The Evolving Image of Amazon.Com

In: Business and Management

Submitted By ranibs88
Words 967
Pages 4
The evolving image of amazon.com

1.

The ever-increasing profits that Amazon.com is generating, is a proof of its successful strategy to target all the market products. Initially Amazon.com has start up as a one of a kind book store and followed with a music library that targeted only the interested consumers. The department store has brought in increasing revenues.

I have drawn below a chart of two point to better understand the concept by highlighting the Pros and Cons

|Pros |Cons |
|Amazon.com provides a wide variety and for any shopper you wish |There is no specialization in their basic business start-up model|
|to book un-related goods. |i.e. books & music |
|Targets any online shopper |Targets only books & music shoppers |

Mr Jerry Wind the professor from Wharton School of business didn’t look into the bigger picture that retailing in un-related product store can generate more revenue from a single buyer. An interested book reader may not only buy a book however he may also wish to purchase a cell-phone or a watch or sunglasses for use personal use, and amazon.com has it all in their departmental store.

2.

General merchandise for affiliated businesses that operates their retail shop through amazon.com is a win-win business opportunity for the both parties.

Whether its jr.com, target.com or tigerdirect.com are benefiting from displaying their services/product on a famously and well-known website (amazon.com) and in return the amazon.com on the other hand is benefiting by having a variety in products, lowered prices, and commission based contract with these suppliers.…...

Similar Documents

Amazon.Com

...AMAZON.COM In May 1997, AMAZON.COM, a young American company, applied for a listing on the stock exchange by offering 3,000,000 shares with a nominal value of $0.01 each. The shares were put on the market at the price of $18. The capital thus raised served to cover the enormous financial needs incurred by the extremely rapid growth experienced by the company in just over 2 years. With the sale of 3,000,000 shares, 51% of the share capital remained in the hands of the founder and his family. ORIGINS AMAZON.COM was established in July 1994 in Seattle (USA) by 30-year-old Jeffrey P. Bezos. His idea was to sell books over the Internet: books, Bezos held, are in fact one of the few products that consumers are willing to buy on-line and AMAZON.COM offers them the possibility of doing it round-the-clock, whatever part of the world they are in. The company’s ultimate ambition is to become “leader in the on-line sale of products and services with a high information content” (entering, for example, the video and music business). AMAZON.COM, “Earth’s biggest bookstore”, started sales in 1995. Its first year of life was spent setting up the necessary infrastructure as well as planning and developing its activities and opening a Website. In May 1997, AMAZON.COM had about 2,500,000 titles in its catalogue (or rather, on its virtual shelves), i.e. 10 times the number of titles that can be found in the largest “physical” bookstore in the world. When shopping, the customer......

Words: 3302 - Pages: 14

Amazon.Com Strategy

...The Strategic Framework Of Amazon Online Amazon.com Overview Amazon.com was one of the first major companies to sell goods over the Internet and has become a worldwide established name. Amazon.com is an American e-commerce company that is based in Washington. It was founded by Jeff Bezos in 1994 and began as an online bookstore but due to its success, Amazon has diversified into other product lines and services such as groceries, electronics and Merchant Program (see Appendix 1 for detailed portfolio). Amazon. com’s stock price has fluctuated in recent years from $105 in 1999 to $5 in 2001 (Lauden and Traver, 2000). Amazon.com has developed separate websites for Canada, UK, Germany, France, China and Japan. Amazon.com vision is to become (Amazon.com, 2007): “Earth’s biggest selection and to be Earth’s most customer centric company.” Definition of Strategy An integrated set of actions aimed at increasing the long-term well-being and strength of the enterprise relative to competitors. strategic thinking: creative, entrepreneurial insight into the ways the enterprise could develop. Strategic planning: systematic, comprehensive analysis to develop a plan of action. Opportunistic decision making: effective reaction to unexpected threats and opportunities. Strategic management: having an effective combination of coherent planning, incisive thinking and astute opportunism. The Evolving Nature of Strategy and Strategic Planning in Organization: World War II: Formal......

