on outside trainers each time it brings on new hires.
Application of Relevant Business Management Tools, Theories, Techniques, and Terminology
The SWOT tool will need to be used for the internal analysis. This will make comprehending AI technologies’ benefits, risks, drawbacks, and shortcomings easier. The organization will implement transformative leadership theory by integrating AI technologies. There is room for expansion because the organization is innovative and has good leadership. AI will be used to take advantage of the opportunity since it will increase operational efficiency for the business. Enhanced productivity will lessen the possibility that consumers may receive defective goods.
Integration of the Chosen Key Concept
The organization must choose a team to oversee the change and integrate concepts. Ensuring the realization of all planned improvements inside the company will be contingent upon this. Kurt Lewin’s theory of change will be applied to direct the change process. The deployment of AI is consistent with Amazon’s organizational shift because it will facilitate tracking the entity’s required modifications. The changes made will aid in strengthening the organization’s strategy, structure, and culture.
Evidence of Evaluation
Since the information in the accompanying documents demonstrates how AI may benefit an organization if used correctly at various levels, it helps answer the research question. Additionally, as the publications highlight areas where firms should apply AI, they offer crucial information. As it looks into how the company could employ AI to maximize returns and business growth, this aligns with the research question.
The strength of supporting documents is their provision of accurate and trustworthy AI-based information. Having reliable information aids in making informed decisions. Therefore, the materials to address the study issue are consistent. The documents’ drawback is that they need to address the question explicitly.
The conclusions might have a small impact on the business stakeholders. However, in the long run, it will impact them. If implemented properly, the findings will eventually contribute to an increase in the entity’s profits. Customers and staff may gain from the company’s loyalty, and shareholders may profit from increased share prices. Over time, the business will increase its market dominance. Artificial Intelligence will replace humans in certain tasks. It will, however, allay the worry by expanding prospects in domains where technology is insufficient.
Conclusion
By incorporating AI throughout its operations, Amazon can leverage the technology to optimize business growth and profits. It should be used, for example, to improve customer experiences, sales and marketing strategies, workflow optimization, and supply chain management and to encourage in-depth trend analysis and market research. Since artificial Intelligence (AI) will present a greater chance for market dominance, it will be essential to achieving sustained growth and profitability for the business. Therefore, the business should concentrate on integrating AI technologies into most of its activities. To surpass competitors, Amazon’s leadership should always research new and innovative ways to capitalize on AI to increase profitability and expand their business.
Works Cited
Adinga. Leveraging AI for business growth: A guide to boosting profits. BI and Data Analytics, 2024. Accessed on 8th Feb. 2024 from https://www.itweb.co.za/article/leveraging-ai-for-business-growth-a-guide-to-boosting-profits/KPNG878Nx6pq4mwD
Haleem, Abid, Javaid, Mohd, Qadri, Mohd A., Singh, Ravi, P. and Suman, Rajiv. Artificial intelligence (AI) applications for marketing: A literature-based study. International Journal of Intelligent Networks, Vol. 3, 2022.
Khonstamm, Thomas. Artificial Intelligence is helping Amazon employees flag defective products before they ship. Amazon, 2023. Accessed on 8th Feb. 2024 from https://www.aboutamazon.com/news/amazon-ai/how-amazon-uses-ai-to-prevent-damaged-products.
Perifanis, Nikolaos-Alexandros and Kitsios, Fotis. Investigating the influence of artificial Intelligence on business value in the digital era of strategy: A literature review. Information, 14(2), 2023.
Sangwa, Sixbert. Amazon case study. “The best marketing strategies aren’t top down; they’re outside in.” Bod Third Party Titles, 2021. Print.
Singhal, Vishal. Leveraging artificial Intelligence for business success. Notion Press, 2020. Print.
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