AMAZON & E-BAY

Organisational structures and Cultures

[Name of the institute]Organisational structures and Cultures

Introduction

The two companies, Amazon and eBay, manage inventories. Amazon is mainly a retailer that sells its products to consumers. Whereas, eBay is an auction house that provides a platform where consumers come together and sell their products to one another. However, a keen research reveals that there holds a strong competition between these two companies. For instance, during the 2002 holiday season, the site that received that second highest visitors after Amazon was eBay. The two companies pose tough competition to one another. The two companies indeed bear an i9mpressive impact in the corporate world, however, there organisational practices may differ from each other.

Amazon.com is one of the renowned companies that are associated with the procedures of e-Commerce. The Seattle, which is a Washington based company, has established from a point of book selling to a virtual Wal-Mart and selling diverse products on web, such as CDs, toys, cookware, tools, games and hardware. In the meantime, the company started offering services in selling both with help of auctions or by a fixed-price format. With this, the company has grown to be one of the major providers of technology to other companies, like Target and Toys 'R Us.

The growth of Amazon is tremendously high. Its revenues have shown a lofty increase from $149 million to $4.9 billion within four years. On the other hand, the increase in revenue has given rise to a possible increase in business losses. The year 2002 brought some deficit of $3 billion, and the company had to manage this deficit which caused decrease in the yearly savings.

EBay, on the other hand, has shown gradual but focused growth graph. The core activity of the business is auctions, and the company focuses in this majorly. It is true that that the company has grown over the time, but it is still relatively a small company with total revenues of $750 million. Both the companies made a start by offering simple stock of trajectories, but they provide striking and interesting disparities.

The following paper focuses on organisational metrics the companies follow and leave a mark in the business world. The practices are variant in nature will be explore in the paper given below.

Types of Inventories

Amazon and eBay use variety of stocks. The main are

•Raw material: These are the items which are used for production other items.

•Work under process: These are partial completed items and they are momentarily stored.

•Read made goods: These are completed products and stored for distribution.

•Transit inventory: It needs moving items.

•Buffer inventory: This stock controls concerns of supply and requirement.

•Anticipation inventory: This stock controls expectation of activities that can possibly take place in future.

The handling of a stock publish is to offer Amazon with all the details related to the stock, such as UPC/ISBN/EAN, headline, amount, cost etc. This detail helps the Amazon to list down the entire customer's product for promoting in the Amazon's product details ...