Words: 8304 - Pages: 34

Amazon.Com

...valueproposition to watch out for.‘It believes the main competitive factors in its market segments include ‘‘selection, price, availability,convenience, information, discovery, brand recognition, personalised services, accessibility, customer service, reliability, speed of fulfilment, ease of use and ability to adapt to changing conditions, as wellas our customers’’ overall experience and trust in transactions with us and facilitated by us on behalf of third-party sellers’.Googling Amazon will show the different propositions explained in your region.For Amazon US, the proposition is clearest – the listing in Google states: Amazon.com Books: New & used textbooks, biographies, children's Online shopping from the earth'sbiggest selection of books, magazines, music, DVDs, videos, electronics, computers, software,apparel & accessories, shoes and for books. Amazon.com: Online Shopping for Electronics, Apparel, Computers. Online shopping for millions of new and used books on thousands of topics at everyday low prices. The fulfilment proposition in different countries will revolve around the minimum order for free delivery. Discounting for different books will also vary according to their popularity. 2.Using the case study, characterise Amazon’s approach to marketingcommunications. With reference to the six categories of e-communication tools described in Figure 1.10, probably thekey techniques are search engine marketing, affiliate marketing and partnerships with......

Words: 564 - Pages: 3

Amazon.Com

...Center for Research on Information Technology and Organizations UC Irvine Title: Competing in Book Retailing: The Case of Amazon.com Author: Shrikhande, Aarti; Gurbaxani, Viijay Publication Date: 11-01-1999 Series: I.T. in Business Publication Info: I.T. in Business, Center for Research on Information Technology and Organizations, UC Irvine Permalink: http://escholarship.org/uc/item/67p057vv Citation: Shrikhande, Aarti, & Gurbaxani, Viijay. (1999). Competing in Book Retailing: The Case of Amazon.com. UC Irvine: Center for Research on Information Technology and Organizations. Retrieved from: http://escholarship.org/uc/item/67p057vv eScholarship provides open access, scholarly publishing services to the University of California and delivers a dynamic research platform to scholars worldwide. COMPETING IN CENTER FOR RESEARCH ON INFORMATION TECHNOLOGY AND ORGANIZATIONS University of California, Irvine 3200 Berkeley Place Irvine, California 92697-4650 and Graduate School of Management AUTHORS: Aarti Shrikhande and Vijay Gurbaxani BOOK RETAILING: THE CASE OF AMAZON.COM NOVEMBER 1999 Acknowledgement: This research has been supported by grants from the CISE/IIS/CSS Division of the U.S. National Science Foundation and the NSF Industry/University Cooperative Research Center (CISE/EEC) to the Center for Research on Information Technology and Organizations (CRITO) at the University of California, Irvine. Industry sponsors include: ATL Products, the Boeing Company,......

Words: 10707 - Pages: 43

Amazon.Com

...Amazon.Com Strayer University Online 1. Examine how at least three (3) growth strategy alternatives utilized by Amazon.com in the global and domestic retail markets influenced profitability, and indicate if the strategies were successful. For the past 18 years, Amazon.com has entered a variety of product categories both domestically and globally. Since 1995, Amazon.com started by selling physical media and has expanded by adding categories such as electronics, toys, baby, tools & hardware, home & garden, apparel, sports & outdoors, jewelry & watches, health & personal care, beauty, shoes & accessories, dry goods, auto parts & accessories, Kindle Devise & Store, and office supplies. Amazon.com first entered the European market in the United Kingdom in 1998 by selling physical media, and has expanded to other nations. As of 2012 year-end, Amazon.com has achieved $61 billion in revenue a far cry of $34.2 billion in revenue just three year prior in 2010. The breakdown of the revenue mix is $34.8 billion in North America and $26.2 billion internationally in 2012. The top three categories in North America as presented by Amazon.com is electronics and other general merchandise, media, and other which “[i]nclude sales from non-retail activities, such as AWS in North America segment, advertising services, and our co-branded credit card agreements in both segments”. Amazon.com objective is “not to discount a small number of products for a......

