¶ … Amazon.com:
Since its inception as a small online bookseller, Amazon.com has grown significantly to become a giant superstore firm. The growth of the firm has been fueled by various factors including its strong brand, exceptional customer value, unique shopping experience, huge volume of sales, and through realization of economies of scale. However, Amazon's growth has also been coupled by some losses as the firm has become exposed to greater competition and threats. In this growth process, Amazon.com has expanded its current business from selling books to include a broad range of products like music CDs, DVDs, video games, electronics, computer software, apparel, furniture, and even food items. In addition to its domestic market share in the United States, Amazon established four other distinct online stores that allowed the firm to ship some selected products globally.
Industry Analysis:
The book-selling industry consists of the traditional book selling, mail-order retailing, and online book selling business. The distribution model of traditional book-selling basically involves the publishing and printing of books by publishers and the sale of these books to wholesalers. The major advantage of this model is that the customers evaluate or browse the wares they are interested while at the bookstores (Anli, 2007).
The traditional book selling model was followed by the mail order book-selling model or business, whose distribution channel involves delivery to customers through the mail or postal system. Under this system, the end customer is permitted to order the books they are interested in from wherever they are through a catalogue that is provided by the bookseller. Upon the order of the books, the bookseller mails the selected books to the customer.
Amazon operates in the online book selling industry that offers more value and convenience to customers mainly because the Internet a widely used as a distribution channel by many customers. This firm is one of the several online book sellers that have exploited the Internet as a distribution channel and contributed to the development of online book selling. Unlike the traditional book selling method, online book selling model does not have a physical presence. Through this model, the company is able to interact with its customers who can offer reviews and recommendations. The reviews and recommendations of customers are then electronically forwarded to wholesalers or publishers. The need to have a...
Within four years it is anticipated at Amazon.com will, by capitalizing on their extensive it infrastructure, be able to manage the development of entirely new DRM approaches to profitably selling many forms of digital content from their many sites. Finally, with the extensive it infrastructure the company has today, the natural extension of their business model is into the area of Web Services. This projection of the Amazon.com business
Amazon as an Innovator and a Competitor E-Commerce is today considered a necessary element of a firm's business strategy. In many ways, the model for its importance may be attributed to the enormous success and sustainability of Amazon.com. It was with the pouplar inception of what first began as an online bookstore that retailers of all forms began to understand the true capacity of the internet to reach wide purchasing audiences,
Amazon represents one of the modern success stories that is similar to other stories such as Microsoft and Apple in many ways. For example, the company originally started in a garage with a limited budget. The company's founder, Jeff Bezos, focused more on the potential for new distribution channels to be built rather than any specific product. Books were only one of the products on a long list of products
Amazon's growth pattern has been simple. The company has grown in two main ways since its inception. The company has added more products to its lineup over the years and it has expanded internationally as well. The company has grown rapidly as the result of these additions to its lineup and organic growth within its core books business. The pros of this approach are that it allows the company to
Therefore, at the very outset, the owner would have to decide what his business is really about, and the ways in which he would have to change in order for the business to change as well. He would have to make a serious attempt at trying to understand the complex relationship that a business owner has with his business, and when he does this, and then his business would
2.0 Strategic Situation Analysis In order to understand the nature of aircraft manufacture at Boeing, it is important to have a clear vision of how outsourcing plays into the manufacture of aircraft. Let us use the example of Boeing's Dreamliner. The following illustration explains how outsourcing plays a key role in Boeing's business strategy. These represent TIER 1 suppliers. Figure 1. Source http://seekingalpha.com/article/17727-boeing-s-outsourcing-for-the-787-dreamliner From here, the parts go to the plant in Everett and
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