For the process you chose in 1-3, identify the type (variable or attribute) of data you have collected for the outputs of interes

(Amazon) see attached

Running Head: SIX SIGMA PROBLEM STATEMENT 1

Six Sigma Problem Statement

The six sigma is a tool that is used to solve problems in an organization. Amazon is a company that has shown its capability in online retail. It has been dominating the online business until other companies have plugged into the industry. With the advancement of technology, e-commerce has created deep roots that enhance the processes and also the opportunities in the current market. Companies like Walmart have introduced their online charters which have threatened Amazon’s market and potential market. With the adaptability of the company to the different environments, Amazon may have received quite a large share of the market who was quite satisfied with the product but there were others who did not find the products to meet their expectations and needs which will make them choose other online retailers over Amazon (Murray, 2011).

The greatest problem and challenge that Amazon is facing is the fact that there is an increase in competition. With other companies cropping in such as eBay and Alibaba, they have engaged in aggressive ways to see that they are able to grab a market share. The rivalry may continue as there is continued growth in the online market (Gaus, 2019). One of the major observations in the past year is that Amazon has failed to create a competitive advantage as some of the products are delivered while having defaults while others do not meet the standards as advertised on the website. This has caused the customers to choose other brands from other retailers.

A competitive advantage is important to the customers as it creates an image in their minds which helps them choose the products and the services which they get. It is important to the business as it allows the company to maintain a strong customer base and attract more customers who will help the company meet the goals of profitability. Employees also get an advantage because of the internal competition which makes them gain leadership skills and resilience. They are also able to advance in their careers as they work to meet and fulfill the clients’ needs.

The company should create strategies that improve the different processes and the quality of the products that they sell to ensure that they remain competitive if not relevant in the market. Amazon should target on influencing their market by using their customer management. The company should also create strategies that are customer-centric, techno-centric and also those that improve the distribution logistics. The company may also try and improve their performance which ensures that the customer gets quality products. They can also consider expanding their shipping lines to developing countries and thus, increasing their customer base and profitability. They should also lobby with manufacturers who ensure that they have quality goods that match the website on similar images.

I conclusion, Amazon is a company that has tried to keep up with the trends of e-commerce. However, in the last years, the company has been losing its competitive advantage to other companies that have to enter the online retrial industries. This has affected the different stakeholders in the company and especially the employees, customers and the management. Amazon should improve its services using product differentiation and quality which attracts more customers since they already have a reputable brand.

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References

Gaus, A. (2019, January 6). Amazon’s 5 Biggest Challenges in 2019. Retrieved from https://www.thestreet.com/technology/amazon-key-challenges-for-2019-14825146

Murray, M. (2011, November 28). Six Sigma Concepts: The DMAIC Problem Solving Method. Retrieved from https://www.thebalancesmb.com/six-sigma-concepts-the-dmaic-problem-solving-method-2221186