Words: 1465 - Pages: 6

Amazon.Com

...of on of the world’s leading online publishing service provider – Amazon.com. The subsequent accounts contain facts and observations elicited from researches and personal analysis and interpretation. Amazon.com: a Brief Overview of the Company Amazon.com is an on line retailer of books and was established as a micro enterprise in the United States during 1994. It is among the most south-after online product/service provider. The company has applied the disruptive technology because of the fact that it has rapid expansion in the aspects of its operations such as business turnover and a spectacular rise in share value since public floatation in 1997 ( 2003). Moreover, Amazon.com is essentially an information broker and sells through the use of on line process. It is a disruptive technology since it holds a small, though increasing and inventory and that outsourced most of the aspects of its operations. The company can best manage a disruptive innovation as well as technology by means of an active communication channel between the alliances and partnerships with their respected publishers as well as other on-line retailers and technology providers as a strategic notion. Even though there are a couple of online bookstores that emerged before Amazon.com, it holds the distinction among the first major pioneers in American as well as worldwide online retailing. Today, the ambition of Amazon.com is to amicably become a premier online retailer through......

Words: 2868 - Pages: 12

Amazon.Com

...Introduction Amazon.com was incorporated in 1994, and opened its site online in 1995. It offers the world’s biggest online book retailer by largest customer base over 30 million people. Besides selling books, Amazon diversifies itself by selling movies, electronics, toys, and groceries. Amazon also generates some of revenue from other marketing such as online advertising and credit card agreement. Amazon has organized systems in two segments, which are North America and International. Websites are also being individually focused for UK, Germany, France, Japan, Canada, China, and Italy. Other than those countries, Amazon also provides them internationally shipping for some products. Amazon succeeds in its online business, and gains more net incomes than some competitor on ground such as Barnes and Noble, and Borders. Amazon’s e-business strategy is a combination of products. The company started with online books then other products to gain customers in a wide range. However, offering a large product variety, Amazon has still maintained its strong brand. 1. Discuss the pros and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently. Amazon plays strategy planning on the growth and diversification which objects to provide a “One Stop Shopping” for its customers. Amazon serves customers through the website focusing on selection, price, and convenience. There are million of unique......

Words: 303 - Pages: 2

Amazon.Com

...13 September 2010 Amazon.com Individual Case Question 1 Based on Item 7 (on pg. 19), Amazon.com’s “variable costs include product and content costs” while their fixed costs include the costs necessary to run [their] “technology infrastructure, build, enhance, and add features to [their] website.” Category expansion requires more servers to support the overwhelming data exchange between the site and consumers meaning that fixed costs will increase. Amazon.com is expecting an increase in spending for technology and content-related accounts meaning that both variable and fixed costs will be affected. Question 2 ’09 CM=Net Sales-VE=24,509-[(.45)X4,402]=$22,528.1 ’09 CMR=$CM/$Net Sales=22,528.1/24,509=.91918 ’08 CM=Net Sales-VE=19,166-[(.45)X3,428]=$17,623.4 ’08 CMR=$CM/$Net Sales=17,623.4/19,166=.91951 ’07 CM=Net Sales-VE=14,835-[(.45)X2,698]=$13,620.9 ’07 CMR=$CM/$Net Sales=13,620.9/14,835=.91816 Amazon.com has managed to keep their CMR at a remarkably constant percentage. The three-year average comes out to .91903, which means that between ’07 and ’09, Amazon.com’s variable costs are 92% of their total operating expenses. This means that an incredible amount of their spending over the past three years has come in the form of product and content costs, payment processing and related transaction costs, picking, packaging, and preparing orders for shipment, transportation, customer service supports and most of the marketing costs. Question 3 Part......

