Case Study Answer1: Technology to revamp bookselling business Amazon used internet technology for the first time to revamp the book selling business. For example it uses technology in an innovative way which improved user’s experience. As it has database which records other people recommendations and comments that can be useful for buyers coming to the website for the first time. Secondly Amazon used one to one marketing technique which helped to personalize the needs of customers. Moreover with the use of internet technology it took advantage of more profits because the value chain involved in delivering good from retailer to customer involves fewer intermediaries as compared to traditional retailers.
Answer2: Disruptive or Sustaining Technology Amazon initially followed disruptive technology which was new and changed the dimensions of bookselling business and opened new market for others as well. Since internet is no more novel and doing business on internet is a new trend of this century therefore we can say that disruptive technology has changed to sustaining technology. For example Amazon is bringing new products to its business such as music in addition to book selling thus creating improved products in existing markets and following sustained technology. Answer 3: Personalization to keep customers Loyal Amazon website is designed in way that it tracks customer buying behavior by monitoring time they spent on the website and web pages they visit or the subjects on which they search for books.
For instance Amazon uses this information and when next time customer visits the website it offers customer books based on the topics related to the last purchase they made. (prior transactions) Answer 4: Amazon e business Model: The business model of Amazon is B2C (Business to consumer).
It includes retail outlets where customer can shop while sitting at their homes. Therefore Amazon is the perfect example of business to consumer model. Since it has no physical existence, these types of businesses are called pure play which operates on the internet without opening physical stores. With the help of business model Amazon is able to achieve competitive advantage. As mentioned in case study that Amazon is always busy in creating advantage of its business for example the creation of Amazon S3, Amazon MP3, Vine and Kindle helped it to bring new services for its customers thus maintain competitive advantage. Answer 5: Use of m business to increase sales Amazon has seen the growth opportunity in m business as mentioned in case study that 350million customers will generate 14billion of transactions annually.
Therefore in order to increase sales Amazon collaborated with Nokia. It has launched new services for example “Amazon. com anywhere service” with the partnership with Nokia Amazon became the first online retailer who has actually worked in field of mcommerce.
Being first in the industry Amazon can take benefit of first mover advantage knowing that the potential the internet enabled devices. Answer 6: Web 1.0 characteristics of Amazon. com Before the introduction of web 2.0 technology websites were following web 1.0. The main characteristic of web 1.0 technology was that articles on the websites or websites can be read only passively, meaning that reader cannot comment or participate about the content of the web page. Moreover the website was static there was no change in the website. For instance the main features of web 1.0 that were observed on Amazon. com were, that it allow readers to review books but does not allow to comment or make list of books of favorite authors and many more interactive activities.
Another example of web 1.0 at Amazon. com was selling only those products which were stocked by Amazon unlike today where users can also sell their own products on the website. Answer 5: Web 2.0 Characteristics of Amazon. com Web 2.0 sites build interaction, community and shared content. These are the characteristics which user when visit Amazon. com experiences.
Amazon invites participation of users for example it allows user to participate by creating list of products such as top ten list or list of books related to same topic by various authors etc. Secondly Amazon also allows users to sell their own books and products through its own web site Amazon. com. Amazon also offers users activity to produce better search results, which is also the characteristic of 2.0. Answer 6: Future book store with web 3.0 Many experts foresee that web 3.0 will be like users personal assistant who will gather different data from various sources and turn it into useful information.
As with web 2.0 technology user has to search a lot if he has to find information irrespective of the topic, but web 3.0 will be a database of information. As mentioned in the case study that Amazon is pioneer in pure play book store business and not only this it has the advantage of first mover when it signed contract with Nokia in order to avail the opportunity of m business. It is important for business to fore see the future trends and devise strategies accordingly.
For instance Amazon. com can make use of 3.0 technologies and develop state of the art book store by collaborating with different companies. For example if any user wants to sell some product on Amazon. com and wants to purchase another product of same category within the same price range and with in specific time period web 3.0 technology will enable him to do so by saving time and effort. With the introduction of web 3.0 Amazon will be able to attract more customer traffic and earn more revenues because of its ability to serve customers in a novel way thus maintaining competitive advantage through differentiation.