Discussion Board #1 Response
Jennifer, excellent choice in selecting Amazon for the discussion on the total quality management and how that contemporary management technique impacts Amazon and it’s business model. Amazon is a major Internet retailer in the United States and no other company has come close to Amazon with the expected of Alibaba. Alibaba is a successful disruptive company that is based in China similar to Amazon except with a different business model (Sampere, 2014, para. 2).
Total Quality Management (TQM)
“Total quality management (TQM) is a firm-wide management philosophy of continuously improving the quality of the products/services/processes by focusing on the customers’ needs and expectations to enhance satisfaction and firm performance” (Sadikoglu & Olcay, 2014, p. 1). Amazon’s business model is mainly focused on customer satisfaction with getting their customers the best deal, easy communication, and customer-oriented services. Alibaba has a similar business model; however, they provide no retailer markup, strict advertisement allowing premium prices for advertisers’, and target all customers regardless of customer income (Sadikoglu & Olcay, 2014, para. 5).
Critical Success Factors
For Amazon and Alibaba using the TQM is important and critical for success because customer satisfaction and the services they provide are most important. In studies found that firms that use the TQM strategy has a positive influence and impact on performance when the focus is customer satisfaction levels (Gharakhani, Rahmati, Farrokhi, & Farahmandian, 2013, 46). Both companies has different but similar business models; however, both focus on the customers need for products and services with the internet leading the way.
Overall very informative and great discussion board Jennifer. Looking at Amazon and the China’s company similar, Alibaba, gave more insight into that...