Words: 446 - Pages: 2

Amazon.Com

...Amazon.com - Financial Analysis Case Study Introduction The bookselling industry is one of the steady growing industries which have estimated the sales of $27 billion in the year 2006. The sales of the books highly depend on different seasons. The industry has diverse customers who buy different categories of books which includes the trade books, college books, professional books, mass market paper-back books. With stiff competition across the market, the companies are strongly focusing on adopting different ways and means so as to attract more and more consumers and achieving high market share in the industry. Company overview Amazon.com is considered to be the market player in the e-commerce industry (bookselling). Amazon.com was founded by Jeff Bezos, who focused on enhancing the book shopping experience of consumers, with innovation and new ways to sell books online. One of the major players of Amazon.com is Barnes and Noble. Amazon.com started as an online bookstore that has turned into one of the largest online retailers selling items from music and movies to artwork and furniture. As the company website states “it is by design that technological innovation drives the growth of Amazon.com to offer customers more types of products, more conveniently, and at even lower prices.” In this paper you will learn the financial health of the company Amazon.com. The 9-step process written about by Professor Piper will be followed to assess how financially sound Amazon.com...

Words: 2907 - Pages: 12

Amazon.Com

...Amazon.com - Financial Analysis Case Study Introduction The bookselling industry is one of the steady growing industries which have estimated the sales of $27 billion in the year 2006. The sales of the books highly depend on different seasons. The industry has diverse customers who buy different categories of books which includes the trade books, college books, professional books, mass market paper-back books. With stiff competition across the market, the companies are strongly focusing on adopting different ways and means so as to attract more and more consumers and achieving high market share in the industry. Company overview Amazon.com is considered to be the market player in the e-commerce industry (bookselling). Amazon.com was founded by Jeff Bezos, who focused on enhancing the book shopping experience of consumers, with innovation and new ways to sell books online. One of the major players of Amazon.com is Barnes and Noble. Amazon.com started as an online bookstore that has turned into one of the largest online retailers selling items from music and movies to artwork and furniture. As the company website states “it is by design that technological innovation drives the growth of Amazon.com to offer customers more types of products, more conveniently, and at even lower prices.” In this paper you will learn the financial health of the company Amazon.com. The 9-step process written about by Professor Piper will be followed to assess how financially sound Amazon.com...

Words: 2907 - Pages: 12

Amazon.Com

...Amazon.com was set up in 1994 and was open to the public in July 1995. Being one of the first ecommerce portals, it practically invented the online distribution model. Although Jeff Bezos never owned any physical shop, he intended to compete with established players like Barnes & Nobles. Amazon was a start-up on one hand and Barnes & Nobles was a century old store chain headquartered in 5th Avenue in New York. They are a book retail store giant and are in business for over 100 years, with a huge amount of capital at its disposal. Amazon followed a model where its tries to charge the lowest possible price for any particular product, unlike many, who try to charge the highest possible price. Being a new online only store back in 1995, when the internet was not mature and the whole concept of online shopping was new, it was important for them to make it an attractive option, given that for most customers, it would be hard for them to put their trust in it, having to pay first and get the product later. Amazon, originally an online bookstore, later diversified into selling other items. Being a fresh start-up company, it did not have a brand image to maintain which stores like Barnes & Nobles or Borders had to deal with. Today amazon sells almost everything except for perhaps military supplies making it a one stop destination for online shoppers. The majority of the sales are still generated from the Books, CD/DVD and videos. One of the key factors which have......

Words: 2093 - Pages: 9

Amazon.Com

... Discuss the pro and cons of Amazon’s growth and diversification of business and specialization, and make recommendations about what Amazon could have done differently. Amazon.com was founded in 1994; it is one of the largest book retailers online. Amazon.com also started offering different products online as well. Amazon.com had a variety of electronics like video, furniture, toys, and selling music (Amazon.com). Besides, Amazon has a lot of websites across the nation ranging from Canada to China. Amazon also does shipping to certain countries for some of their products. The growth and diversification of Amazon.com is to have a plan for their customer’s that makes it very convenience and making sure the prices of the products is a significant price for the customer’s to order online. The pros of Amazon.com are to influence the customer’s on saving money when ordering products online. Quality of the products making sure it is in good shape before shipment goes out to the customer’s. Another pro of Amazon.com would be seeing a huge market profit: In May 2006, Amazon.com made its grocery website and nearly 1,000 non-perishable items was placed on the grocery shelves (Amazon.com) Another pro would be individuals everyday goes on the website to shop for products. It is very convenience for customers. Amazon.com privacy act is on their website for the customer’s to read either before or after their orders are purchased. Amazon has reasonable online prices for the customer’s......

