Key Risks Impacting Service Delivery for Amazon and Air Canada

School
University of Ottawa**We aren't endorsed by this school
Course
MARKETING 4426
Subject
Information Systems
Date
Dec 10, 2024
Pages
1
Uploaded by KidHackerLemur1708
5. What risk factors might impact service delivery going forward?Both Amazon and Air Canada face significant risks that could impact their ability to provide effective service delivery, though the nature of these risks are significantly different for each company. For Amazon, the biggest concern is in its heavy reliance on technology. While automation allows for efficiency and scale, it can falter when dealing with unique or complex customer issues that require a personal touch (Zeithaml et al., 2018, p. 192). If customers feel disconnected or unsupported in these situations, it could damage Amazon’s reputation for exceptional service. Additionally, as competitors continually innovate, Amazon must stay ahead to maintain its position in the market. Privacy concerns are another major risk; any breach of customer data could severely erode trust, which is critical to Amazon’s business model.Air Canada’s risks are much more immediate and urgent. Negative publicity, such as the widely reported incident involving unsanitary seating conditions, can cause lasting damage to the airline’s reputation (Do Couto & Laframboise, 2023). Regaining customer confidence can be challenging, especially in a competitive airline industry where travelers have reliable alternative options. Furthermore, operational issues like flight delays, cancellations, and staffing shortages further complicates matters, making it difficult to meet customer expectations. Finally, Air Canada could face regulatory review due to its poor service quality, which could hinder its financial situation and operational capabilities thus complicating its recovery process.For both companies, addressing these risks head-on is essential. Amazon needs to strike a balance between automation and human interaction while staying vigilant about data security. Air Canada must prioritize delivering consistent, high-quality service while rebuilding its image. By learning from each other’s strengths and addressing their unique challenges, both companies can pave the way for long-term success.Evans, P. (2023, June 6). Air Canada last in on-time performance among major North American airlines in May. CBC News. Retrieved from https://www.cbc.ca/news/business/air-canada-performance-on-time-1.7072663
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