Words: 890 - Pages: 4

Amazon.Com

...Amazon.com Team B Assignment University of Phoenix The evolution of Amazon.com has increased the Internet giant’s footing in the e-commerce world, taking the book retailer from the beginnings of providing a shopping experience above the walk in bookstores of the past. Today, Amazon offers services to thousands of businesses as well as the continued service for both sellers and buyers of many products of music, apparel, movies, toys, pet supplies, and more. Amazon’s strategy has moved the Internet business from retail to competing with Google and Microsoft to offer data and information storage retrievable by uncomplicated software. Amazon’s use of e-business and e-commerce in the B2B and B2C realm continues to add services for businesses to reduce operating costs and increase the subscriber’s efficiency that places Amazon in a position unimaginable 10 years ago. Amazon.com is a business whose sole transactions involve the Internet to some extent. Unlike many traditional department stores, Amazon has no storefront from which to conduct business. Its entire operation operates via e-commerce or e-business. E-commerce is the sale, purchase, or exchange of items, including products and services, over a computer network. E-commerce is similar to e-business, but includes all aspects of a business, including developing customer relationships and collaborative efforts between companies. Amazon uses both e-business and e-commerce in its business dealings to......

Words: 1389 - Pages: 6

Amazon.Com

...apparel and kitchen gadgets (Amazon Global Resources, 2009). Customers still rank Amazon.com as the best online Internet retail shopping website (Farfan, 2011). This was based on their internet shopping experiences during the 2011 holiday shopping season (Farfan, 2011). Identifying Amazon’s Mission, Vision Statement and Primary Stakeholders Mission and vision statements are written for the employees and customers. Mission statements can be one sentence or a short paragraph which describes the purpose of the business. It identifies, the companies values and principle business aims. A vision statement can also be a sentence or a short paragraph providing a broad image of the future (Farfan, 2011). Amazon’s vision and mission statement are the same, "Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online (Farfan, 2011, pp. 20-21)." With a customer base of around 60 million shoppers, Amazon has indeed been true to their vision statement (Amazon Global Resources, 2009). As of January 19th, 2012, there were 3,327 shareholders of record of Amazons common stock; however there are a much larger number of beneficial owners (Amazon.com, 2011). The Primary stockholders of Amazon consist of anyone who owns shares, has a right to declare dividends, and a right to vote on certain company matters (Amazon.com, 2011). Identify the Five Forces of Competition and How it Impacts......

Words: 2092 - Pages: 9

Amazon.Com

...IT ELECTIVE (E-BUSINESS) Chapter 1 Case 1 AMAZON.COM Angeles, Catherine Marie Cabral, John Kevin Pangilin, Kristel Mae Sabater, Shenalou 1. New Jersey judge ruled that Amazon.com Inc. violated its agreement to give toy retailer Toys"R" Us Inc. the exclusive right to sell toys and baby products on Amazon's Web site. In the ruling,New Jersey Superior Court Judge Margaret Mary McVeigh said Toys "R" Us can sever theagreement it signed with Amazon in August 2000, in which it agreed to sell toys on Amazon.com'sWeb site, effectively putting Amazon in control of the Web address www.toysrus.com. The rulingpaves the way for Toys "R" Us to operate the Web site independently. Judge McVeigh deniedmonetary damages to both parties.Toys "R" Us filed suit in the New Jersey state court in May 2004 alleging Amazon breached thecontract. Amazon countersued in June 2004, alleging the toy retailer failed to keep items in stockand otherwise adhere to their agreement.The Amazon was disappointed to the judge findings they said that they strongly disagree with the judge's ruling, and they are in the process of reviewing a number of different options Regardless of the outcome and they remain committed to ensuring a great selection of toys for our customers atgreat prices. For its part the Toy R Us said that the company are preparing for the decision and iscommitted to providing customers online access to its web store. The Amazon spokesman said that the company disagrees with the......

Words: 1046 - Pages: 5